Investment Q&A

Q: I have a non-registered account, with 8-10 years before the funds are needed. To minimize tax, we would like focus on 100% capital gains, if possible. Can you recommend some ETFs or individual stocks? We have been looking at Horizon's corporate class ETFs. Thanks for your continued excellent non-biased reports!! Grant

Q: Can you recommend Horizons Corporate Class ETF ? Are volume large enough?. Thanks. Martin.

Q: Good morning,
This is a follow up to one of my previous questions re: Horizons Total Return Index ETFs and more specifically HXT:CA and HXS:CA that I intended to purchase as long term core investments in my grand childrens' in trust accounts prior to recent proposed changes in the recent federal budget affecting the favourable tax treatment of Horizons Total Return ETFs (No distributions).
It is my understanding that Horizons ETF Management Canada plans to soon (end of Nov 19) restructure HXT-CA and HXS.CA along with several other of their ETFs into Corporate Class funds.
Given that one of the main benefits of Corporate Class funds is its ability to minimize and defer taxes, would you consider these Corporate Class funds and the Horizon Corporate Class funds in particular, to be a suitable long term hold investments for my grand children's non registered in trust accounts and if so would you please provide a few recommendations?
Thank you for thoughts on this.
Francesco

Q: Good morning,
This is a follow up to my previous question re: Horizons Total Return Index ETFs and more specifically HXT:CA and HXS:CA that I intended to purchase as long term core investments in my grandchildrens' in trust accounts prior to recent proposed changes in the recent federal budget affecting the favourable tax treatment of Horizons Total Return ETFs (No distributions).
I'm still searching for a few great investment ideas that would be suitable as a long term hold in my grand children in trust accounts. IWO and QQQ were mentioned as potential candidates given their relatively low distributions but given that the in trust accounts are already set up to hold investments in CDN $$$ and to offset currency risk, could you please recommend three or four ETFs, stocks or combination thereof that distribute little or no distributions and that you believe would be suitable as a long term hold in my grandchildren in trust accounts. My intention is to invest approximately $50K in each in trust account. I thank you in advance and look forward to your specific recommendations.

Q: Since the tax benefits for HXT, HXQ, HTB, HXS have or will be diminished, is there any reason to continue to hold them or should we be switching to other etf's, is so which ones would you recommend?
Thanks for your service.

Q: With the recent budget news on taxation of this ETF. Do you know how the distributions will be taxed? Capital gains or dividends?

Q: Hi
HXT does not pay a dividend CDZ does pay a monthly dividend.

I do not know or understand why one would buy HXT over CDZ.

Could please explain this in way grandmother would understand. how HXT works

Thank you

Mike

Q: I was comparing performance of these 2 ETFs and I was expecting correlated graphs.
After all, they track the same index. On 10 years the difference is huge.
All I could find is HXT prospectus talks about Total Return, while XIU doesn't use this phrase.

Q: Good mornng,
Thank you for your prompt and very helpful answer to my question re: Mutual funds/ETFs that do not pay any DISTRIBUTIONS and only generate CAPITAL GAINS.
As a follow up to your general HORIZON Total Return ETFs recommendation, what are your thoughts in terms of appropriateness if I were to split the amount to be invested in each of my minor grandchildrens' Non Registered in-trust accounts as follows: 50% in HXS.CA and 50% in HXT.CA? Your comments/thoughts on these specific ETFs would be most appreciated. Feel free to recommend other ETFs as need be . Thank you.

Q: Hey there guys. Wondering about appropriate allocation for my rrsp for longterm holdings (using etfs). Focused on low cost, and good diversification, geographically especially. Keeping in mind my tfsa will be almost exclusively Canadian stocks and ETFs. So for the rrsp 50% VTI, 40% SPDW, 10% HXT. I know spdw holds a bit of Canada too. Thanks for your amazing work, it is very much appreciated,
Jer in Ottawa

Q: I manage a portfolio for my mother and I am looking for an investment which will NOT generate any income (Interest or Dividends). This will be about 20% of her portfolio and reside in a non Registered account. I have come up with the two ETF's above to provide diversification in both CA and US. Would there be better alternatives I could consider in individual stocks or other ETF's. All other investment's are in TFSA and RRIF accounts and she will never need the capital. So this is a long term investment.

Q: my wife currently has unregistered money invested in this mutal fund and continues to put money in it every month. I would like to know if there are etfs that are just as good or better with much lower fees. Thanks for your help.

Q: Hi, I have my portfolio distribution
10% in a short term bond (RRSP)
50% in XUS (Registered)
25% in HXS (TFSA)
15% in my Non Registered Account (HXT).

Is it time to move to a more definsive strategy. I am thinking of shiftin about 30 % in the likes of BCE and another 20% to short term bonds. Would you be ok with this?

Thanks

Q: I have a sizeable position in the Mawer balanced fund in my non-registered account from the sale of house a couple years ago. I have treated this as a standalone portfolio so that should I decide to use the funds for a large purchase such as another house, I do not need to make a larger number of trades to rebalance my main portfolio.

As I do not anticipate using the funds for a number of years, I have been considering replacing MAW104 with Horizon's swap based ETFs to defer any taxable income and create a balanced portfolio from the 5 funds. My thought is that over a number of years the tax savings and reduced MER may outweigh the potential returns of the actively managed fund.

My main reservations in proceeding are the liquidity of these ETFs through an economic downturn or major market sell off, and with the solid long term returns of the MAW104 fund, is there really much upside in making the switch?

Appreciate your thoughts.

Q: not really well informed regards swap-based ETFs, but would appreciate your thoughts regards HXT; appears to have performed reasonably well and offers tax advantages

Q: I was thinking of taking a position in KXS and hxt etf this week. Would you buy or wait.
Thank you.
John

Q: Would you have any issues with these swap based etfs?
Should I have any concerns?
if the other party were to have issues?

Q: In a reply to Elizabeth about suggested well diversified ETFs in a non-taxable account question, (posted morning of Jan 20th), you mention that HXT avoids a dividend tax liability by increasing its NAV rather than distributing dividends to shareholders. Wouldn't the Dividend Tax Credit look after the issue - or is there something about ETFs that doesn't make dividends eligible for the credit ?

Q: What etf (or more than one) do you like to cover the broad Canadian market? There are so many, and they are so overweight in financials and resources. I would be most interested in one that has a lot of holdings, but welcome your opinion/advice if you think a smaller holding is more appropriate. This is for a non-registered account, so tax-deductible investment ideas are welcome.

Q: Peter, as I build up new cash balances to invest, I need to resist the temptation to keep buying new stocks but, rather, to add to existing positions - simply to avoid to point where I'd have 80 or more stocks! I have an account that currently holds modest positions in Exco, K-Bro, and Tourmaline. With a 5-year time frame, which of those three would you expect to produce the best total gain? Or, since the account also holds the Horizons ETF HXT, would you be inclined to prefer that broad basket (although, obviously, diversification is not my concern!). Thank you.