Investment Q&A

Q: ETF Short List question asked by Orion on Nov 1/13:

Horizons Funds has a seasonal ETF fund HAC.TO which came out about 3 years ago at $10 and it is now $13.59. The managers use seasonal and technical analysis to enter/exit positions. The managers (Brooke Thackery, Don Vialoux, and Jon Vialoux) appear regularly on BNN.CA video interviews. Thackery authors an annual manual on seasonal investing and has a free monthly letter and mid-month videos promoting the funds activities. Don Vialoux publishes a daily free letter at www.timingthemarket.ca where other ETF/seasonal articles exist. Also check out the structural differences between ETF's and ETN's. Yahoo finance has a components link to assess an ETF's components and weights. Trading volume of an ETF might also assist in determining 'best in class'.

Q: Hi, I recently looked at relative growth and valuation of different economies and it seems that Norway stands out. Do you agree? If so, what would you think about NORW ETF right now?

Q: I have a mutual fund question, about a specific fund but more from an investment understanding perspective than picking on that fund. I know you're not fans of them, and the more I learn, the more I understand why (which is why I'm in the process of weaning myself away from our "advisor").

Our advisor has about 75% of my wife's $90k RRSP in a specific mutual fund, let's just call it Fund A from Company XYZ. This fund's investment objective & strategy is to "generate income and long-term capital growth by investing primarily in a diversified portfolio of Canadian dollar denominated fixed income securities". The funds top 30 holdings -- in fact, its top TWO holdings!, are 62% Company XYZ's (i.e. the fund company's) Bond Fund, and 37% Company XYZ's Cdn Dividend Fund, leaving 1% for everything else (unspecified).

Does this mean I'm paying the MER twice, once at the level of the fund itself, and again at the level of the constituent funds?

Would this situation, in isolation, be enough to get me out of this fund?

The funds MER is 2.3%, and its total return since the advisor bought it in July 2012 is 1.1%.

That certainly sounds like a good reason to get out of this fund especially and in particular.

Thanks again for all your investment advice, we beginning investors really appreciate it!

Q: Hi Peter and 5iResearch Team,
Can you tell me if you like Vanguard Dev. ex NA Index. I know it is small, but its Vanguard, not hedged? Do you think it is time to increase exposure to Europe?
Thank you.

Q: TTFS Trim Tabs Float Shrink ETF I've always had an admiration for the thinking behind Trim Tabs. This ETF is a case in point.
It has done well in a market where nearly everything has done well. What do you think of it and how do you think it would perform versus S&P index in a down market?

Q: With the IPCCs release of their latest climate change report, I'm concerned what will happen to the TSX which is over 30 percent energy stocks should governments finally decide to clamp down on carbon emissions.How could ETF investors protect themselves? Would you buy an alternative energy etf like TAN or is there a better way to hedge potential losses over time?

Q: ETF Short list: - - I have been wandering through considerable posts on ETF's here and in other areas online for some weeks now, and trying to formulate a clear short list of best in class ETF's, but more specifically, the BEST TIME/SCENARIO to move INTO and OUT of each one of them for income, growth and security of capital. There are so many market areas they cover and such diverse offerings that a concise summary would be very helpful. Does anyone have anything like this already that they would be willing to share? Thanks in advance.

Q: Hi guys. I know so little about individual US stocks I've pretty much decided to go with ETFs. Along with an S&P ETF, which sectors do you think I should look at for the near future? I currently own RHS, IHI, and XTN.

Q: Hi Peter, I am wondering how you'd suggest investing $5500 in a new TFSA for my daughter who just turned 18. Have a online account set up. She won't need the money for 4+ years while she complete her post-secondary. Was thinking about HCG but am concerned if the housing market turns this may be too risky. Maybe VDY or CDZ?

Q: Hello Peter.
I am always looking for a home for my cash when not fully invested. Money markets provide a skinny but safe return.
I have noticed a couple of senior loan ETFs ie blk and fsl.
My understanding is in a world of increasing interest rates the holdings in these ETF will have their yields also increase (floating) thus the best of 2 worlds. Knowing there is no Santa Clause what am I missing

as always
Thanks

Q: Could you please give me your opinion on ZJO and ZJG Thanx Robbie

Q: I am trying to avoid the usurous mutual fund fees --Can you recommend a couple of good options for me ? Thanx

Q: What s&p etf would you currently recommend for a long term hold

Q: Hi,

What do you think of XLA? Or is there another emerging markets ETF that you'd recommend, preferably with a dividend?

Q: Hi,

I'm a longer term investor with a medium risk appetite and I was interested in Healthcare stocks but wonder if I have missed the boat?

Can you recommend any CDN healthcare stock or etf with 2-5% dividend or US ETF?

Can you give me your thoughts on OHI? I'm interested in it because it had a a major pullback recently, unlike the others Healthcare ETFs, and it sports a hefty dividend.

Q: HI enjoyed watching your show on BNN. I am having trouble spending the time to pick and analyze individual stocks and I am looking to slowly switch to ETF based investments. So I took a small 1000 share position in ZMI and I am thinking of just gradually adding to it over time as money becomes available inside my RRSP. I am looking to retire in about 5-6 years. I noticed you haven't commented on ZMI, thoughts? Thanks

Q: what are your thoughts on PHO (Powershares ETF focus on water)?

Q: CLF - I shares 1-5 year laddered gov't bond

I would like to hold at least 25% of my portfolio in bonds. What is your take on this I share bond? Would you prefer another bond type of investment over this one? Thanks

Q: I am holding shares of fie for the high dividend .Are they able to maintain the dividend or are they just returning my investment?

Q: I am looking reallocate my group RRSP of approx. $40k - I was thinking to split it between a US large cap fund and something like Templeton Global. Your thoughts on where to position these funds for the next year or 2? Thanks.