Investment Q&A

Q: I would like to purchase some protection against market volatility but am unsure of the best way to do this. VXX and HUV are a play on the futures but if I am correct there is a time/price decay involved in the price as well. Is there another way to to protect against market volatility other than holding cash? Thanks

Kenn

Q: Good Morning
In my portfolio review AUG/16 you suggested the following for my fixed income portion (50%) of my rrif- xhy 5.6%, Clf 5.7%, MDL 240 14.1%, XSH 12.3%, ZAG 12.1%. Reading the last mutual fund/etf update I am wondering whether you would make any suggestions as steady interest rate rise seems more of a certainty than at that time. A conservative income oriented portfolio.
Tom

Q: Could you please explain the difference between a bond ETF (like XSB or CBO) and buying a bond portfolio in a mutual fund.
Are the ETFs safe for capital retention or do they act more like equities?
Thanks

Q: What books/web sites/resources do you recommend that deals with Estate planning for Canadians, ON resident. Something that is easy to decipher with the emphasis on transition of wealth to adult children in a tax advantaged manner?
Unfortunately most of the advisors/banks seem to interested in selling Universal/Whole Life insurance or asking to make their organisations be the Trustee/co-executor. Prefer that is something conflict free like 5i !!
Thanks in advance.

Q: For a retired investor with 2/3 of his portfolio in an diversified dividend equity portfolio and with 500 k to invest in safer income producing investments and just purchased 73k of CPD, 60k of ZPR, 40k of XHY, leaving 327k still to invest, would you add to these positions or could you suggest other places to invest for income. Would you wait till after NAFTA is decided and then invest. Thanks for your opinion.

w

Q: I own about 16% utilities - all have been falling quite a bit recently. Based on my limited knowledge of technicals, it seems that they are all at their support levels (except TRP which appears to be below that level). Is it time to buy into these utility stocks based on technicals, or does it seem that they are going to fall some more based on interest rate hike fears, so it would be best to lighten up on utilities? or just do nothing?

Q: Is this a good opportunity to add to these types of names or do you see more weakness coming with interest rate fears lingering?

Q: Hi, I keep reading (Bill Gross and others) that bond yields have breached long term resistance levels and that we are entering a bear market in bonds. Meantime utilities and interest rate sensitive stocks are being hammered. Could you provide your view how much interest rates might rise further from here and to what extent utility stocks and others are discounting future rate hikes. Is this a potentially good buying opportunity? Thanks!

Q: I feel like I'm consulting an oracle here but I am wondering what your thoughts are on an impending correction. My concern is with respect to the amount of people chasing up tech and marijuana stocks especially. Everything has risen so much in the last 6-12 months that I can't help but think we are over due for a pullback. Would it be wise to sit on the sidelines and wait? I hate to miss out on the party but I'd rather lose a bit of upside here and be able to take advantage of a possible major pullback than be the last one out the door after the party is over. Thanks in advance.

Q: I was looking at an ETF - it's cost info is below.
Does this mean I pay a total of .80%, or do I pay .65% plus .80% (total of 1.45%).
Thanks.

MANAGEMENT EXPENSE RATIO (MER)
0.80%
MANAGEMENT FEE
0.65

Q: Hello Peter and team,
Ishares and Vanguard both have world Ex Canada ETFs that are 50% U.S.and 50% everything else. Is there an advantage to owning US and International ETFS separately that can be rebalanced, or is a product like this a good one as there are less fees incurred to buy and sell? Do the managers of the EX Canada ETFs rebalance their holdings? Thank you.

Q: Hello,

If Cannibis and Blockchain companies were to go through a large correction, what would your view be on how it would effect the rest of the tsx?

Regards,

Robert

Q: Hi, thanks for the great services. where do you find the top holding of a ETF?

Q: Hi 5i Team,

In the prospectus for the Horizons ROBO ETF, under Redemption of Units, it says:

"In addition to the ability to sell Units of the ETF on the TSX, Unitholders of the ETF may redeem Units for cash at a redemption price per Unit equal to 95% of the closing price for the Units on the TSX on the effective day of the redemption, where the Units being redeemed are not equal to a PNU or a multiple PNU.
Because Unitholders will generally be able to sell Units at the market price on the TSX through a registered broker or dealer, subject only to customary brokerage commissions, Unitholders are advised to consult their brokers, dealers or investment advisors before redeeming their Units for cash."

I find this confusing, and want to understand the redemption process before buying any units.

I don't understand why I could redeem units for cash and get only 95% of the closing price on that day. Why not 100%?

In the second paragraph it states that although I can sell units at the market price on the TSX that I should consult my broker before redeeming units for cash. Isn't selling the units at market price on the TSX giving me 100% cash? I don't understand why I need to advise my broker when I want to sell. Can't I just place the order myself? Can you explain that.

Paul

Q: When purchasing a US stock (FB as an example) which account should it be purchased in? My US account where the cdn money is transferred to us or vice versa

Scott

Q: I am looking for income and was wondering what the risks are in covered call ETFs. I am looking at ZWB and ZWU. Would they fare better in a market correction than pure ultility or bank stock ETFs?

Q: I'm trying to understand the connection between the ratio of the US$ to Japenese Yen and the gold price. Can you help?

Q: I plan to shuffle my RRSP to include your Balanced Equity Portfolio and the three ETFs above. Would you recommend any exposure to bonds through a fourth ETF?

Q: In the absence of fraud, if a company is trading under tangible book value and it goes bankrupt should the common equity holder get the tangible book value of his/her shares? I say this because I have been in this position before and got nothing with no explanation provided by my broker. As it was a small position and I am not a big player with armies of lawyers I couldn't take it further.

Q: You have mentioned in the past that KXS has lots of cash. One assumes this means "in relation to" some other factor, as other companies have larger cash holdings. Please outline what you are using as a base for this ratio so I can use this metric when evaluating my other holdings (mostly those recommended by 5i).