Investment Q&A

• iShares Core Canadian Short Term Bond Index ETF (XSB $27.13)
  • $27.13 Cap: $3.39B
  • View XSB Profile
  • View Questions on XSB
• iShares Core Canadian Universe Bond Index ETF (XBB $28.57)
  • $28.57 Cap: $8.87B
  • View XBB Profile
  • View Questions on XBB
• iShares Core U.S. Aggregate Bond ETF (AGG $100.22)
  • $100.22 Cap: $134.89B
  • View AGG Profile
  • View Questions on AGG
• iShares 1-3 Year Treasury Bond ETF (SHY $82.85)
  • $82.85 Cap: $23.77B
  • View SHY Profile
  • View Questions on SHY

Q: Good afternoon 5i staff
To a question concerning the possibility of inflation and David Rosenberg’s reaction to that, you said:

For Canada, we like XSB, and for the US we like SHY.

I hope I am not quoting you out of context here. But, I was wondering whether you were saying that ´supposing ‘ an inflationary environment, we would choose these. Or, whether you meant that we would be facing an inflationary environment and these would be the best choice. In other words, in your opinion, which would be the best choice for today for a permanent allotment to bond funds, short term or longer, such as xsb and agg.?
Thanks

Upvote 6

Read Answer Asked by joseph on November 22, 2024

• iShares Global Monthly Dividend Index ETF (CAD-Hedged) (CYH $23.82)
  • $23.82 P/E (TTM): 15.18X Cap: $164M
  • View CYH Profile
  • View Questions on CYH

Q: Greetings 5i,
Are dividends from this ETF eligible for the CDN dividend tax credit?

I have flipped through the prospectus and other available reading material on the ishares website and can't find the answer to this seemingly simple question.
Thank you as always
SP

Upvote 2

Read Answer Asked by Steve on November 22, 2024

• Vanguard Balanced ETF Portfolio (VBAL $36.73)
  • $36.73 P/E (TTM): 1.06X Cap: $4.17B
  • View VBAL Profile
  • View Questions on VBAL
• iShares Core Balanced ETF Portfolio (XBAL $33.24)
  • $33.24 P/E (TTM): 4.68X Cap: $2.47B
  • View XBAL Profile
  • View Questions on XBAL

Q: For my TFSA, I am hesitating between VBAL and XBAL. Which one do you prefer? Because of the U.S. and international component of these ETFs, will there be withholding taxes in a TFSA or other tax considerations we should know about? Thank you for your guidance

Upvote 2

Read Answer Asked by Gervais on November 21, 2024

• iShares S&P/TSX Global Base Metals Index ETF (XBM $25.67)
  • $25.67 P/E (TTM): 0.49X Cap: $287M
  • View XBM Profile
  • View Questions on XBM

Q: If I wanted to invest in a Base Metals etf which would you recommend?
Thanks

Upvote 2

Read Answer Asked by Helen on November 21, 2024

• Purpose High Interest Savings Fund (PSA $50.04)
  • $50.04 Cap: $3.28B
  • View PSA Profile
  • View Questions on PSA
• Global X High Interest Savings ETF (CASH $50.02)
  • $50.02 Cap: $6.76B
  • View CASH Profile
  • View Questions on CASH
• Global X 0-3 Month T-Bill ETF (CBIL $50.05)
  • $50.05 Cap: $1.57B
  • View CBIL Profile
  • View Questions on CBIL
• High Interest Savings Account ETF (HISA)
  • View HISA Profile
  • View Questions on HISA

Q: I am concerned about the height of the stock markets and am in the process of reducing my equity holdings. If there is a correction or bear market next year, then I would want to be able to invest again at some point.

With the cash that becomes available from the sale of equities, what would you recommend as an investment? I am looking for something that is extremely safe, can be sold at any time (which eliminates a GIC for consideration) and gives me a bit of yield/gain. Are there any ETFs which fit this bill?

Thank you for this wonderful service.

