Investment Q&A

Q: I loved this recent question from Giovanni, big kudos to him and his son for taking the fantastic suggestions from 5i, and GIANT HIGH 5 to 5i team!
So to ask the same question today, my 30ish daughter has about 45k cash in TFSA. Also has some NTDOY, DIS ZQQ and ZEB. Ok with ETFs but I don't think there is as good a chance for towering home runs like NVDA.
Let's grow!

Q: I asked a question last week but it must have got lost. This is a follow up question regarding my question about if you could only hold 3 ETF's what would they be. You answered ZSP, XIC and ZNQ. Can you please explain the rational for owning both ZSP and ZNQ. Is there not a lot of overlap between the two? And if I were to hold only these # ETF's can you also explain why you wouldn't include another international exposure ETF? I believe ZNQ is currency hedged which usually means higher fees. Is there another option to ZNQ that isn't hedged with a lower MER?
Thank you for your service.

Q: Could you recommend a few CAD etfs for the US market/SP500/Nasdaq that do not require to be reported on form T1135 for an unregistered account over $100K? Thanks in advance.

Q: Thank you for your answers of Aug 26th where 5i recommended: XLK,XLY.XLV, XLU and XLI. Could you pls provide hedged CND etfs for each of these?

Q: I hold ZQQ for tech exposure. It has grown 33.8% over the last year. I've noticed that RBF619, a Life Science and Technology fund, has grown 39.9% over the same period even with a much higher MER - 0.94% vs 0.39%. I assume this is due to the life science component in RBF619, including high performing stocks like Lilly. Would you switch ZQQ to RBF619 or are there other alternatives that provide a better tech return than ZQQ.

Q: The above holdings are in an RESP that won’t be required for at least 7 years. For new money, which sectors to add and a couple of suggestions please.

Q: Hello, I bought ZQQ on 25 January 2021 for CDN $96.79/share. Its price on 26 April 24 was $27.73/share which is 28% gain. My understanding is ZQQ owns QQQ and is CDN $ hedged. QQQ had gain of 42% in US$ for the same period. Exchange rate (US$ to CDN$) for the same period had 7.6% gain. I expected ZQQ return to be roughly QQQ gain minus gain due to change in exchange rate (because it is hedged) which would be 42% - 7.6% = 34.4%. Why ZQQ return is 28% and not close to 34%.

My broker statement shows ZQQ declared dividends and shows DRIP for the same amount as dividend. There was no change in Cash balance and no change in ZQQ shares. What happened to the dividend and DRIP? Broker statement shows cost base of ZQQ went up by the same amount as dividend. This is in my TFSA. Can you please explain what is going on here. Thanks.

Q: I have a RESP for 3 grandchildren under the age of 11.
Would you please suggest 3 or 4 stocks to add or swap with any in the above group. Would prefer a bit more growth. Thank you

Q: With recent gain in tech sector, are you concerned with valuations getting stretched. Is there some kind of euphoria being building which draws some parallel to 2000 tech bubble. Like 20-30% jump on META, NVDA, SMCI, ARM. Is there a suggested to mitigate risk while maintaining decent exposure. Thanks

Q: Hello 5i,
I am up 56% to 90% on the MSFT, JPM, MRK,ABBV, AND PEP amongst a few others. It has been said to take profit if a holding is up 30%. I have held these for about 20 years and do not need the funds. Should I realize the 30% profit or let these continue to rise according to your advice of "letting the winners run" before a black swan occurs.

Q: I understand that ZQQ is hedged to the Canadian dollar. Does that mean that the share price is unaffected by a decline in the C$ relative to the US$? If so, then presumably you don't want to be hedged if the C$ is rising relative to the US$. Is there an un-hedged version of ZQQ? Or do I have this backwards?

Q: Have a small position in ZQQ and an almost full in HXQ. For an RRSP which would be your choice of those 2? or another?

Q: Over the long run these two technology ETFs show comparable returns. However while ZQQ has significantly outperformed RBF1030 over the past year, the trend has reversed over the last month. RBF 1030 has a higher healthcare component than ZQQ and recent healthcare news (diabetes, weight loss drugs) seem to be driving it forward while stumbling tech shares recently are holding back this component. Given the big run up in technology over the past year, do you think RBF1030 with its higher healthcare component might be safer or provide better performance over the next year or so.

Q: ETF to invest in AI in Canada .

Q: I would like to dip my toe into the AI waters using an ETF several of which you have mentioned. Unfortunately they are all on the NYSE.Am I wrong, as a Canadian, in avoiding the NYSE for fear of endless red tape and possible US taxes? I assume that there are no AI ETFs on the TSX or you would have mentioned them, I may have missed them.Thanks in advance and for all your great work.Rick

Q: Hi Folks,
I have come across ZQQ and XQQ. What do you think of me adding one of these to my RRSP account. I would like some exposure to Tech and this seems like a simple way to do it OR would it be better to buy the individual companies themselves?
Thanks

Q: Is it too late to get into a NASDAQ ETF or do you think it will continue to go up?

Q: Good afternoon,

I am starting a RESP for our grandsons: one born in 2021, the other born in 2023.

To maximize the CESG grant I contribute just over 2500$/year.

How would you suggest to invest the funds ? 2 or 3 index funds?
Would you include a NASDAQ -100 index fund such as XQQ, ZQQ or HXQ or even XIT (Canadian tech ETF)?

I would appreciate your guidance.
Kind Regards

Q: Hi,

I'm looking for a CDN growth/tech ETF and I was astonished to kind TLF has a dividend of 6.5%?? And TXF has a dividend of 15.6%?? Is this true and is it safe?

I don't understand why growth ETFs would have dividends like this? Of the 3 ETFs mentioned, which would you recommend?

Q: Hi 5i,
3 questions I believe, so please deduct accordingly:
In each of the following groupings which name do you see as having the largest gain (dividends and capital gain) after a three year hold and, if you would, brief reasons for your choices. Also, if any seem to you a bad idea to buy and pay little attention to for three years, please say so,
1. BIR; ARX; CNQ
2. NWC; EMP.A
3. ZQQ; TXF
I look forward to your thoughts. Thanks.
Peter