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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What 3 Canadian and U.S.A. large cap companies are great buys at their current level ?
Buying for core and long term holdings.
Read Answer Asked by Lawrence on June 01, 2022
Q: I am thinking of setting up my portfolio with 25% positions in XIU, ZLB, XSP, ZLU. I am trying to avoid bonds and International stocks as they always seem to be a drag on the portfolio. With this arrangement I feel I have a better chance for returns closer to the market. With the low volatility ETF’s, I am hoping my positions would cause less volatility and would smooth out returns as the holdings in each are well correlated. Would you consider this plan to be too risky or would you have any other commentary or suggestions?
Read Answer Asked by Myron on June 01, 2022
Q: Peter and Co,
The UK has introduced a ‘windfall tax’ of 25% on energy company’s profits. The bite of this tax can be substantially reduced on profits that are reinvested in more fossil fuel extraction. While this reduced tax rate might result in greater investment in oil/gas extraction and, therefore, production and profits it would appear that in subsequent years companies using reinvestment to reduce current taxes will have to make greater and greater reinvestments to keep ahead of the 25% tax. I understand that the existing UK tax on fossil fuels is 40%.
My portfolios are very overweight in energy stocks and particularly Vermilion. I understand that VET’s Corrib gas field is located within the boundaries of Ireland and the company pays only the Irish tax of 25% and has never paid taxes to the UK.
Would you please confirm or correct my statements about the UK taxes on fossil fuels. and the advantage that VET enjoys being an Irish producer?
With appreciation,
Ed
Read Answer Asked by Ed on June 01, 2022
Q: Good day.

I am trying to justify in my mind, if I should continue to have my investments in individual equities or in etf's. I was wondering if you could help me decide.

Currently. I am fully vested in the Balanced Portfolio for the Canadian side of my investments.

When I compare the performance of the Balance portfolio and an ETF HXT which is TSX total return it looks like this:


Balanced HXT

1-year 1.98% 13.33 %

3- year 9.13% 11.48%

5 - year 6.92% 9.79%

Inception 14.22% 10 year 9.29%

This info was taken from the Scotiabank iTrade website effective May 29th and the Portfolio segment of 5i.

I realize the composition of the 2 are different, but nonetheless I look and see that if I put all of my Canadian portfolio into HXT I would be no worse off and have lots less to worry about and adjust.\

So, in consideration of the comparison I made above can you please help me with the case of why I should stay vested in the 5i balanced portfolio and what are the advantages of doing so vs going totally to an etf.

Thanks in advance and I look forward to your input.

Sheldon
Read Answer Asked by Sheldon on June 01, 2022
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