Investment Q&A

Q: To everyone at 5i! I would like to take a minute to sincerely thank you for everything you have done to help me along with my investment career. I have been with you now since Jan.10, 2015 and am about ready to renew my membership next week. Your service has been invaluable to me and I have learned so much! With your help and advice my portfolio has grown substantially . During this volatile market time, your guidance has kept me grounded and has kept me focused on my investment objectives. Thank you again!!! Kind Regards, Tamara

Q: Just a thankyou note. Your team is amazing. I asked a question today, and it was answered today. Thankyou again

Q: XIT is a capped technology ETF. How often is the ETF holdings rebalanced ? With the recent downfall of SHOP, Yahoo Finance still shows SHOP at 27.7% of XIT but Morningstar at 14.1%. Who is right ? Good day.

Q: I have friends that have sold mutual funds and wondered why the final proceeds seem so much less than they expected based on recent monthly statement values (i.e. they've sold a day after the their last statement in an up market). Why do mutual funds valuations seem a bit contrived? Are there hidden fees deducted from the sale proceeds in general? If so, what % are they typically?

Q: Just a comment: well done with your analysis of the factors behind the inflation piece the other day. I subscribe to both the Economist and the Financial Times and I can say that an analysis with that quality is very rare!

Q: 2 Questions related to Canadian stocks paying dividends in USD:
(1) I want more US cash and plan to have Questrade journal over the above CA stocks to the US equivalent in a TFSA. Is there any special considerations here when doing this? Best to do this on a day when the Canadian dollar is stronger?
(2) In a margin account, Questrade journaled over AQN:CA to AQN:US on February 3/22. I have held AQN:CA for more than 1 year and sold all of AQN:US today at a small loss. Will CRA see the later loss as a superficial loss, because the US listed stock was held for less than 30 days? Thanks!

Q: IF I TRANSFER CASH FROM THE CANADIAN T.F.S.A. TO THE US T..F.S.A., WOULD IT BE AN EXTRA CONTRIBUTION OR JUST PART OF THE WHOLE T.F.S.A.? OF COURSE, I WOULD HAVE TO PAY CONVERSION FEES.

Q: You've recently commented that you would not necessarily Add to a current position in GSY, but would be comfortable Starting a position. Could you please explain the logic behind this strategy ? Thanks for your help, as always !

Q: Hi 5i Team,

I would like to ask about the GOOG fractional shares traded on the NEO exchange.

Do you views these shares any differently than their underlying share?

How they would be treated in light of the upcoming split of the common shares?

Are these types of fractional shares subject to withholding taxes if held inside a TFSA?

Thanks for the great service!

Colin

Q: Hi, Thanks for all the great advice. What would happen if an ETF or mutual fund (or the organization) becomes insolvent? Would the investor's holdings segregated in some way? Would it be safer to hold the actual securities in a CIPF covered brokerage account rather than an ETF of stocks or bonds?

Q: After watching the PMO office enact the EMA and then outline that financial institutions could arbitrarily lock you out of your accounts sent chills down my spine. Regardless of whether you agree with the protests going on or not, I find it worrisome that our government can just dictate that. This seems like a problem that could arise out of the blue and should have a plan of defense from it. What if any advice would you have in this regards?

Q: Cash that is held on a brokers platform like Wealthsimple, is it insured with CIPF like it would be if it was an invested stock, or is it handled differently in case of broker failure/bankruptcy ?

Q: I am used to thinking of dividend stocks in terms of 1. yield relative to historical yield, 2. payout ratio, 3. years of consistent dividend payout without cut as the major deciding factors what would be equivalent factors be to consider in the tech sector stocks.
such as Google, apple, Microsoft, please provide an analysis in terms of what to consider that would influence buying / ranking one over the other.

thanks

Ernie

Q: Hi 5i Team. I am just saying thanks for your advice over the years. Diversification in point. I once subscribed to an online investment advice site by G.P. called IWB. It has some very good portfolios, but I think one good lesson on diversification will be in one IWB portfolio i.e., the Growth Portfolio where it often boasts of huge double digit returns since inception but never on an annual basis. Its Growth portfolio has 8 stocks with about 51% Tech and 38% in just two i.e., SHOP (23.5%) and ARKK (14.5%) as of Feb 2021. Yikes. I stopped keeping track about 6-months ago but an update is due this month (maybe in the G&M). It will be interesting to see if diversification is mentioned in the next update. In fairness, the IWB does warn of the risk of investing in the growth portfolio, but it seems your growth portfolio is much more diversified and reporting annual performance is very helpful. Thanks again. Please publish if you think useful.

Q: Thoughts abut John De Goey's 'Next drop in the stock market will be a doozy' article today and its underlying premises?

My thanks.

Q: What do you suggest using as a benchmark for sector allocations? I have been looking at global market sector exposures using the iShares MSCI World ETF (XWD). I also saw the Vanguard Total World Stock ETF (VT), which I believe has more small-cap exposure than MSCI World. If the global market is a good base to use, do you see any reason to deviate from these exposures at the moment?

I assume I shouldn't look at regional exposures the same way, the global market is heavily weighted toward US (60-70%). Would regional exposure for something like VGRO (equity only - US 43% / Canada 30% / International Developed 20% / Emerging 7%) be a good benchmark?

Q: I would like a little help with my stock portfolio construction. I'm looking for guidelines for how much I should be putting into each of the 11 sectors such as banking, telecom, utilities, industrial, technology etc. including REITs. Can you give me approximations for the percentages that go into each sector for a moderate equity portfolio. Please include approximations for the aggressive and conservative portfolio too.

Q: If you work for a company and you have restrictions on when you can buy and sell a stock. There are only certain times a year you are allowed to buy and sell. For example lets assume any one of those in the top ten holdings of HHL.

My question is can you buy and sell HHL during those restricted periods?

Thanks Jimmy

Q: how can i tell how many credits i have left? Do they roll over or is it use em or lose em

Q: Which of the 5i portfolio companies have had the highest level of insider buying recently?
Thanks