Investment Q&A

Q: Do you have a couple of recommendations for safe ETFs that would be alternatives to money market mutual funds for Canadian funds? Thanks

Q: If interest rates are poised to come down, do you see an opportunity for some short to medium term gains with bonds? If so, would the sweet spot be with short, medium, or long term bonds? Are there any bond ETFs that you could suggest?

Q: I know you are not a fan of covered call ETF's and I know why. I have used some of these short term for yield when I feel the underlying securities are fully valued and I am just looking for yield. My question is on a yield of say 8% where the underlying dividend is say 4% and the premium is 4% who keeps giving up this premium? There is a lot of money in these covered call ETF's now and I don't know who can keep losing money on covered calls to provide this income premium.

Q: My healthcare sector is very low. I will buying for within my TFSA account and wonder if the ETF XHC would be good ? I can also buy 3 US healthcare companies as I would have enough funds to do so. What would be the best 3 US healthcare companies you would buy if this is preferred over the EFT?

Thanks

Q: Good morning,


I am not crystal clear on the most tax efficient account to hold each of the above listed ETFs and before moving any of them to another type of account, I would very much appreciate your guidance on the most tax efficient type of account to hold each of the above listed ETFs.

The above listed ETFs are all held in our family Registered (RRSP/TFSA/RESP) and Non-Registered accounts.

Thank you and I'll await your sage advice.

Q: I understand this is a new ETF issued by TD Asset Management. There is a little information on its website. I am interested in it as a short term cash management option. I could not determine the yield. If you look at the current holdings, it states over 90% is invested in other than Canada. In its top 10 it holds a number of Trusts and when you look into these they represent a range of money market investment options including car loans, credit card debt, etc. Though it states the risk is low, its holdings would seem to suggest otherwise. Firstly, can you compare TCSH yield with that of GICs or HISAs. Further, do you have an opinion of this ETF as a place to park money. If you prefer other like ETFs would you also state how you would rank them. Thank you.

Q: Hello Peter,
I know you have answered this about Topicus special dividend. I find it odd that in the early stages of the company's existence , it is paying out a special dividend. Could this be a sign that the company sees little appetite for acquiring companies and will focus on organic growth? What is a good etf that excludes the magnificent 7 , SPY minus magnificent 7.. Appreciate it and thanks for the service.

Q: HSAV returned around 5% in the last year, if interest rates going forward do the inverse of last year, is it safe to assume the return of HSAV will also?

Q: Hi there,

What’s a Swap ETF? Seems like Horizons has some of them. Apparently they are very tax efficient in non-registered accounts and have higher than average yields?

What do you think?

Ok thanks!

Q: I have some US cash I want to park but do not want to be tied into a term deposit. I have read recently about cash management etfs. Can you recommend these and if yes then which ones? What yield would one expect? David

Q: I would appreciate your opinion on the use of covered call ETF's for income oriented investors. There seems to be a lot of advocates for this Passive Income Investing strategy for the higher than normal yields being generated but I just wonder, when something seems too good to be true, it often is. Maybe you have answered or have an opinion elsewhere. Is your view the same in registered/non-registered accounts.

Q: I currently hold CDZ in my Cdn dollar RRIF, however it appears that the distributions are dripped. Is there a better alternative with same exposure that pays out the distributions, as I'd prefer the cash
Thank you for all your assistance

Q: Some time back, you mentioned a cash ETF that does not ay a distribution until the position is sold. Do you have the ticker for this one? Would they payments eventually be taxed as capital gains or interest income

Q: Want to simplify my RIF investing as I am almost 80. Can you recommend several etfs that provide an easier and more comprehensive approach; I have a number of dividend holdings but I would like to broaden my exposure to international markets. Thank you.

Q: I am retired and looking to park some cash. TCSH and MCAD appears to be another type of ETF being offered around fixed income. These ETFs along with ETFs like PSA and CASH seem to be a good place to park some cash for a while. What would your opinion be on the safety of either type of ETF and any advantages or disadvantages of either class of ETF?


Ken

Q: Hello 5i researchers,

I bought this ARKK ETF during the pandemic time ARKK's hype days. As of today, many stocks recovered from 2023 lows, but ARKK. I am kind of losing patience, especially watching their daily trade information they published, keeping buying losers and selling winners. May I have your view on this ETF? Hold or move on? Thank you.

Q: All different holdings, but what would be your order of preference (based on expected total return) with the next 12 months in mind. Thanks as always, great service.

Q: I am interested in buying some mid- to small-cap stocks. I am tracking some of the ones you mentioned and am considering them.

For non-experts though, it seems like it would be better to go the ETF route on such companies. Do you agree and can you recommend a couple of options in CAD and USD.

Q: Hello 5i,
I would like to buy HSAV.ca for a 1 year hold but I’m concerned about the erosion of the .62% premium and
price in a declining rate environment. I appreciate your thoughts. Would you still consider it a buy. It seems to be the only tax efficient HSIA available in Canada so perhaps it will always maintain its demand. Thank you.
Brad

Q: What are your thoughts on the portfolio diversification and growth potential of these securities? Thx!