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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: I have a $700,000 portfolio 50/50 including a mix of ETF's and stocks - blue chip value /dividend. I also have $60,000 in a GIC ladder with Oaken many at 2.5%-2.75% in TFSA accounts. There is $200,000 in a cash account, $50,000 with Oaken at 1.75%. I am 70.
I am expecting an inheritance of $300,000. Should I put this in more GIC's with Home Bank and Oaken or start a new series with your Income Portfolio or is there another suggestion?
Read Answer Asked by STANLEY on November 27, 2016
Q: Hi 5i. I saw an interesting interview on BNN's 'Money Talk' (Nov23) with Damian Fernandes of TD Balanced Growth Fund. He was discussing the impact that a Trump reduction of corporate taxes would have on the S&P 500.
Hereis the link : http://www.bnn.ca/money-talk/money-talk-trump-s-impact-on-markets-and-sectors~1001584
If you have a chance to see it I would be very interested in your opinion.
As a result I am looking into investing in a S&P 500 ETF. I have looked at iShare's IVV (US$) which has 506 holdings and a MER of 0.04% - this would require converting CA$ to US$. Two other Canadian ETF's are Vanguard's VFV containing 509 holdings and MER of 0.08%, and iShare's CA$-hedged XSP which contains 1 holding (being IVV) and has a MER of 0.11%.
Two questions:
1. can you explain why XSP (hedged) MER would be almost 3x the IVV Mer that is its sole holding.
2. I assume that Vanguard's VFV is "unhedged". Can you explain how the Hedged product (XSP) differs from the "unhedged" product.
Thanks as always for your great advice.
Read Answer Asked by Terrance on November 27, 2016
Q: Yesterday I put in a limited price buy for 100 shares of the ETF PEJ. It was filled with one individual stock. When I brought this to the attention of ScotiaItrade using their call centre I was browbeat by the initial answering person and then her supervisor. I did not know what the acronym AON meant and since I did not use the button on the order it was my fault I got a fill of one share. I have been using a discount broker for 19 years, am a fairly active trader and have never encountered this situation. I was told by the supervisor that board lots only apply to the TSX and not the US Markets. I would like to ask you if that is true and I will govern myself accordingly in future. In passing it took 26 minutes or so to resolve this issue. Now to wait till Friday to order 99 shares using AON.
Read Answer Asked by James on November 27, 2016
Q: Hi,

I have 1/2 positions in FTS & AQN now. I'm considering adding another 1/2 position to utilities. I could get a 1/2 position in BEP.un or add to FTS and/or AQN.

Your thoughts?

Thanks,

Gord
Read Answer Asked by Gordon on November 25, 2016
Q: Hello 5i team,
Recently a member asked about core american stocks to hold and you mentionned, amongst others, GE and JNJ, I believe.

I was wondering what would the best mix of American stocks be for a buy and hold investor who has a portfolio of about 30 stocks total.

Here are the ones I hold currently and my question is whether they make a good core holding?

Also, i plan to add JNJ and GE to this mix. Being large cap stocks, is there much advantage in buying these over times in several slices, or better to buy a full complement right away?

Here are the ones I hold, which I mentionned:
3M
Apple
Conagra foods
Ibm
Procter and Gamble
Pepsi
thanks once again for the great service!
Read Answer Asked by joseph on November 25, 2016
Q: Back in July, I purchased the Global X Gold Explorers ETF (formerly GLDX, now GOEX). I was reluctant to sell when it started to dip, but since the price of gold keeps falling I'm wondering what to do. My time horizon is long and my allocation is small, so I can live with being in the red for many years. What I’m wondering is if it's safe to hang on to it, in terms of there being any risk to the underlying companies or even the ETF provider itself. Should I have any concerns about Global X? Also, if I can ask a related question, if an ETF under-performs for long periods, is there a risk of it being discontinued? Thanks for your help.
Read Answer Asked by Brian on November 25, 2016
Q: HI Peter and team. AM I better off investing in an ETF such as VDY or the top 10 - 15 holdings? WIth a 0.22 mer and a $100,000 investment it appears I would still be ahead based on 10 or 15 trades per year given $10 cost per trade. I would also realize a higher avg Yield vs the ETF yield. Also where can I find a list of the complete holdings of an ETF vs just the top 10 that most sites list. I very much appreciate your expertise and advice. I'm
Read Answer Asked by John on November 25, 2016
Q: Do you think CRH has risen too quickly recently and is a sell candidate? I note that the 3 month return is 75% without a lot of news. I have owned the stock since the $3 level and I am talking myself into selling. I recall the Auto Canada, Badger and Patient Home Monitoring debacles and this feels similar. Too well liked, excessive momentum.
Read Answer Asked by Chris on November 25, 2016
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