Investment Q&A

Q: This question relates to income tax….

Is tax deducted from dividends paid to this CDN ETF held in a TFSA ?
(listed in Canada, holding European stocks)

Would tax be deducted from a similar CDN ETF holding US stocks?

Is a TFSA the best place to place EBNK ?

Q: RSP is the equal weight S&P 500 ETF available from US exhange with an MER of 0.2%. IMO this MER seems high since the the normal S&P 500 ETF is .03%. Do you know of any similar alternatives at more competitive MER's closer to .03%? Many thanks.

Q: Hello,
For international exposure, I was thinking of buying equal amounts of Vanguard VEQT, and Bmo ZDI or should i diversify and buy equal amounts of the two plus the Manulife IDIV-B international dividend etf . These 2 or 3 three (based on your view) would be in addition to the US ETF , VUN on toronto and XIU on toronto ..Your comments would be appreciated .

Q: I own both and just wonder if both SIL and SVM are needed? I would sell one to buy CCO.

Thanks

Q: I have around 35% cash to deploy in my TFSA, with a long term time frame in mind. I currently have positions in XIC (16%) and VFV (10%). Looking to add and diversify with another 2-3 ETF's. Could you list a few suggestions?

Q: This is a follow-up question regarding XIC/XIU. In your response you said that you preferred XIC over XIU because it is more diversified. This seems to be at odds with the portfolios outlined in the ETF publication where XIU is the preferred option. Somewhat confused. Could you provide some rationale please. Thanks

Q: is there an equal weight S&P 500 ETF that can be bought in CAD (but not hedged) and does not pay a dividend?

Q: Please see below some recent commentary from The Economist. Can you please provide your thoughts? Could you also please suggest one or two US listed ETFs that fit the bill and ideally have worldwide coverage?

***

From: How to Hedge a Bubble, AI Edition

“Some of the most effective hedging strategies the Goldman analysts found fell into the third category: combinations of stocks and non-bond diversifiers. In fact, the best diversifiers were mostly filtered baskets of stocks, such as the S&P 500 “low volatility” subindex, which includes the 100 least volatile stocks in the main index. A 50/50 split between this and the S&P 500 would, from 1996 to 2002, have generated nearly twice the annualised excess returns (over cash) of the S&P 500 index alone. So would a similar split with the S&P 500 “dividend aristocrats” index, which includes only companies that have increased their dividends every year for the past 25. Diversifying into “quality” stocks (with high returns on equity, stable earnings and low net debt) would have brought similar returns.
Today, the idea that the best way to hedge equity risk is with equities feels unsatisfying. Considering the alternatives, though, it might just be the best shareholders can do.”

Q: Afternoon Troops. I own several pipelines, telecom and utilities stocks. I also own a decent sized position in ZWU. Is it worthwhile to consider rolling everything in the ZWU or is there an advantage in holding both the ETF and the individual stocks? Cheers.

Q: What are your favorite markets outside of the US to invest in today.I am looking for three or four ETFs to hold for the next 5-10 years for international diversification.

Thanks for the excellent service that you provide for the small investor!
Have a great day!!!

Q: Can you give me the pros/cons of adding any of these to my TFSA. If so, which one(s) would be best if the goal is somewhat secure dividend yield.

Q: would it be duplication to own both ZDV and CDZ in the same unregistered account? should I go with the highest yielding one? I note that CDZ holds more financial, could that be a drawback going down the road?

Q: These ETFs advertise on their website annualized yields of between 10.5% and 11.7% which seems very attractive using covered calls and leverage at a management fee of .65%. Do the covered calls generate that much income to increase the yield as well as the leverage? Also does the yield include a significant return of capital?

Thanks for your great service!!

Q: Hi 5i.

Thank your for this service.

I am looking an re-balanicng my etf portfolio for my kids.

Would you think these ETF and allocations are ok for 20 years for my kids

Zag 5%
QQC.F 15%
VDY 15%
VIU 10%
VEE 5%
VFV 40%
XFN 10%

Total 100%


Thanks for your guidance.

Q: Hi,

I have all of my international equity in XEF with a small amount of VEE. I noticed that IDV has performed extremely well this past year and better than XEF. Can you please explain why?

And are the two different enough that it would make sense to own both or is this too much diversification with both being broad market ETFs?

thanks

Q: Have an RRSP currently holding 2 bank positions (BMO and NA) that represent 11% of the portfolio Also hold XIU and XIC that total 15 percent of the portfolio and CDZ that is roughly 10 % of the portfolio.
Thinking of adding BNS or selling the two banks and buying ZEB. Which is better option given the other ETF’s ?What percentage holding in the banks would be appropriate?
Also should portfolio hold both XIU and XIC or should they be combined into one of the two. And if so how does this affect the direct holding in the banks? Perhaps not needed at all? Would appreciate your comments.Thanks.

Q: To balance my portfolio what bond etfs and other fixed income would you recommend currently, give CAD And US options?
I have accumulated quite a lot of USD from good returns and I am seeking to broaden my exposure to non US stocks (e.g. Europe) are you okay with buying the US equivalent ETFs or do you recommend converting back into CAD?

Q: Could you give me your opinion on which you prefer out of this list ? If one was to combine 3 or 4 of these what would be a good combination ? You may take more than 1 credit if you wish.

Q: Own this ETF. Based on its prospects for next 1-2 years would you continue to hold or is it a sell? Could you provide some rationale for your assessment? Thanks.

Q: A couple of days ago I asked a question about what ETFs you like that focus on industrial, manufacturing in Canada, USA and outside North America. As I noted I am looking for funds that are in Canadian dollars [ hedged or non hedged ]. You responded with ZIN, XLI, EUAD, & EXI. Except for ZIN these are in USD. What do you suggest in Canadian dollars.

Thank you

Paul