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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

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

Read Answer Asked by Tamara on January 04, 2023

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!

Read Answer Asked by Mark on October 03, 2022

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)?

Read Answer Asked by Don on September 07, 2022

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!

Read Answer Asked by Davin on August 29, 2022

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

Read Answer Asked by Jacquie on June 02, 2022

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 Id 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

Read Answer Asked by John on May 10, 2022

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.

Read Answer Asked by Arthur on March 30, 2022

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.

Read Answer Asked by Penny on February 22, 2022

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!

Read Answer Asked by Terry on January 11, 2022

Q: Hi, Happy new year!!

When looking at the long term rates of return of Emerging markets, developed INTL markets, Canadian and US stocks, the US has outperformed by a mile. I hold mostly stocks that are Cdn and US and I have global international and developed exposure through the mentioned ETF's, which only account for around 6% of my total portfolio. My questions are:

1. What is the simplest way to break down portfolio exposure without getting too overly complicated and detailed? Currently I break it down by where they trade. But for example, I hold stocks such as BAM, SLF, GOOG, JPM, V which are more global. How would I go about classifying some of these stocks? Would I allocate some % of these towards international exposure based on the company revenue breakdown, etc? any other metrics? Any good sites that easily summarize this info. or do I need to go looking through the companies financial statements?

2. Is there any mean reversion long term between CDN, US, INTL, and EE markets? So since INTL and EE has underperformed so much lately, is it time to rebalance equities from US to CDN/INTL/EE? Or for a long term growth investor, is the US still the best place to invest for growth whereas INTL/EE look cheap and have better value, although slower growth? Thoughts?

Read Answer Asked by Keith on January 04, 2022

Q: Hi, currently holding these Cad ETFs in RSP. What would be the best equivalent ETF's to buy in the US if I were to convert my holdings to USD and buy the US ETF. Looking for equivalent exposure with lower MER, better tax efficiency, etc... I've included some of my choices, would these be the best ones to switch to? Other ETFs are welcome if I haven't listed them below. Thanks and Happy holidays, looking forward to a great 2022!

VGG to VIG
XEF to either VXUS/VEA/IEFA
VEE to VWO
ZUH to either XHC/VHT/XLV
VUN/VUS TO VOO

Read Answer Asked by Keith on January 03, 2022

Q: What are the Can ETFs that cover the main US ETFs, like SPY? And what are their mers?

What are the advantages of using these Canadian versions?

Do you still require W-BEN forms if you buy these?

Thanks for all your help.

Read Answer Asked by Mark on October 28, 2021

Q: I would like to exit my brokerage RRSP to a self directed RRSP and I am looking for 4 to 5 Canadian EFT's to provide balanced diversification across sectors, nations, Portfolio Analytics suggests 70 equities/30 fixed income. Other ideas you have to create a balanced diversified ETF RRSP would be appreciated.
Are there any strategies( eg time of year) to make the switch or just do it.
Thank you for your service.

Read Answer Asked by Mike on October 28, 2021

Q: I have an ETF portfolio and a portfolio of CDN and U.S. stocks.

I am building my ETF portfolio and plan to take my gains from my individual stocks and add to my ETF portfolio during market downturns. I don't plan on making any sales from my ETF portfolio and I expect that portfolio to provide my funds for retirement.

The ETF portfolio is divided globally and I was wondering if which order you would add since I am building my portfolio. The ETFs I have selected on XIC (30%), XEF (15%), XEC (10%), IVV (15%), XJH (5%), XJR (5%), QQQ (5%), XLF (5%) and 10% fixed income. I have already established my 5% positions in XJH, XJR, QQQ and XLF over the summer.

My questions are:

1 - I know weighting is personal, but do you have any glaring concerns with my weightings?

2 - In which order would you add to XIC, XEF, XEC and IVV?

Thanks for your help,
Jason

Read Answer Asked by Jason on September 27, 2021

Q: Considering the fact that developped markets other than Europe are rare and that there is obviously overlap in the two. What is the advantage if one on using XEF over XEH for diversification purpose. What other countries are included in XEF? Which would you choose?

Read Answer Asked by Yves on September 10, 2021

Q: I have cash for a new full position. I run an mix of your balanced and income portfolio for my cad exposure. Of the above names which would you add a full position right now. I am also considering just batting for the average with SPY or XEF. balanced shifting to income follower, 5 year window looking for good entry point into one of the names above.

Read Answer Asked by Tom on September 09, 2021

Q: Currently our portfolio is 15% too high in Canadian stocks and ETFs and am
needing to add to International I would appreciate 3 stocks or an ETF that would be the highest on your ratings. Thanks!

Read Answer Asked by diane joan on July 30, 2021

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

Read Answer Asked by Timothy on May 25, 2021