Investment Q&A

Q: I have noticed that the real estate ETFs have been languishing over the last 10 years. What is your view of the real estate ETFs over the next 5 years? Under what conditions will these ETFs do well? What type of real estate ETFs do you expect to do well (domestic vs international, commercial vs residentical, etc.)?

Please recommend a North American and an international ETF which you feel could do well over the next 5 years. What percent of a portfolio would you recommend include real estate for diversification purposes?

Thank you for this excellent service.

Q: Looking for an ETF that you feel would be a good candidate for growth plus a fairly high dividend (5% or more).
Thank you for your good service, looking forward to your answer.
Earl

Q: I presently have these underwater stocks in a RESP. BCE, BEP.UN, ENB, FTS, LMN, XIC, ZEB, ZRE. The RESP will not be need for the next 10 years. I would like to sell some of these underwater stocks. Which stocks would you recommend keeping & which stocks would you recommend selling. Thanks … Cal

Q: Those ETF are at the same share price as 18 yrs ago...,could they still go much lower or is it a good entry point at this level ?

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

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

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

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.

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.

Q: Hi, In my prior question, the breakdown for ZRE is far from 100%. Is "residential" missing? Could be a private question. Thanks.

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.

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,

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.

Q: Hello Peter & Team,

I have held ZRE for some time for the dividend and now have a capital depreciation over 15%. Should I hold this? Sell? And if I should sell and take the loss, what would you recommend for a good dividend ETF with minimal MER & volatility?

Thanks for all you do

Gord

Q: Would you be able to tell me the trailing and forward P/E for XRE and ZRE? What are your general thoughts for REITs over the next few years?
Thanks!

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…

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.

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?

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

Q: How secure are the dividends from these real estate investments?