Investment Q&A

Q: Bought a small position of ZRE last year for a dividend payer.
You recommendet it back then. It went up nicely and also pays a nice dividend.
Thinking about buying more. Your opinion?
Thank you.

Q: For those who hold ZRE and/or ZUT:

After multiple attempts via phone and RBC's internal secure email system, I finally spoke to a RBC Direct Investing representative today regarding ZRE and the Dec 29/20 RBC announcement of their 1.048:1 stock split. The rep was excellent, but had to check higher up the food chain to get an answer. Within minutes she got back to me with the answer.

The share split announcement for ZRE was simply a mistake on their part. There is no share split. Ditto for anyone holding ZUT (I don't).

It was as I suspected, but I couldn't let it go until I had it confirmed to me by RBC. End of story.

Steve

Q: On a chart, 10 year interest rates move up quite a bit. Higher rates put pressure on REITs because of the debt. Why do you think they were unaffected and even went up? Actually, quite a few REITs look good technically. Are they recent positive news?

Q: Did you ever hear anything more regarding the ZRE 1.048:1 stock issue? I just checked the "holding" status and activity on ZRE in my RBC Direct Investing account. The number of shares hasn't changed at all and I don't believe the ACB has changed either. There was a note posted by RBC that the ZRE 1.048:1 issue was taken care of effective Dec 29/20, so I thought I'd give it a week or so to see if anything showed up before calling them. Check with you first.
Thanks...Steve

Q: Anticipated a double bottom last March that never happened. Our RESP currently is 40% cash with 5 years to go before withdrawals. VBAL is the largest holding. Current valuations are holding me back from putting new money into equity index ETFs. The RESP has money in ZUT, up 32% and ZRE, up 12%. I am considering adding to these favoring ZRE because of its valuation. Do you concur? I would welcome some other alternatives, but I want to stay away from individual companies.
Thank you

Q: BMO Notice about ZRE ETF reinvested distributions. Amount they quote is 1.05 on their web site.

TORONTO, Dec. 18, 2020 /CNW/ - BMO Asset Management Inc. and BMO Investments Inc. today announced the 2020 annual reinvested distributions for BMO Exchange Traded Funds (BMO ETFs) and ETF Series of the BMO Mutual Funds (ETF Series)1. These annual reinvested distributions generally represent realized capital gains and special income within the BMO ETFs and ETF Series, and are paid to unitholders, as required, to ensure that the BMO ETFs and ETF Series are not liable for ordinary income tax.

Unitholders of record at close of business on December 30, 2020 will receive the 2020 annual reinvested distributions. The actual taxable amounts, including the tax characteristics, will be reported in 2021.

Please note that the cash distributions will be reported separately and may be applicable to some ETFs and/or ETF series making annual reinvested distributions.

Q: I have a notice from my broker saying, 'A 1.048 : 1 stock split for ZRE has occurred, effective December 29, 2020
I have done some digging but cannot find any information as to why it is occuring. Can you help?

Q: Hello 5i,

I am looking to create a sector diversified portfolio, that will provide dividend income
each month throughout the year? Preferably yields over 4%, reits, and etfs are acceptable. Even better would be payouts at the beginning of each month?

Thanks for your help
Stephen

Q: Hi 5i,
I have no exposure to the Real Estate market. I'm wondering if there are any REIT's you would recommend right now?
Thank you.

Q: What would be the best equal weight TSX ETF (CDN $) and also S&P (US dollars) Low fees for both.
Thanks!

Q: In the current state of REIT is there a better choice between these two.

Q: I am down in XEI and ZRE about 20% and 25% respectively;
in DGRO 2%.
Do you think it is worth waiting for a turnaround or should I
look to exchange for something more hopeful?
Although DGRO is only down a bit it has never gone up.
Would something like VUG be more growthy?
I would appreciate your assessment.
Thanks.

Q: Hi

I am retiring in the near future and am looking at increasing my income based positions. I am looking for a REIT or ETF. Can you suggest any? Currently I am not holding any.

Q: Hello 5i,
I have the above ETF's in my TFSA as I believed the distribution is interest. I read in reports that distribution is dividend or "dividend interest") All quite confusing. In the TFSA's are also a GIC 5 year ladder, growth stocks (LSPD, LNF) and some high dividend paying equities. Should I journal the above ETF's to a non-registered account and refill the TFSA come January with more growth and GIC's or leave everything alone? I am 73 with a defined pension and 60/40 fixed / equity
Stanley

Q: Which would you prefer, IDR, ZRE, or RIT, and why?

Q: REITs are beaten down. For a long term investor who wants real estate exposure, is this a time to get in? Can you suggest (1) two or three REITs or other entities and (2) an ETF for this? Thank you!

Q: Looking for a reasonable dividend (>2%) with some growth in a non-registered account. Was thinking of binning PPL and ZRE (down more than 20% on each), harvesting my tax losses, and replacing with PKI and SIS. Would you suggest holding the course, or swapping one or both out for PKI and/or SIS? (I would have considered swapping out for TRI and/or SLF, but am already at 19% financials.) Thank you.

Q: Hey 5i team!

RESP 10-15 yr hold.
Current HXQ, ZSP, XIT, XIC. ZRE.
BAM.A, CAE, BPY.UN.
ETF's are core holdings in that order been riding the recovery. BAM looking longterm. BPY.UN AND CAE are recovery plays. Bonds not needed until later on. Intl and emerging is looking to be terrible for a year or so. Possibly adding IWO.

What would be your major changes and or additions to this grouping? What would you recommend? With a shorter timeframe then some we need some solid and secure growth plays.

Thank you. Looking forward to your reply.

Q: I am 72 and retired. I have been building a part of my portfolio (58.4%) for the last three years with ETFs. Current holdings are (% weight of portfolio in brackets): zwh (10.5), zwu (9.1), zwc (8.5), mft (5.9), xtr (5.3), xhy (5.2), zwe (4.7), cdz (3.2), zdh (3.2) & zre (2.9). With 24.2% cash, I plan on slowly adding to these etfs. How would you do this? The remainder of my portfolio is in dividend paying Canadian large caps.
Thanks, Jim

Q: Hey 5i,

As a follow up. What are your top picks US/CDN REIT ETF's
You'd recommend for a longterm hold.

Thank you for all the great advice!