Investment Q&A

Q: I currently own a 3% total portfolio in international markets. I plan to raise my total international exposure to 10% from new money available. Do you think it is safe to do so. My U$ exposure is at 42%. No bonds, 7% in money markets.

I currently own XIN and ZWE for distribution. Is there overlap between VI, XEF and XIN? How would you proceed? Can you rank and propose what my options are among these ETFs with the % you would allocate to each 2 or3 ? I don't want EMs.

Thank you for your precious help. You've made me wonders since I use your services.

Yves

Q: What do you think of AIM1517 for international exposure?

I have a couple of mutual funds left in my RRSP that I bought YEARS ago. I’m trying to decide if I should keep them or replace them with an ETF(s)? I currently hold XEC and XEF for international exposure. Is it worth keeping AIM1517 for international exposure, it’s 60%+ US stock so not sure how international it really is. Would something like XEC and XEF make more sense and provide better overall results? Is there a better ETF(s) I should be looking at for that goal?

Q: Hi

What would you prefer among XEF, ZEA, and VI for a long-term hold for international exposure ex CA and US.

Thanks
Robert

Q: Hi,
On Jan 9th I asked the following question
Q: can you tell me 1) if there is any difference in XEF and ZDM in terms of tax efficiency and 2) which accounts are best to hold these ETFs in in terms of tax efficiency (please rank from best to worse) ?

You answered the first part but not the second part. 2) Could you please rank from best to worse in regard to tax efficiency, which account (e.g., RRSP, TFSA, nonregistered) is best to hold them.
Thanks

Q: can you tell me 1) if there is any difference in XEF and ZDM in terms of tax efficiency and 2) which accounts are best to hold these ETFs in in terms of tax efficiency (please rank from best to worse) ?
thanks

Q: https://www.rbadvisors.com/insights/4-for-24-year-ahead-outlook/

RB advisers recommend the following 4 themes for 2024 and as a value investor I am looking for ETF recommendations:
(1) US small caps: I am using XSU (100% IWM)
(2) US cyclicals: I found IYC but P/E is 27! Recommendation?
(3) Non-US and emerging markets: I have been using XEF and ZEM. I like XEM (100% EEM) because it posts a P/E each day.
(4) Theme 4 is "Industrials: deglobalization spurs infrastructure". No idea what ETFs to use here.
Thanks for your recommendations/comments!!!

Q: I have cash to invest, mostly into ETFs and as a value investor the P/E of the S&P 500 is a stumbling block for me: 23% for IVV vs about 15% for XIU - so about 50% more. XEF has a P/E of 14.31%. The rule of 20 says P/E + inflation should be 20 or less. A hard question, but do I overlook the P/E of the S&P 500 and invest now with a long term hold or do I wait?
Thanks for your comments!

Q: I have held XEF and Vee for years and they never seem to do as well as North American market/companies.

According to portfolio analytics I need more exposure, but these seem to be drags on my portfolio more than anything. There a slight dividend, but there is overall loss on them.

Do you have any other recommendations to get world exposure but with some better growth?

Q: Hi All at 5i!!
I own both of these . Am I being a bit redundant ? If I were to sell one , which one would you suggest??
Cheers ,
Tamara

Q: Happy New Year to all at 5i!!!!! I have both of these ETFs in an unregistered account. I have held them for a while. XWD seems to be out performing XEF. I am tidying up my portfolio and am contemplating conglomerating XEF with XWD, and I would welcome your thoughts on this move.

Cheers,
Tamara

Q: I'm a bit underweight in the consumer cyclical sector and a bit underweight in my international allocation (the latter being somewhat of a chronic condition). I'm trying to make a buy decision between MG, ZDI and XEF. I already own the two ETFs and MG would be a new position. I understand that a direct comparison of a single company with an ETF is not possible and that you can't personalize sector weightings, but all else being equal, which one of these would you be most interested in today? Many thanks!

Q: I have run Portfolio Analytics and it shows that I am overweight by region in Canada (5%) and the US (10%) and underweight in International (15%). Can you suggest 3 ETFs that will increase my International exposure in a non-registered account and include some details on these ETFs (projected performance, fees, yields, etc)?

Q: Hi team!
I am considering a hybrid portfolio of either (A) 80% ETFs and 20% individual stocks or (B) 80% in an All-in-one ETF (VEQT/VGRO) and 20% individual stocks. I understand there may be foreign withholding tax considerations on the Vanguard All-in-one ETFs depending on the account type in which it's held and I'm wondering how significant this actually is.

Questions:

- Which accounts out of RRSP/LIRA, TFSA, RESP, and Non-Registered would US listed ETFs be a better alternative due to this foreign withholding tax drag?

- At what account value would the tax drag from these withholding taxes be material enough to warrant buying individual ETFs (ex. VT, VTI, XUU, XEF) instead of using an all in one fund (VGRO or VEQT)?

Trying to avoid losing 15% or more of any US/foreign dividends due to unrecoverable foreign taxes if possible!

Thanks for your great work!

Q: Do you have a preference between these 3 ETFs, or is it pretty much a draw?

Thanks.

Q: I am currently managing my TFSA/RRSP funds and some money outside of registered accounts, which are largely individual stocks. With the market volatility, potential recession and war in Ukraine, I am finding it more difficult to keep on top of the individual stocks and am therefore considering going to ETF's. I am a year away from retirement but would be ok with more risk in the TFSA/RRSP's.
Could you please suggest 5 ETF's for the registered accounts and 5 ETF's for the non-registered accounts.
Thank you,
Jacquie

Q: Hello 5i Team,

We recently settled my parents estate and the 3 sons (me included) received a fairly large transfer in the form of 5 ETFs including ZAG (9%), XEF (11%), XUS (3%), XIC (13%) and VFV (12%). This now represents almost half of the total portfolio whereas the remainder is invested in diverse stocks and some other ETFs mostly on your advice. I think you like ZAG for bonds but I’d like to ask if any of the other ETFs seem problematic to you or would you switch any with a similar focus? We also own some XQQ, WXM, IWO and VUN (all at about 2% each). Looking to retire in 10-15 years and with a pretty good risk tolerance.

Thank you for your help!

John

Q: Dear 5i team.

Further to Cyril's question where you "hand selected a few of your favs from the three portfolios", is this a diversified enough list to put a small ETF portfolio together based on? Can you suggest which ETFs may be appropriate?

I recently upgraded to include your ETF portfolios. Can you "handpick your favs" in these given the current market backdrop, risks, and opportunities ahead?

Many thanks.

Q: Hi,
I have $20,000 to top up my TFSA and wonder what would be best considering my above holdings. Should I add to any of the above or can you suggest any other stock or ETF that would be most suitable for growth and preservation. Your advice is most appreciated.

Q: Can you recommend a global ETF that trades on the Canadian exchange that includes the whole global market except for North America? I've found some that only include developed countries but would like it to include emerging markets as well.

Q: Just did a revue of my PORTFOLIO ANALYTICS and have a couple of questions as follows:
Under Fixed Income Defensive I have CBO, VGG & ZDI in my TFSA. Are these okay here or can be added to or any deleted?
Under International Allocations I have VXC, XAW, XEF, VEU & XWD in the TFSA. Are these okay as they are or shoud I be considering some changes?
Best wishes for the New Year and thanks for your great service!