Upvote 12

Read Answer Asked by Dale on November 21, 2024

• Vanguard Short-Term Government Bond ETF (VGSH $58.76)
  • $58.76 Cap: $22.41B
  • View VGSH Profile
  • View Questions on VGSH

Q: For short term treasuries in a USD RRSP, is VGSH a good choice, or are there better ?

Upvote 6

Read Answer Asked by James on November 21, 2024

• iShares 20+ Year Treasury Bond BuyWrite Strategy ETF (TLTW $23.34)
  • $23.34 Cap: $1.52B
  • View TLTW Profile
  • View Questions on TLTW

Q: What are your thoughts on this one for a purchase now. Interested in the dividend but want capital protection as well. I don't mind if Dividend fluctuates but would like it above 6%. Would you be a buyer at this time ?

Upvote 2

Read Answer Asked by Randy on November 21, 2024

• JPMorgan Equity Premium Income ETF (JEPI $56.37)
  • $56.37 P/E (TTM): 24.94X Cap: $40.67B
  • View JEPI Profile
  • View Questions on JEPI
• JPMorgan Nasdaq Equity Premium Income ETF (JEPQ $57.52)
  • $57.52 P/E (TTM): 34.46X Cap: $26.78B
  • View JEPQ Profile
  • View Questions on JEPQ
• JPMorgan US Equity Premium Income Active ETF (JEPI $25.07)
  • $25.07 P/E (TTM): 25.07X Cap: $214M
  • View JEPI Profile
  • View Questions on JEPI
• JPMorgan Nasdaq Equity Premium Income Active ETF (JEPQ $27.53)
  • $27.53 P/E (TTM): 32.9X Cap: $115M
  • View JEPQ Profile
  • View Questions on JEPQ

Q: The US versions of these ETFs have high yields. I am selling some of my more volatile RRSP holdings and want to move the funds into ETFs that add stability and a return of 8-10% with dividend/growth. Are these ETF's considered relatively stable. and is there a point that they should be considered less stable, for example, if interest rates rise. The Cdn equiv show no dividend. Is there a reason for this?

Upvote 4

Read Answer Asked by Kim on November 21, 2024

• SPDR S&P 500 ETF Trust (SPY $669.06)
  • $669.06 P/E (TTM): 27.29X Cap: $681.32B
  • View SPY Profile
  • View Questions on SPY
• INVESCO QQQ Trust (QQQ $607.50)
  • $607.50 P/E (TTM): 36.04X Cap: $399.32B
  • View QQQ Profile
  • View Questions on QQQ
• Vanguard Total International Stock (VXUS $74.05)
  • $74.05 P/E (TTM): 0.75X Cap: $82.30B
  • View VXUS Profile
  • View Questions on VXUS
• Vanguard FTSE All-World ex-US ETF (VEU $72.16)
  • $72.16 Cap: $45.85B
  • View VEU Profile
  • View Questions on VEU
• Berkshire Hathaway Inc. (BRK.B $497.78)
  • $497.78 P/E (TTM): 16.75X Cap: $1.06T
  • View BRK.B Profile
  • View Questions on BRK.B

Q: My portfolio is now heavily weighted to the US.

Can you recommend an ETF or 2 that would compliment my existing investments?

Thanks
Mark

Upvote 3

Read Answer Asked by Mark on November 21, 2024

• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $39.37)
  • $39.37 P/E (TTM): 14.83X Cap: $1.03B
  • View CDZ Profile
  • View Questions on CDZ
• Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY $58.26)
  • $58.26 P/E (TTM): 5.96X Cap: $4.96B
  • View VDY Profile
  • View Questions on VDY
• CI Canada Quality Dividend Growth Index ETF (DGRC $45.24)
  • $45.24 P/E (TTM): 14.08X Cap: $755M
  • View DGRC Profile
  • View Questions on DGRC

Q: I am nearing retirement and planning to rebalance my taxable portfolio towards Canadian dividend stocks and ETFs, so that I can live off CPP and eligible dividends in retirement. What are your favorite Canadian ETFs where all distributions are treated as eligible dividends? You recommended CDZ many times, is it still your favorite?

