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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: hi, ZRE is up 4.12% since 5i income portfolio purchase ( not sure the exact date of purchase for the income portfolio? ). the unit price is up 21 cents from 10 years ago, or about 1%. so basically holders of the ETF have gotten the dividend but nothing else really. I would have expected the unit price to be up much more than that since 2014, as property values have dramatically increased since 2014, as have rents. can you elucidate for us what is going on here ( im not convinced this is all interest rate action ). im wondering how well this ETF is tracking it's underlying holdings/investment thesis/philosophy? further, do you have data in regards the performance of ETF's in tracking their underlying holdings/investment thesis etc.? my guess is that they all "underperform" as they essentially are just another "equity" on the open stock market, sensitive to the irrationality of the markets? thanks for your insight! chris
Read Answer Asked by chris on June 06, 2024
Q: hi, the annual rate of return on the equity price ( not including dividends ) is about 2.15 percent since may 2010. is this what you would expect for this going forward? and do you have the annual rate of return including dividends/fees etc? I can't find that. do you think this is a good time to add shares ( its trading below April 2013 ). im a bit confused as to why it is trading at this level, ie how do metrics compare with April 2013? cheers, chris
Read Answer Asked by chris on May 17, 2024
Q: As an older investor, I am considering a gradual move from mostly individual stocks to a fully ETF portfolio. My thinking is to allow management simplicity for my wife in the event of my death or disability. Seeking dividends predominately but also a representation of growth. Can you please suggest an array (portfolio) of ETFs that I could begin migrating towards? As always, your advice is appreciated. thank you
Read Answer Asked by alex on May 08, 2024
Q: I have these ETF's in my portfolio, although they are a small percentage. I am wanting to do a clean up of most of my partial holdings in individual stocks and purchase more ETF's. I was going to add VIG as well. Could any of these ETF's be replaced with better ones or not bother with them, and what others do you suggest to compliment them for an income investor who wants to see a little growth as well in a well diverse portfolio? Thanks.
Read Answer Asked by Pat on May 08, 2024
Q: Is there an ETF that provides equal weight coverage of the TSX similar to what EQL does for the S&P 500?
I would like to increase my ETF holdings providing a broad coverage of the Cdn market vs individual stocks. I already have a heavy weighting in individual financial stocks and most TSX ETFs would simply further skew my overall balance.
Read Answer Asked by Bruce on April 23, 2024
Q: I hold both ZRE and XRE. I selected two ETF because their Top10 holdings looked different enough. ZRE has also a better yield. Do you see a better growth from one of them?
Would you have on-hand a breakdown of their holdings (industrials, residential, retail, office). Could these ETF have private holdings? Thanks a million.
Read Answer Asked by Denise on April 09, 2024
Q: Which REITs, either Canadian and/or US, are suggested for secure dividends and potential appreciation once interest rates settle. I asked this question several days ago but it much have fallen through the cracks. thanks A,
Read Answer Asked by alex on March 12, 2024
Q: On March 4 you wrote, "We do like the outlook for REITs and think that as rates stabilize and even decline, the sector should benefit. Out of the two REITs mentioned we like XRE better due to the bigger size and slightly lower expense ratio."

On January 12 you wrote, "HCRE is an equal-weight REIT ETF, which has a small AUM of $48.3M, a relatively low MER of 0.33%, and a yield of 5.9%.

ZRE is also an equal-weight REIT ETF, but has a much larger AUM of $583.7M, an MER of 0.61%, and a yield of 5.1%. XRE is not equal-weight, has a large AUM of $1.0B, a yield of 5.4%, and an MER of 0.61%.

ZRE has outperformed XRE over a long period of time, and thus we like the equal-weight approach."

Can you please clarify your preference for either XRE or ZRE and the main reason for that preference? I gather your preference is for ZRE given it is part of one of your portfolios. It is just that your March 4 response has led me to wonder.

Thanks as always for your expertise.

Read Answer Asked by Richard on March 11, 2024
Q: Sir. In the spirit of weeding the garden, I find myself well down in these stocks…with a time frame of 1 year , please comment on which to keep or toss how…. 5i had good things to say about many of these in the past, but we all know that times change quickly in this business…
Read Answer Asked by James on February 05, 2024
Q: Hello, I would like your opinion of HCRE versus ZRE and XRE. Avantages include the lower MER (0,33%) and no taxable distribution in a cash account, but it has a low trading volume. Thanks.
Read Answer Asked by Martin on January 12, 2024
Q: I took a position in ZRE, I also try to avoid office REITS and a to high proportion of retail REITS in the present market..I noticed that ZRE fact sheet shows 68% retail REITS,and no residential REIT in its sector allocation ! Among the 23 holdings, at least 9 appear to be residential REITS.Could you please indicate the "real percentage" of retail REITS and of residential REITS in this ETF.Are sector allocation % calculated from the number of REITS or by the cumulative NAV in each category?
Read Answer Asked by Jean-Yves on January 10, 2024
Q: I am woefully underexposed to the real estate sector.
Could you please identify your top 3 Canadian stocks, REITS and ETF's which one might play for the impending interest rate cuts in 2024?

Thanks
Jeff
Read Answer Asked by JEFF on December 04, 2023
Q: Good afternoon,

I know that there are diversification benefits to owning ZRE vs individual REITs in Canada. But for a 1-2% portfolio weight, I wonder if I might be better off with a name like CHP.UN purely for income given the quality of their largest tenant.

I have owned ZRE for awhile now, but have to admit to being underwhelmed by its performance.

Thoughts?

Thanks as always.

Thoughts
Read Answer Asked by Trevor on November 01, 2023
Q: I don't have any ETF's and I would like to have one of Canadian stocks and one for US stocks. What do you think of the above etf's or could you suggest another one for each of the markets.
Thank you Dorothy
Read Answer Asked by Dorothy on October 24, 2023
Q: I'm not sure if I should take comfort in the fact that you still have ZRE in the portfolio or not, the last little while has been rough. If you were putting new money into the sector under current conditions would you stick with the equal weight ETF approach or would you just choose a couple of your favourite individual stocks like DIR and/or CAR (or perhaps another ETF that is not equal weight)?
Read Answer Asked by Stephen R. on September 26, 2023
Q: Interest rates likely peaking and many real estate stocks are trading at discount. I am considering adding to real estate. Would you comment on this thought and suggest a stock and index.
Read Answer Asked by joe on September 13, 2023