Investment Q&A

Q: I would liked to switch the focus of my investments from equities to ETF's. Could you give me some broad parameters for guidance.
Could you suggest 10 ETF's for starters. Mid to long term with medium risk.
Thanks for your help.

Q: Regarding the above noted portfolio introduced in the November, 2018 etf/mutual fund update, I am uncomfortable with the overweight of the financial sector. Would you please suggest some possible alternatives to the 10% allocation to ZWB. Thank you.

Q: Happy New Year 5i and thanks for being there!
I just transferred TDB171 for $6000 from a non registered investment into my self directed TFSA. Thereby gaining 1.7% in MER fees.
TDB171 is about 50% income and 50% equity.
My thought is to redeem these funds and purchase some dividend DRIP eligible stocks.
Looking at purchasing some income and potential growth stocks.
H, ZUT, and ZWB come to mind because their dividends are currently north of 4% and would allow a DRIP return. With the anticipation of the market rising over the next 3 years and a 3-5 year investment period would you see these as safe moves with a reasonable chance of gain? Any other suggestions in any sectors would be appreciated along with your comments which are also desired and welcome.
John

Q: Re your answer to Craig on ZUT. Aren't you concerned that the highest % holding they have in their ETF is JE at just under 10%.

That's the only reason I haven't bought into it. Your feelings?

Q: Would ZWU or ZUT be a better hold for 2019 and beyond?

Q: I own the following:
ZUT - 5%, loss -9%
ZIC - 4% loss -6%
BCE - 2%, loss -19%

Would you recommend trimming any of the above?

Q: Hi, 5i!
We have 10% of our portfolio in CPD... What do you think of selling half of this position, 5% of the portfolio, and replacing it with ENB (Enbridge), say, and/or another "hard to ignore" etf (recently Ryan, in an Etf & Mutual Fund article, identified 3 "hard to ignore"opportunities: CPD, VOX and ZUT)? Please note: we hold the Balanced Equity portfolio, so already have 2% of the Canadian part of our portfolio in ENB.
Thanks!
Rod

Q: Good evening 5i.

I just want to say I have enjoyed this forum lots over the past year and it has helped me stay in the game.

My question is.

I need ideas for a few dividend etfs for my non-registered portfolio. To date I'm holding some large cap Canadian dividend stocks and fixed income. I find it easier to manage with less stocks and a few etf.
I now have 10% CDZ in my RRSP, would it make sense to put CDZ in my non-registered also?
Is CDZ dividend taxed the same as a Canadian stock dividend when held in a non-registered account?


Thanks Steve

Q: Hi, ZUT and ZRE both sold off during 2016 and Q4 2017 on rate concerns but now they are diverging with ZUT sharply down (which makes sense) but ZRE sharply up (???). Any idea why? Thanks.

Q: Would you be able to offer any insight to the sudden drop in utility company valuations?

Q: I'm interested in buying into the utility sector through an ETF. ZUT holds Canadian stocks and has a yield of 4.98%. 99% of the distribution are eligible dividends.

ZWU holds a mix of Canadian and US stocks with about 45% each of eligible dividends and ROC along with 10% foreign income. The yield is 6.64%.

If we factor in the DTC, there's not a lot of yield difference. What are the reasons for your choice of ETFs? Thanks

Q: Hi Peter and Team,

I find that we need to buy some more in the Utilities sector, to keep to a 10% weighting. We presently have about a three-quarter position in each of AQN, BEP.UN, and FTS. Do you think that INE would be a good addition to this mix or is it too similar to AQN and BEP.UN? We can buy and sell XUT commission-free, but I notice that ZUT (not commission-free) has a better chart. Should I increase our positions in each of the three we already have, buy a new one, or top up with XUT/ZUT? Or is there a US ETF in this sector that looks compelling? Or perhaps in the present "climate", could the utilities sector weighting be reduced below 10%? What sector should take up the slack?

Thanks for all your great advice which has been and continues to be very valuable. A Merry Christmas and Happy New Year to all of you at 5i and the members as well.

Q: Good day,
I have seen some fairly substantial losses with some of the listed stocks in my portfolio. I would like your advice on whether you think I should continue to hold the above or to sell , take my losses and move on. BEP.un and ZUT have just been flat, so your advice on wether to sell or hold would be great!
Thank you
Thank you.

Q: Hello Peter, I am looking for income, safety and some growth, I will appreciate your suggestion, ranking, perhaps a better choice of yours. Many thanks, J. A. P. Burlington

Q: What is the difference between ZUT anx ZWU? Which would be better for income for a retiree.

Q: What utility etf paying a dividend would you suggest for a long term hold

Q: I read with interest your recent article in the Post and was intrigued by the comment that research shows 90% of portfolio returns come from sector allocation - if a person wanted to take advantage of that, in a simple, easy to manage and inexpensive way (ignoring taxes for the moment) what would be your view be on an approach where one's equity component of their portfolio consisted entirely of a number of ETF's with each one of the ETF's focused on a particular sector, with a periodic (say quarterly) rebalancing? What specific ETF's would you suggest for such a portfolio? Thank you.