Investment Q&A

Q: Hi
Question : what is the market cap a company must have to join the TSX ?
Thanks
Rick

Q: I buy a number of my international stocks on the OTC Market, since my brokerage account does not let me directly transact on exchanges outside of North America. The American Depository Receipts (ADR) for a particular company ("xxxx") have the ticker format xxxxY, whereas the "fungible" shares (i.e. for which there is somewhere, at least in principle, an actual stock certificate issued by the company) have the ticker format xxxxF.

Assuming that there is at least some liquidity for the shares of a particular company, it is almost always the ADRs (xxxxY) that have the most trading volume. However, sometimes the fungible shares (xxxxF) are slightly more liquid than the ADRs.

In terms of risk (e.g. in the event of another major financial crisis) are the ADRs more risky, i.e. do they depend on the solvency of the custodial bank in New York (e.g. BNY)? On the other hand, who actually possesses the fungible shares (xxxxF)? Is it this same custodial bank? Is there a real stock certificate somewhere?

Thanks!

Q: As we get older we are thinking of making our portfolio less volatile. Therefore, we have been thinking of eliminating cyclical stocks, such as energy, companies like Agrium. Do you think this is the best route, or would you prefer, as I think you do, hold a smaller percentage of cyclical stocks? Also, would you consider a company like Finning, which is related to the energy sector in many ways, as a cyclical stock?
thanks again for a wonderful service

Q: I have a number of stocks and would like to know where I can find
sector allocations for my stocks
Thanks

Q: In response to a previous question you recommended GSY and TCL.A as good candidates as value stocks. I note that both are near their 52 week highs. I was under the impression that a value stock would have a share price that is not doing well. I would appreciate it if you would clarify for me your criteria to identify a value stock. Thank you.

Q: I would appreciate your insight on when to exit from growth and longer term portfolios. In winning positions one has luxury to take profit according to personal inclination. Some take at 15%, some 20% to 25%.

My special concern are loosing positions. I have heard of 13 week moving average, Chandelier stop (3ATR). They make sense in a trading situations. What will your advise be to get out from 5i type Growth and Long term portfolios when the stock has tanked. Could that a specific % loss say 8% to 10%. I am interested in your criteria.

Thanking you
Shah Husain

Q: I was thinking of using this etf to give some downside protection to my portfolio. What are your thoughts on this? If you think this is okay, what % of my portfolio should I allocate to this?
Thanks

Q: American Depository Receipts
I am somewhat confused on this product. Is it simply a way of
purchasing a specific non-north American stock without having to go through a non - north American exchange? Please enlighten me. Do you value them in a diversified portfolio?

Thank You

Paul

Q: Greetings,

Regarding Management Expense Ratios and Management Fees. TD WebBroker lists both under fees and expenses for ETFs and Mutual funds and I was hoping you could help me understand my costs. Using TDB900 as an example the MER = 0.33% and the Management Fee = 0.35%. Am I paying annually 0.33 or 0.35%?

Cheers!

Q: What is the difference between a distribution and a qualified dividend

Q: If I wanted to build a $300000 balanced portfolio starting now Would you suggest jumping in the deep end or building slowly with your new recomendations

Q: Great BNN show yesterday Peter! With equity markets near all time highs, how do you think one should protect against downside risk for their portfolio (if at all)? Holding gold companies in January/February 2016 proved to be a bit of a hedge against the overall market decline and I continue to do so for this reason (amongst others). Curious to hear your view on inverse ETFs as well.

Q: Are there any independent web sites devoted to monitoring and evaluating the ETF population? Looking for something that tracks free cash flow (FCF) stability and growth of distributions, frequency of asset or index modifications, as well as risk assessment (Morningstar?).

Thanks in advance,
Larry

Q: Dear 5i Team,
Recently read that Alaris Royalty and Parkland Fuel were dropped from the S&P/TSX composite shareholder yield index. What does this index represent? The news release also mentioned the S&P/TSX composite buyback index - what is this index for? Thank you for you great service.
Regards,
Danny

Q: I am setting up a dollar cost averaging couch potato portfolio with low cost mutual funds (td e-series etc). I will be contributing money into this portfolio every month from my salary. The portfolio will consist of 25% canadian index, 30% US, 30% internatonal, 10% Emerging Market, 5% Nasdaq. My time horizon is 15 years with above average risk tolerance. The question I have is if I need to include bonds in this mix. I feel that stock will do well in the next 15 years amidst an interest rate increasing environment. I am hoping to achieve an avearge of 9% to 10% return per annum over the 15 year period. Please let us know if it is a sound plan. Thanks for the great service.

Q: I previously had brought together several accounts into one and am doing some analysis to figure where I'm at from a portfolio approach. I am looking at the sectors of Financial, Consumer, Materials, Technology, Energy, Gold, Health Care, Utilities, Real Estate, Telecommunications and Industrials. Is that the right list and what kinds of percentages (of total portfolio) are recommended for each one?
Thanks!

Q: Is it better if the shares outstanding and the float are close in their amounts.
What percentage do you prefer a ROE to be?
Thank you.

Q: I have stocks in my Trading account, but will be in Guatemala doing volunteer work for the next month. Can you suggest a safe place to "park" my trading money for a month (or more)? Something safe but that provides income would be ideal. Thank you!

Q: Looks like us financials are losing steam / as is the US currency against the Canadian $ I have some profit in US financials would you take the $ and run or wait?

Also what do you see for the US $ against the Canadian currency going fwd especially after Trumps comments today that the US $ is too strong ? - I under that this is 2 questions thanks as always for your insight

Q: Per your portfolio adjustments you are selling ADW.A. You mention that it has a low yield and is shown as 1.39%. Is this 1.39% of original purchase price or current market price. I always look at my yield return based on original price paid and not on current price. Is this the proper way of doing it.Thanks