Investment Q&A

Q: Hello,
I have sold ZEM in my CDN RRSP account. I am going to transfer these funds to my USD RRSP. Which ETF would be an equal replacement for my USD RRSP keeping in mind tax efficiencies? I would like the US ETF to be as similar as possible to ZEM.

Thanks.

Q: I’m 71 years old. As I get older I’ve tried to simplify my portfolio, going from about 50 stocks years ago, to my current portfolio of about 16 stocks, 3 ETFs and 15% cash.
I am a subscriber to your Portfolio Tracking and Analysis service and I’m told I need to make changes to reach a suggested asset allocation and portfolio diversification. Right now I’m tech, utilities and financial services heavy.

Here’s what I’d like to do:
The following set up gives me an allocation of 70% equities, 20 % bonds and 7% cash. I’m comfortable with this and have gone through many 20 and 30% corrections in the past 30 years without too much despair.

In my Canadian cash account I’d have CDZ, FTS, AQN.
Locked in RSP (LIRA) I would have AAPL, ZSP, ZEM.
Unlocked RIF I ‘d have CLF, ZAG.
TFSA would have QQQ, ZEM, ZDI, CSU, TOI, SIS.
I’d like cash around 8% of portfolio.

I’m wondering if I have my portfolio diversification covered and if the right stocks or ETFs are in the appropriate accounts for best tax efficiencies?
Your input would really be helpful.
Thanks
Frank

Q: Hello 5i,
I have $10,000 of ZEM and am looking for income. Would it be O.K. to switch to DVYE? 75 years, value investor for income with some growth ( LSPD, LNF).
Stanley

Q: Which of these stocks/etfs would you predict to have the best near term upside?

Q: Good morning,

I have some cash and am looking to add more non-Canadian content to my stock portfolio which is 79.5% Canadian stocks. I have only 4.5% in Europe in FEZ (US$) and XEU (C$), and 16% in individual US stocks. I have no emerging markets. I am thinking of adding to XEU because the European market is cheaper than the US and the large number of value stocks in the ETF should benefit from re-opening in Europe. For a balanced investor would it be reasonable to double Europe to 9% by adding to XEU bringing foreign content to 25%?

Q: I'm helping a friend set up a "couch potato portfolio". I noticed a while back that you commented on such a portfolio. I am suggesting the following to my friend. What do you think? Is there any of the ETFs that you would swap out? And why?

XIU S&P/TSX60 total return for Canada 25%
ZSP BMO S&P 500 Index ETF for USA 25%
XEF ishares Core MSCI EAFE for Europe/Japan 25%
ZEM BMO MSCI Emerging Markets Index ETF for emerging markets 5%
XGD iShares S&P/TSX Global Gold for gold exposure 5%
ZAG BMO Aggregate Bond ETF 15%

It appears that both ZSP and XEF offer USD versions. What are the pros and cons?
Thanks

Q: I had a portfolio review many years ago when you did them individually, personally by human! At the time your suggestions were right on and cleaned up my ETF's. Now I have over ten and according to your metrics it should not be so. Given those above, is there anything that is not required? I am up 25%- 150% on all of them. I am happy with all of them. I have a balanced portfolio in all 11 sectors with 44 stocks all doing quite nicely thank you. Following the income portfolio with some of my own additions from 15 years ago. I do not see any major conflicts.I am s a buy and hold dividend investor with some growth ( lightspeed, Leon's).
Thank you for your million dollar service!
Stanley

Q: May I please have the names of 3 or 4 recommended non-North American, non-European ETFs and one European ETF?
With appreciation,
Ed

Q: I am interested in adding more international exposure. Over time, in a haphazard fashion I developed portfolio weights of 4% in ZEM, 2.5% in MAW150; and 1.5% in DXG. To my untrained eye they offer diversity, for growth & stability, to different markets, etc What is your view of these 3 holdings? Would you add to each? Delete any? Due to political risks from trade tensions etc, I am inclined to avoid too much of an exposure to China. Thank you for your excellent service.