Upvote 10

Read Answer Asked by Tim on November 20, 2024

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 18.8X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• iShares S&P/TSX Capped Utilities Index ETF (XUT $33.34)
  • $33.34 P/E (TTM): 21.18X Cap: $310M
  • View XUT Profile
  • View Questions on XUT
• Hydro One Limited (H $51.68)
  • $51.68 P/E (TTM): 24.86X Cap: $31.25B
  • View H Profile
  • View Questions on H
• Utilities Select Sector SPDR ETF (XLU $89.22)
  • $89.22 P/E (TTM): 19.9X Cap: $22.40B
  • View XLU Profile
  • View Questions on XLU

Q: Planning to consolidate Utility sector in RIF. Current holdings include: ZWU, H, XUT, XLU. Which one would you keep ? Thank you

Upvote 6

Read Answer Asked by Hali on November 20, 2024

• iShares S&P GSCI Commodity-Indexed Trust (GSG $23.10)
  • $23.10 Cap: $1.08B
  • View GSG Profile
  • View Questions on GSG

Q: What is the outlook for commodities? Is there a one-stop diversified commodity ETF in CAD or USD? If not can you suggest a small basket of ETFs that would cover this asset class? Thank-you.

Upvote 1

Read Answer Asked by Alex on November 20, 2024

• Global X S&P 500 Index Corporate Class ETF (HXS $97.09)
  • $97.09 Cap: $5.29B
  • View HXS Profile
  • View Questions on HXS
• Global X Intl Developed Markets Equity Index Corporate Class ETF (HXDM $57.79)
  • $57.79 Cap: $900M
  • View HXDM Profile
  • View Questions on HXDM
• Global X Emerging Markets Equity Index Corporate Class ETF (HXEM $47.45)
  • $47.45 Cap: $124M
  • View HXEM Profile
  • View Questions on HXEM

Q: This is a follow-up question to one I asked a few days ago regarding increasing Int’l exposure to my TFSA. Would the structure of the Global X Corporate class ETFs, eg. HXDM, HXS, HXEM, eliminate the drag of withholding taxes on the portfolio?

Upvote 3

Read Answer Asked by Bruce on November 20, 2024

• Invesco S&P 500 Low Volatility ETF (SPLV $71.35)
  • $71.35 P/E (TTM): 23.62X Cap: $7.26B
  • View SPLV Profile
  • View Questions on SPLV
• CI High Interest Savings ETF (CSAV $50.04)
  • $50.04 P/E (TTM): 34.16X Cap: $5.43B
  • View CSAV Profile
  • View Questions on CSAV
• JPMorgan Ultra-Short Income ETF (JPST $50.63)
  • $50.63 P/E (TTM): 17.81X Cap: $34.18B
  • View JPST Profile
  • View Questions on JPST
• Global X Cash Maximizer Corporate Class ETF (HSAV $116.28)
  • $116.28 Cap: $1.90B
  • View HSAV Profile
  • View Questions on HSAV
• Global X High Interest Savings ETF (CASH $50.02)
  • $50.02 Cap: $6.76B
  • View CASH Profile
  • View Questions on CASH
• BMO Money Market Fund (ZMMK $49.86)
  • $49.86 Cap: $5.13B
  • View ZMMK Profile
  • View Questions on ZMMK
• Global X 0-3 Month T-Bill ETF (CBIL $50.05)
  • $50.05 Cap: $1.57B
  • View CBIL Profile
  • View Questions on CBIL

Q: Looking to park cash for 2 to 3 years in a low volatility etf with a decent distribution. I am looking at above mentioned etf and would appreciate your analysis or do you have other recommendations? Thanx.

