Investment Q&A

Q: I like the high dividend paying shares of NYMT. Do you see any reason for a Canadian like me to pass on buying it for my RRSP.
After some research it seems to me that I would not pay tax on the dividend payout received in an RRSP. Can you verify that?
Other well respected dividend paying shares such as Bell (BCE) and Enbridge are Canadian companies so I could hold them in my TFSA without any tax implications. I am also noticing CM (Cibc) for long term RRSP or TFSA hold. BNS.TO, Also Telus KEY.To, Hydro one I won't mention Rogerw because I just don't like the way they do business. VDY.To. ZWP.TO covered call ETF. ZWE.TO is another one.
looking to get creative and make my own portfolio but not to proud to buy an ETF for income. I know you have an income portfolio I appreciate that and will look through it again. Looking for feedback for this strategy. I am a 50 year old Canadian citizen living in Canada looking for long term holdings.
Happy New Year - all the best.

Q: Hello
I thought it would be good to diversify and collect some extra income from European High Yield companies. Turns out a war in Europe is not good for stocks or currencies.

I hold both hedged and unhedged in equal amounts and see the 7% performance delta due to currency. By the Math (currency move) it is clear a trade out of currency hedged and into currency exposed would be favorable in advance of any recovery of Euro and Stirling.

I don't make Bets. The switch is a bet on Euro and Stirling recovering former glory.

Would you sit on current holdings with both exposures? Move to currency exposure? Or just get out of European companies.

Thanks

YTD August

ZWP..... - 14.99 % (currency exposed)
ZWE..... - 7.56 %

Q: It pays monthly distribution. It works out 7.41% at the current market price of 17.81. Is it considered as good income generating holding? If not then can you suggest a name? I hold ENB and ALA.
Thanks

Q: Greetings,

With the Euro/ USD hitting parity are there any stocks or ETF's that directly reflect the weakness in Euro's and allow us to invest in Europe at what is hopefully a discount?

We own ZWE and VGK - Do they reflect the weakness and could we buy more?

Many thanks

Q: Hello 5i
I hold the above covdered call ETF's as well as at least two individual companies from each (from before I bought these). also have over 10 ETF's that are not cover call. I have 51 positions with 49 stocks. These have performed well during this period of unrest. No they do not hit the high notes but not even close to bottom notes either but steadil;y increase in value aside from the dividends. My question is: with these new covered call ETF's at 12% of my investing portfolio (not including GIC's) might this be considered too much? Each is between 1.5% and 2% of the portfolio as are most of my holdings. The dividends are great and have kept up for the last three months. These also hold great companies that I would hold if I had room (and funds to buy them!) as a value investor. Please take as many credits as required.
Thank you
Stanley

Q: Hello 5i,
I am a value invester with a mix of equities and ETF's. I have done well with VGT and am up $8,000. As I look for dividends I am looking to sell VGT and buy ZWT. Also exchanging XHYy for ZWH, XTR for ZWC and VE for ZWE. Some are underwater but not by much. $75,000 is involved altogether with these exchanges. Do these changes make sense or should I just leave things as they are. The difference in dividends is nice to have (an extra $300 or more a month) but not really needed.
Stanley

Q: Could I get your favourite enhanced income etfs for a registered and non registered account

Q: Hello,

I own the whole list (weights 1% to 2%) thinking I was being diversified but maybe went too far.

1) I am on the right track to reduce to about 3 names?
2) Which names optimise income?
3) Alternative names that I might have missed?

Many thanks!

Q: Hi team, I presently hold ZWA @t 8.63%, ZWE @ 4.74% and ZDI@ 2.89% of my portfolio. I am very happy with ZWA (up 46%), happy with ZWE (up 5%), and not impressed with ZDI (under water about 5%).
I'm thinking of selling ZDI and either redistributing funds into ZWA or ZWE or into something better at your recommendation. Conversely, would like your thoughts on ZDI? is better performance just waiting for the international economies to rebound after COVID? I'm looking for distribution with growth. As well, I fully understand that portfolio % holdings are individual risks. Convoluted question here but would appreciate your thoughts and suggestions. Cheers, Bill

Q: Hello, I own above ETF's, and with rising bond yields, is it time to bail out ? If so, which one(s) to let go and which one(s) to keep.
Thanks
Carlo

Q: If I buy:
ZWC ((BMO CDN HIGH DIV COV ETF) for Canadian exposure and income,
ZWS (BMO US HIGH DIV COVER ETF) for US exposure and income, and
ZWE (BMO EUROPE HI DIV COVER CALL HEDGED CAD) for European exposure and income,

that will give me about 7%+ income and exposure to about 120 very decent world wide companies. As a retiree, would I need to do anything else?

