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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 would like to ask for your opinion and comment on my investment approach with reference to hedged to CAD or un-hedged versions of ETF's available from Canadian issuers. My approach has been the following:
- keep US equity ETF un-hedged;
- keep developed and emerging international equity ETF's hedged to CAD;
- keep US bond ETF's hedged to CAD.
I am aware that this approach was not too benefitial during the past month or two, and I am starting to have second thoughts, but I figure I better ask for a second opinion from a pro before I make any changes. This is where you guys step in...
Thank you.
Read Answer Asked by Rudolf on July 20, 2017
Q: What do you think of the Phillips Hager & North High Yield Bond fund? I understand the lead manager is Hanif Mamdani. The fund seems to have half its assets in Canadian and half in American high-yield bonds. The MER is 0.87% which doesn't seem too bad for this kind of fund. The chart they post on the web looks outstanding (http://funds.rbcgam.com/pdf/fund-pages/monthly/rbf1280_e.pdf). How risky is this fund going forward?
Read Answer Asked by Philip on July 19, 2017
Q: I have multiple questions in this post, feel free to take as many credits it requires.

I am right now rethinking my portfolio and your advices-suggestions would be greatly appreciated. I am investing for the long-term 10+ years

In the past 2 years, the size of my portfolio has tripled, mostly due to savings. Both my RRSP and TFSA are full, and I am now putting my new savings in an unregistered account. My full position (5%) size is currently between 8 to 9K$. When I began investing, in my TFSA my positions were more of 2-4K$. Here's a list of what stocks are in which account :

TFSA : ATD.B, GSY, MG, NA, OTEX, PHO, POT, SNC, T, and TD
RRSP : AQN, FTS, GUD, SIS, KXS, SLF
Un-registered : BAM, CCL.B +50K cash

I was thinking of selling SNC to buy back WSP in un-registered, and also moving TD to un-registered. So I could add to PHO, OTEX and GSY (my smallest positions). Is there other stocks in my TFSA that would better fit in another account? Do you have suggestions?

Also, I know I have some more growthy names in my RRSP that would might be better in a TFSA, but that's where I had room at the time of buying. Do you you think it's worth moving stocks from this account or it's OK leaving it as it is? I am at least 30 years away from retirement and don't plan to use money in my RRSP soon.

I would like to add gradually 4-5 positions to my un-registered account with my cash position. Do you have suggestions for quality long-term stocks (as I want to avoid as much as possible to sell in my un-registered) that could improve my portfolio?

Thank you!
Read Answer Asked by Julien on July 19, 2017
Q: Given the recent questions concerning FIH my interest in India has been piqued.

My question might be outside your scope .... but I just received what appears to be an email promotion from Deutche Bank India. The offering is for a FD (fixed deposit) GIC for 5 years with a graduated interest rate starting at 6.9% for years 1 and 2 and moving up from there to 8%. Too good to be true? Obviously the interest rates are appealing.

I could try to copy and paste the ad if you are unable to find it.

Thanks for your help.

A dividend seeking senior!
Read Answer Asked by Donald on July 19, 2017
Q: Good morning Peter,

Thank you for your thoughtful-as-usual, prompt answer to my recent question.

You feel that over the long term, a 50/50 portfolio (50% US Market Index ETF/50% US Money Market Fund) would return about half or less than one that is fully invested in the US Market Index ETF.

Writing in San Francisco's MarketWatch on Sept. 2, 2010, Jonathan Burton showed that such a portfolio "...has made almost as much money as the more aggressive, stock-heavy strategy over the past 25 years and topped it over the past decade."

Why would investors not reasonably expect a similar future performances?

Thank you.

Milan
Read Answer Asked by Milan on July 18, 2017
Q: good day...I am looking for a mutual fund that has no load and a small mer that my son and his wife can use in their rrsp for the next year or two ...I only want an mutual fund because of the trading costs incurred by buying individual stocks until they have a larger balance in this account...if you could recommend a good fund here I would greatly appreciate it...gene
Read Answer Asked by gene on July 18, 2017
Q: Greetings Peter and company,

Having been a do it yourself investor for over 50 years and a committed index ETF investor for the last 10, I am very impressed with what you are doing.

Assume that investors put half their money into a US index ETF (say SPY) and the other half into a US money market fund. They re-balance when the ratio changes by 10% in either direction and withdraw 1% quarterly to cover living expenses. Will this no-brainer portfolio grow over the next decade? Will it equal or even outperform the i5 Growth Model Portfolio? (Projected 12% annualized long term return. Since the bottom of 2008, the S&P 500 has had a 14.5% annualized return.)

I would appreciate your views on this. Your responses, as far as I have seen, have been uniformly thoughtful.

Thank you.

Milan
Read Answer Asked by Milan on July 18, 2017
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