Upvote 4

Read Answer Asked by Steve on November 20, 2024

• BMO MSCI Emerging Markets Index ETF (ZEM $27.55)
  • $27.55 P/E (TTM): 6.82X Cap: $1.85B
  • View ZEM Profile
  • View Questions on ZEM
• iShares Core MSCI EAFE IMI Index ETF (XEF $45.95)
  • $45.95 P/E (TTM): 12.7X Cap: $15.50B
  • View XEF Profile
  • View Questions on XEF
• iShares Core S&P U.S. Total Market Index ETF (XUU $69.02)
  • $69.02 P/E (TTM): 26.35X Cap: $4.01B
  • View XUU Profile
  • View Questions on XUU
• iShares Core S&P/TSX Capped Composite Index ETF (XIC $47.62)
  • $47.62 P/E (TTM): 20.73X Cap: $19.52B
  • View XIC Profile
  • View Questions on XIC

Q: I’m wondering which type of account would be best for these ETFs. I assume they would not all be best in the same account. The choices of accounts would be personal taxable, RRSP, TFSA, and corporate.

Thanks.

Upvote 1

Read Answer Asked by Federico on November 20, 2024

• BMO Covered Call Canadian Banks ETF (ZWB $23.27)
  • $23.27 P/E (TTM): 11.56X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call US Banks ETF (ZWK $25.40)
  • $25.40 P/E (TTM): 12.57X Cap: $319M
  • View ZWK Profile
  • View Questions on ZWK

Q: Which would you suggest is the better to hold for the long term ZWB or ZWK? Or should I hold both?

Upvote 5

Read Answer Asked by John on November 20, 2024

• iShares Core S&P 500 Index ETF (XUS $58.49)
  • $58.49 P/E (TTM): 27.06X Cap: $10.24B
  • View XUS Profile
  • View Questions on XUS
• iShares Core S&P U.S. Total Market Index ETF (XUU $69.02)
  • $69.02 P/E (TTM): 26.35X Cap: $4.01B
  • View XUU Profile
  • View Questions on XUU

Q: Which one do you prefer? Thanks

Upvote 1

Read Answer Asked by David M. on November 20, 2024

• Vanguard Total World Stock ETF (VT $138.49)
  • $138.49 P/E (TTM): 21.84X Cap: $40.99B
  • View VT Profile
  • View Questions on VT

Q: You suggested VBAL as a good all in one ETF. Thank you for that.

You noted that “It covers the US, Canada and global equities, and also has 40% bond exposure”, which is great, except that I don’t want any bond exposures in the ETF. Do you have any alternatives without any fixed income included?

Thanks again.

Upvote 1

Read Answer Asked by Federico on November 20, 2024

• iShares Russell 2000 Growth ETF (IWO $319.45)
  • $319.45 P/E (TTM): 22.34X Cap: $12.86B
  • View IWO Profile
  • View Questions on IWO
• iShares Core S&P Mid-Cap ETF (IJH $64.70)
  • $64.70 P/E (TTM): 19.45X Cap: $98.43B
  • View IJH Profile
  • View Questions on IJH
• BMO S&P US Mid Cap Index ETF (ZMID $48.40)
  • $48.40 P/E (TTM): 20.07X Cap: $277M
  • View ZMID Profile
  • View Questions on ZMID

Q: What are your 3 favourite U.S. small and mid cap etfs?
Philip

Upvote 4

Read Answer Asked by Philip on November 20, 2024

• BMO MSCI USA High Quality Index ETF (ZUQ $95.70)
  • $95.70 P/E (TTM): 29.79X Cap: $1.21B
  • View ZUQ Profile
  • View Questions on ZUQ

Q: Back in 2020, I started a position in ZUQ BMO US High Quality ETF. I still have a copy from your ETF & Mutual Fund Update from 2020/21 about your ETF Madness Contest. XAW was the winner and it narrowly beat ZUQ in the semi finals. In it you said, “Overall, we would be comfortable with ZUQ taking an average investor’s entire US equity portfolio.” ZUQ beat ZSP in 5 year returns according to BMO’s ETF Comparison Tool, ZUQ 17.7% average return vs ZSP 16.2% average return. I’m building my portfolio and soon will build up ZUQ to a 50% position. Do you still feel that this ETF would still make you comfortable at a 50% position in an average investor’s entire US portfolio?

Upvote 4

Read Answer Asked by Todd on November 20, 2024