Q: 50-yr old investing for retirement. Have historically been a dividend fiend but open to juicing the growth side a bit more as a result of the excellent advice I can now obtain from 5i. Considering adding to either my consumer defensive/staples allocation or increasing international exposure (the latter via an ETF). Hoping you might help me deploy a half position in an RSP and jump in one direction from a corner of the fence (and understanding you can't personalize such advice) - considering initiating a position in NWC (CA), PBH (CA), or WMT (US) or adding to an existing position in ZWE (European covered call ETF). My current geographical exposure is 34% US; 33% CA; and 32% International (XEF, ZDI and ZWE). My total covered call ETF exposure is around 8% of my equity portion and geographically diversified. Other suggestions for staples and international ETFs will be appreciated. Thanks for the great service!

Q: What do you think about buying some zwe right now? Seems like good value for a nice dividend.

Q: I need to set up an annual income for my wife, for next 25 years. In TFSA and RRSP, using only ETF's. Dividend growth and HY dividends. Should have 5% yearly and 10% total return. Can you recommend the appropate ETF's. Vanguard/BMO/ I Shares (only)
Please NO EM ETF's One European OK--- Key is 5% annual income. Investment .5M$ It has to be buy and collect for 25 years. No input by my wife.
Thank you
Cec

Q: Debating either of these, in a registered account approx 5 to 7 years before needing. Looking ahead with positive US election and vaccine news and how the CDN dollar will likely behave; which is better fund?
Thank you

Q: Which account type is best from a withholding tax perspective?

Canadian listed US equity ETFs - RRSP or TFSA

Canadian listed International Equity ETFs(ZWE) - RRSP or TFSA

US listed US equity ETFs - RRSP or TSFA

US listed US stocks - RRSP or TFSA

Q: How would you rank these ETFs. Would you hold all three or is there to much overlap between them. If not these do have another suggestion for international exposure.
Thanks

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: Looking for some guidance on my International equity holdings. All of my Int’l holdings are in the above ETFs and are in my RRSP accounts. The Int’l portion represents 10% of my total investment portfolio. Generally I look for a balance between income and growth with dividends used to supplement my pension income. I have 9 years before I have to RIF.
I have only recently added ZEM for its emerging markets exposure and tax friendly structure. While the other holdings have provided good yield I have not been happy with the lack of growth even before the latest correction. I am generally comparing the lack of growth to the US market which may not be a fair comparison.
Could I have your opinion on my holdings and any suggestions for improvements and why. I am looking for good diversification across the world, ex North America, with a view to a balance between income and growth. Would like to keep my holdings in CAD.

Q: Hello 5i Team,
I am in the process of building an income portfolio and I would like your opinion on the above stocks. Would you start a .5 position in the current market environment? (While the markets are rising) All of the above are for very long term holds.
Do you think KEY's dividend is sustainable and do you think its assets might look attractive to a bigger player like ENB?
I like gold long term and I have .5 positions in AGI and YRI and comfortable with. I currently view Sprott as sort of a mini ETF for junior gold stocks. As in I do not have the expertise or tolerance for individual junior stocks but I would be able to get a diversified portfolio of such stocks run by proven leadership and expertise. Is this a reasonable view to have of SII? Another .5 position would bring my total gold exposure to 10% which is where I would like to keep it. Does adding SII make sense given a higher risk tolerance or does adding to AGI or YRI make more sense.
I currently have no ETF exposure and the yields on ZWC and ZWE are quite attractive and they offer excellent diversification. Are the yields sustainable? I have heard that with covered call funds in general the main drawback is that the upside is limited while the main advantage is that the downside is also limited through yield. Is this correct? Income is the main objective with these holdings but if held for 10+ years or more I would expect some capital gains to be made. Is this reasonable? Do these ETFs ever trade at significant discounts or premium? How is the income classified to tax purposes?

Thank you for the great service!