Investment Q&A

Q: What is the best etf or mutual fund to invest in India? As well do you think it is a good area to invest in right now?

Q: I would like to make a small investment in India; now the most populated country on earth. I like ZID that has returned about 81% over the past 5 years, but the market cap is only $122M - is this ETF too small? I like FIH.U with a trailing P/E of 6.23 and market cap of $1.94B, but it has only increased 13% over the past 5 years - can FIH.U only be bought in USD? Would appreciate your thoughts on ZID and FIH.U, or perhaps you have another suggestion regarding investment in India.
Thanks!

Q: Good morning,

All the emerging markets ETFs seem to be weighted roughly 50% to China and Taiwan. I would like to re-balance the EM weighting using Canadian-listed securities to one or two dynamic regions or countries (not sure, India or SE Asia maybe). Are there good ETFs for dynamic regions or countries that could balance things out a bit for a more globally weighted exposure? ZID caught my eye; 0.67% fee.

Would you do this or would you stick to the one-stop-shop EM ETFs like VEE/XSEM?

Canadian products only, please. I'm aware the US has greater selection. Many thanks for your help.

Q: I am looking to diversify to more reasonably valued markets. I already own North American and European stocks / ETF's. So I want to increase my Emerging markets portfolio weighting. I own VWO (heavy Chinese component) and also ZID, so I would like even more diversification in S.E. Asia.

You've recently answered a question about EWY and mentioned how reasonably priced it was. Would EWS also be good value right now (i.e. P/E, P/S) ? Is 6% the correct dividend yield for that ETF, and are there any taxes withheld if it is part of one's RRSP ?

Q: Dear 5i,

can you please suggest an alternative ETF from ZID that has same as or better price performance. The ETF can be listed on either US or CDN exchange.

thanks

Q: Would you have an opinion on the Global X FTSE Southeast Asia ETF? I already have VWO and would like to add more Emerging Markets, less some China - which seems to dominate VWO. I also do own ZID which gives me exposure to India.

Q: Hello -
I have a concern about the grossing up of Canadian dividends (non registered account) affecting my OAS when I reach 71. By that time I will be forced to RRIF, I'll have my CPP, and I also have a company pension that I will be drawing from prior to that.

I know you are not tax experts, but wondered if you see anything wrong with my thinking here. I am leaning more towards lower paying dividend paying blue chips in that non-registered account. I already have ATD.B and CNR. Are there any other quality Canadian companies that you are comfortable with in this "lower dividend" category?

Alternatively I was thinking I could "swap" some investments. i.e. have more Canadian dividend payers in my RRSP and have my emerging market ETF's - ZID and VEE - in my non-registered account. Do you think this is worth considering?
At least those dividends would not be grossed up. Although the trade-off is that you lose the dividend credit.......sigh.

Q: Hi 5i team,
What is your favourite top pick for India ETF and your top pick for China ETF (preferably in C$)? Or would an emerging market ETF be a better investment approach? Which emerging market ETF you prefer that has a larger percentage invested in China and India? Thanks for you advice.

Q: Thanks for the presentations at the Canadian Fin. Summit.

My question is regarding taxation of ETF's. I'd like to know if I understood correctly. I have VWO, GDXJ and ZID all in my RRSP (USD and CAD accounts respectively). Are you advising that they should be moved to non-registered accounts?

Q: Hello -
According to TD Webroker, the PE for this ETF is about 23. I am trying to determine how this valuation compares to its historical past. Is this considered expensive for this ETF? I sure would be reluctant to purchase a stock at a PE of 23.

Thanks,
James

Q: What would be the best ETF choice for exposure to India (USD or CAD is fine)? I am aware of ZID. Is there anything comparable or better?

Thanks

Q: Hi, I am 42 and just signed up for your portfolio analysis service. One of the key gaps noted was an over-sized focus on Canadian equities and etfs, and particularly a gap in sufficient international investments.
With a 20+ investment horizon for an existing rrsp portfolio, could you suggest some holdings to build a better international base? I already use Both general and thematic etfs but would be happy to add some more targeted stocks of ideas as well.

Thanks so much

Peter

Q: Happy Holidays,
can I get your thought on the following:
1. why is ZID-T recent performance decent and FIH.U poor?
2. why is ZID-T recent performance decent and SP500 index poor?
I'm curious why ZID performance is relatively good as of late.

thanks

Q: Hello -

Even though these two ETF's trade on the TSX, there are foreign companies within their respective portfolios, For this reason, would ownership of these ETF's in open accounts count towards the $100,000 of foreign property that one needs to disclose?

Thanks.
Jim

Q: Hello -

I'm interested in buying this ETF, but am unsure which account I should purchase it in. It appears to priced in CAD, so this would eliminate my U.S. accounts as options. The ETF pays a small dividend. Even though this dividend is paid in CAD I'm still assuming there is no preferential tax treatment since this a foreign ETF.

Is all this correct?
If so, would it make the most sense to make the investment in my (CAD) RRSP, or perhaps my (CAD) TFSA ?

Thanks.
Jim

Q: 1). What do you think of India as an investment in the next two years?
2) Which of the two efts, ZID or XID, would you choose and why?
3) Is there an alternative Foreign ETF you would prefer?

Q: Hi Peter et al:
I am looking to invest some money in India. The two etf's that I was able to find are xid and zid. I am looking for mid to large cap value,however BMO states that zid is growth oriented and high risk. I am a subscriber to your etf branch but I couldn't find what I needed there. Also what would you recommend for etf exposure to Europe and the Euro, which I believe will appreciate relative to the cad.
Thanks,
BEN.

Q: Hi Peter,
In a well diversified portfolio, which India fund would you hold (from the list above or another) ? Why is FIH/U currently agging the others ? We already own FFH; Is buying FIH/U as well too much Fairfax ?
Thank you, Paul

Q: Hi, I am holding EMQQ and VWO. Would it be better to switch to VFV or an India fund ( FIH.n or ZID?) ?
I appreciate your advice. Helen

Q: I would like to add BMO India equity etf (ZID) and Hamilton capital global bank etf (HBG) in to my TFSA account for international exposure. what is your out look, about these etf for next four to five years?