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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: Hello 5I
In your opinion, if one is negative or expecting volatility in the market short term, and you want to insulate yourself from this possibility, what needs to happen in a portfolio? Do nothing as this might be emotional and historically a bad move, invest in an inverse ETF, Move a little more towards Gold, consumer staple or low beta stocks? What type of news would make you personally shift focus? Of course, I am asking for your opinion but is there any proof for the answer? Thank you
Read Answer Asked by Jeremy on September 04, 2020
Q: Hi group I asked question last week on W I had a 2% position and based on the market at the time I increased to a full position. Since then its down $70 + us > What is going on can you help me with some guidance< I know this is a value stock along with Virus implications. What your view going fwd hold or sell I still have a 10% profit even after todays rout Thanks for your views on this going fwd . Also when is the next earning due out I would expect them to be very good - do you agree ?
Read Answer Asked by Terence on September 04, 2020
Q: Retired dividend-income investor. Looking to add to my Consumer sector. I already own PBH, NWC, PLC. I am looking to add one more name, preferably with a dividend > 3%, although dividend security and dividend growth are more important than todays yield.

I have looked at CTC.A, LNF, MG, PRMW and QSR. I have researched each using both fundamentals (beta, P/E, P/BV, P/CF, P/S, ROE) and technicals (higher highs and higher lows, above 200mda), as well as current analyst estimates.

CTC.A comes across as just "ok". LNF has already had an incredible jump recently, so I am hesitant to buy at current prices. MG is not bad, but shows a ROE = -1%. PRMW looks good except for the ROE = -9%. QSR also looks good, showing a ROE = +29% (I can't find P/BV and P/CF anywhere). The bottom line is there doesn't appear to be a stand out obvious buy. I am leaning toward one of MG, PRMW or QSR.

Would you please rank all 5 companies from best to worst for the following (assuming a 3-5 year hold):
a) Dividend security
b) Capital gain potential
c) Total return potential

Thanks for your help. Much appreciated....Steve
Read Answer Asked by Stephen on September 04, 2020
Q: If you were to establish an RESP for someone who was just born, and are starting with a small amount of money, perhaps a couple of thousand dollars, what would you invest in? Would you invest in an ETF? If so, which one? Would you consider investing in a single stock? If so, which ones would you consider?
Read Answer Asked by Doug on September 04, 2020
Q: Hi, I am the sole owner of a rental property that amounts to 25% of my
total assets. My existing equity portfolio consists of another 25% of
my total assets. The other 50% consists of my principal residence and
cash. I am about to turn 65 (widowed), and am thinking of selling the rental property and using the balance to buy REITs for income. I'd
like to get your thoughts on:

1) The financial tradeoff between owning a physical rental property
and owning REIT shares. Over the past few months in Toronto, property
prices have gone up as much as 15% but REIT prices have decreased
drastically on the TSX. Does it make sense to keep physical real
estate when REITs are discounted (or maybe they're actually priced
appropriately for the future?) Being a landlord requires a fair bit of
work and I'd like to take it easy in retirement.

2) The optimal percentage of total assets in the stock market during
retirement. If I sell the rental property and invest those proceeds
for a total of 50% of total assets invested in the stock market, do
you think this makes sense, or is that too risky? I have very low/no
exposure to bonds.

Thanks in advance.
Esther
Read Answer Asked by Esther on September 04, 2020
Q: Hello 5i team,
Let’s say the S&P500 decreases by -15% from its high earlier this week over the next few days or weeks for no specific reason other than stretch valuations, COVID, elections and fiscale stimulus uncertainties. By how much would you expect each of the following stocks (DND, DCBO, LSPD, REAL, DSG, WELL, XBC, VEEV, BYD) to go down (a guesstimate for each)? Among other of your favorites, what other stocks could see an even worst correction?
Thank you for your collaboration, Eric
Read Answer Asked by Eric on September 04, 2020
Q: What five income stocks do you see as undervalued at this time. How much upside potential in each do you calculate. What is the time frame involved before you believe each reaches its price expectation. Thank you
Read Answer Asked by Ric on September 03, 2020
Q: Hello 5i Team
I am comparing two ETF from Vanguard Canada and from Vanguard USA.
Vanguard Canada – US Total Market ETF (CA:VUN), trades in Canadian dollars on Canadian exchange, tracks the CRSP US Total Market Index. The MER is equal to 0.16 %. The 2019 distribution was composed of $0.99538 foreign income, $0.00076 ROC and $0.1593 foreign withholding tax (approximately 16 % of the total distribution, applied by Vanguard).
Vanguard USA – Total Stock Market ETF (US:VTI), trades in US dollar on US exchange, tracks the CRSP US Total Market Index. The MER is equal to 0.03 %. The 2019 distribution was US$2.8747 with no withholding tax applied by Vanguard.
Questions are:
1 – Are these two ETF essentially the same (one trades in C$ on Canadian Market, the other trades in US$ on the US Market) as they both appear to track the CRSP US Total Market Index?
2 – If I hold CA:VUN in a non-registered account, will there be withholding tax applied by my broker to the distribution?
3 – If I hold US:VTI in a non-registered account, will there be withholding tax applied by my broker to the distribution?
4 – Is the difference in the MER (0.16 % vs 0.03 %) essentially the 15 % withholding tax applied to US dividends?
5 – Which is the better ETF to hold in a non-registered account, ignoring the cost of currency conversion to purchase US dollars in order to buy US:VTI?
Thank you
Read Answer Asked by Stephen on September 03, 2020
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