Investment Q&A

Q: You mentioned a few weeks ago the names of great Canadian Corporate leaders. I would include in your list Gerry Swartz of Onex and Prem Watsa of Fairfax. Bob

Q: Greetings 5i,

I was reading an article on MorningStar regarding TDs recently launched ETF based "Portfolio" Mutual funds all with "low MERs" of 0.08%. I was interested in your thoughts on these funds, positives and negatives, confirmation of MERs, as well as where I would be able to find a list of each funds holding as information seems a little sparse.

(http://cawidgets.morningstar.ca/ArticleTemplate/ArticleGL.aspx?culture=en-CA&id=799062)

TDB3175
TDB3176
TDB3177
TDB3178

Cheers!

Q: Hi,

When holding various ETF's in your portfolio, should you account for the sector weighting within the ETF towards your sector allocation of your total portfolio? For example, VDY, sector weighting is tilted mostly 62% financials and 21% energy. So lets say VDY is 10% of your portfolio, would you add 6.2% of this towards financials, 2.1% energy, etc..?? I see that RY, TD, and BNS make up the top three holdings, so would you still even consider buying individual financial stocks if this allocation made up your full financial sector weight in your portfolio?

I understand that for specific sector ETF's, like ZUH that focus on healthcare or ZBK that focus on financials, you can count 100% towards that sector allocation in your portfolio. I'm just wondering if I should be doing this with those ETF's that hold more unequal sector weights within the ETF and how to account for those so I'm not too overweight in a specific sector in my portfolio. And how about those ETF's like VCN, where you have four sectors that make up 80% of the weight. Am I overthinking this?

Thanks!

Q: hello 5i:
2 questions.

I am interested in the fund above, and the question asked by Robert yesterday. One thing I can't quite understand: how is the fund generating a (greater than) 6% return. How is the fund able to do this with present interest rates? Through leverage?

Could you give me your opinion on the CEF WEC (Western Asset Premier Bond Fund), and would you consider this a viable holding in a TFSA?
thanks
Paul

Q: In a fairly diversified portfolio, I only have 2.5% in the telecom sector. I can either bring BCE up to a full position or buy a half position in Telus. I feel comfortable doing either. What would you recommend?

Q: in your answer to neil you say open text might not have the same potential as shopify or kinaxis, i own lots of all 3 ,but why do you say that.
in a software stock i wants lots of risk and loads of potential.dave

Q: Hi. I would like to add 2 to 3 stocks to the growth part of my portfolio. What US/Canadian suggestions do you have? My portfolio is well balanced so I am not too concerned about sector. Currently I have SHOP, CSU, SJ. thanks, J

Q: Hi guys, my 21 year old sons TFSA presently consists of: Crh, Kxs,Gud,shop, and Syz. We are considering adding PBh, Zcl, mx, or pho. Leaning towards PBH or ZCL. What would be your preference or is there another recommendation?
He is up over 20% on all positions and 50% on KXS. Can't thank you enough for starting 5I.

Q: I was wondering if you could add anything to my understanding of this company whose share price has stagnated over the past year. The takeover of Jarden was well received by analysts and the quarterly results afterward seemed to suggest things were progressing well. A number of analysts recommend the stock so is it just range bound at this time for no particular reason or is there something else at play?

Appreciate your insight.

Paul F.

Q: Do you PIN and Purpose Investments in general? What do you see as the main risks with PIN? Thank-you.

Q: I understand you’re not keen on the split corps and I have read all the DFN commentary, that aside what are your thoughts and do you have metrics for FFN?

Q: I was wondering what you thoughts were on Freshii vs A&W in terms of valuation metrics and which you would prefer. Thanks

Q: Over the years I have tried to compare myself to indices to determine if my portfolio performance compares favourably. Basically if it does not I always consider 'firing' myself. Your service has allowed me to increase my overall performance I believe and stay 'employed'. Came across a service (from article in National Post) regarding a free service called ARC Private Client Indices. It would appear to provide a real nice comparison indices based on my portfolio makeup. Are you aware of this and do you have any comments on it?

Q: Savaria on a nice roll of late. Dividend rate now around 2%. How does a Company in a situation like this decide how much to raise and when. What factors are involved.

Q: Dividend Reinvestment Calculator ..can you tell me where I might find one... I could not see one on the internet.. Thanks.

Q: Hello 5i team,
I have only one entry for healthcare (GUD) and was wondering if it is a good idea to add another security seeing as this sector is beaten down? If so do you have any suggestions?
Thanks,
Andrew

Q: What is your opinion on this secondary issue of 3 billion dollars by CVE, the discount look attractive, would you recommend to participate on it?

Q: Given the drop in ENGH on the Amazon news, I want to make sure I understand the relationship SHOP has to Amazon. I believe that SHOP provides software to businesses that utilize Amazon but that Amazon does not license, own or necessarily encourage people to use SHOP software. Is that correct? If so, would the risk to SHOP in this "relationship" be if Amazon decided to develop its own software (unlikely, I think) or if Amazon formally named another software partner that businesses would be better of using to deal with them?

Thanks.

Paul F.

Q: I need to add to my tech sector. Would you add ENGH after the drop today? How about DSG? Any others that you would recommend to purchase right now?

Q: I see Peter was on BNN and highlighted pbh, mx and zcl. ZCL is in the growth model, but I can't find any 5i reports on it when typing company name or symbol. Am I missing something? Thanks.