Q: Hi,
Looking to replace this emerging markets fund (Pacific) because the MER is close to 3%. What would be a better solution in the ETF world, and is CDN-listed.
It's for a senior and this is their only int'l exposure. Thanks.

Q: I recently purchased Portfolio Analytics and I'm severely underweight internationally.

For international (excluding US) I am thinking VIU and VEE.

Any suggestions on how I should decide an appropriate weighting ratio of these two? Does it make sense to have equal VIE and VEE... more VIE?

Are there other ETFs I should be considering for international exposure?

And finally, these ETFs would make up a substantial portion of my portfolio. Would you suggest buying in one go or over time and if so what timeframe would you suggest?

Thanks for your service.

Q: ZEM is my only emerging markets holding. It has done well recently. Nevertheless, I understand that the rise in commodity prices is what is pushing emerging markets higher. The top ten holdings in ZEM are large , well known corporations like Samsung. Only 7% of the holdings are in basic materials. Are there any emerging market ETFs that would help me to participate more in the commodity price reflation?

Q: I bought ZEC, ZEM & XSU Dec. 24 . They have all done very well & amount to about 7.5% of my portfolio. I wanted to add XAW &/or XMC. Should I replace XSU with XMC or keep both? Will there be too much duplication with these ETF funds? I'd appreciate your comments on these changes.Thanks ,as always. Really enjoyed your "battle of the ETF funds".
Dave

Q: A few questions re best index ETFs for safety, total return and tax efficiency:
(1) S&P/TSX 60 (unregistered account): Is XIU, XIC or another ETF better?
(2) S&P 500 (RRSP/TFSA): What CAN listed ETF is best for long hold: ZSP, XSP or other ETF? If held in an RRSP (ie US dividend tax except), can you recommend the best US listed ETF for the S&P 500?
(3) NASDAQ 100 (RRSP/TFSA): What CAN listed ETF is best: ZNQ, ZQQ or another ETF? Is QQQ the best US listed?
(4) Ex-North America index (RRSP): Can you list the best CAN listed ETF index fund? Would you stick with large caps or all? XEF? VIU?
(5) Emerging market index ETFs (RRSP): ZEM, VEE or other?
(6) MISC: Has HXT, HXS and HXQ permanently resolved gov't issues and are these ETFs safe for long term hold?
Thank you!!

Q: Going forward, how much would you allocate between US/ Canada? What is the minimum you would recommend for international exposure? Was thinking of XEF and/or ZEM?

Thanks for your advice!

Q: Portfolio Analytics shows I still need 35% international funds in order to be balanced. I know it is more tax efficient to place ZEM and XEF in a non-registered account; however, I have room to place $15,000+ in my TFSA. My question is: Do you think it is wise to use TFSA for ZEM (given its potential for higher growth than ZCN) even though the foreign withholding fee is non-recoverable? Or, it is optimal that I find more growth stocks and add ZCN to my TFSA now then wait to purchase ZEM in a non-registered account in 3-6 months time?

Q: I currently own ZEM AND ZSP. Is adding XAW good? If one is going to buy US stocks most likely us tech stocks would one need to buy the ETF XQQ?
Thanks

Q: I am trying to increase my international / US stocks allocation with 1 of a few ETFs. I don't need income but some yield would be nice.
How do you feel about emerging markets for the next few years?
Can you please provide suggestions. Would you recommend a large position say around 15% to be meaningful in the portfolio. Long term buy and hold. Thank you for your help.

Q: Hello
This year, I plan to purchase an emerging market ETF (thank you for the suggestion) for my and my husband's TFSA. My question is - should I put most of the funds in a few lump sums or monthly over a year? Emerging markets seem undervalued compared to other markets and this fund has been steadily increasing which makes me think it will steadily increase over the year.
thanks

Q: Could you suggest another etf that is more concentrated on Asia than ZEM ? Is it a good idea to be more focused on Asia at this time or is broader better?
Thanks
Dave