Investment Q&A

Q: RE: I retired two years ago.

I hold roughly equal amounts of VUN and XUS in my RRSP. Both have performed well, and I now want to generate some cash. I’m trying to decide if I should trim both or just one? Selling VUN would reduce my portfolio risk more than selling XUS, correct? What are the pros and cons of each sell option? Thanks.

Q: With these two etf's both modeling the S&P 500 and returns since inception appearing to be only .69% apart why do they have such different pricing per unit? I assume both are treat similar in tax treatment?

Thanks

Q: Greetings 5i,

I'm looking to decrease some of my US investments and want to sell XUS (I also own VFV). I'm looking at either VIU or XEF as a replacement for XUS. Does this make sense and if so do you have a preference for either of these ETFs or would you recommend something else as a replacement?

Thank you.
John.

Q: Is there an ETF of the S&P 500 without the 35% tech component?

Q: Hello Peter and 5i Team! it is an RESP account.

A new granddaughter born this year has a tiny new RESP in her name. It started with 3 shared of IUSG, and then, realizing that commissions were a large percentage of such small purchases, we added 2 shares of ZUQ, which has no commission.

For future small contributions, I am looking at these 4 ETFs, based on 3-year average annual return. I am specifically wondering about MER vs Tax efficiency:

ZUQ: +13.44%/yr, MER=0.33%, yield=0.60%, holds US stocks directly
VFV: +13.36%/yr, MER=0.09%, yield=0.99%, holds US stocks indirectly through VOO
XUS: +13.36%/yr, MER=0.09%, yield=1.03%, holds US stocks indirectly through IVV
ZSP: +13.30%/yr, MER=0.09%, yield=0.94%, holds US stocks directly
(as far as I know, none of these are hedged)

Generally I gravitate to low MERs, so perhaps ZUQ is not the best choice.

I recall a comment on 5i that the indirect holding of US stocks means that the withholding tax is withheld when the underlying US ETF pays dividends to the Canadian holding ETF (e.g. VFV get the dividend from VOO, less 15%). So holding in a TFSA won't avoid it, whereas it would be avoided with, say, ZSP in a TFSA.

So, my question is: do the 3-yr performance numbers take all of this into account? I am guessing not... withholding tax efficiency depends on the holders nationality, sheltered status, etc.

Bottom line - which of these ETFs would you recommend for a grandchild with a time horizon of many decades, for optimal performance?

Thanks for your excellent insights and wisdom!

Q: I have only heard of EQL recently. How does it compare to XUS?

Thanks

Q: I hold many of the mag 7 and a few other upcoming AI names in my TFSA and feel i am quite exposed in that area. What ETFs would you recommend for diversifying my portfolio to avoid doubling up? Thanks

Q: What’s the advantages or disadvantages in holding an s&p500 ETF in Canadian dollars (XUS) vs holding it in US dollars (SPY)? Which would way do you recommend? Would you still recommend buying in US when the Canadian dollar is so weak like it is right now?

Q: Which one do you prefer?

Q: Do you have any concerns with someone holding these ETF’s for a 3 to 5 year time period?

Q: Which one do you prefer? Thanks

Q: I'm looking to set up an annuity type of investment for my retirement using XUS or an equal weight CDN Hedged EFT that tracks the S&P 500. Can you provide some options and their historical annual dividend payments.

Q: Crystal ball question: Would you buy XUS now or wait a little? Any other ETF or stocks you would suggest for US exposure in RIF? Much Thanks for your comments.

Q: Are ZSP and XUS also good candidates for RRIF? Are tax withholding rules on dividends for ZSP and XUS the same in RRSP and RRIF? Thanks in advance for your comments.

Q: Need to increase U.S. and Internation equity exposures in my RRSP. Current exposures are mainly from VBAL (25% weight of RRSP) and a small position in XLU, ZWU and XGD. I am considering adding SPY for U.S. equities. What do you think about this option, and what would be a good entry point? Also, what would be a good addition to increase international equity (ETF or stocks)? Knowing that you cannot provide personal answers I appreciate very much your comments. Much Thanks

Q: Morning
Which etf would you recommend for US exposure and why. Please rate them from 1-4
ZSP
VFV
VGG
XUS
Also thoughts on XEQT for all round exposure
Thank you

Q: Is there any ETF without covered call you would recommend that holds similar stocks as SMAX. Either in USA or CDN dollars. I prefer CDN dollars.

Thanks for the great service

Q: Good morning,

I own a substantial amount of MAW 108 in my Non Registered, TFSA and RRSP accounts.

After reviewing the numerous questions relating to VFV ETF and closely examining the annual performance of MAW 108 over the last 15 years, it is clear to me that VFV ETF has performed much better on the whole over a long period and that VFV or HXS would have been a better choice .

Given that there would be substantial capital gains tax incurred by replacing MAW 108 with VFV ETF or HXS ETF in my Non Registered account and therefore not an appealing option, what are your thoughts on:

Q1. Replacing MAW 108 with VFV or HXS in my TFSA and RRSP accounts;

Q2. Are there any withholding tax considerations in holding VFV or HXS in my TFSA and RRSP accounts?

Q3, Is VFV your preferred recommendation over HXS ETF, ZSP ETF, XUS ETF for holdings in a TFSA and RRSP account?

Thank you and I will await your usual sage and valuable advice.

Q: I don't have any ETF's and I would like to have one of Canadian stocks and one for US stocks. What do you think of the above etf's or could you suggest another one for each of the markets.
Thank you Dorothy

Q: I am not sure that i got the correct information but is it possible that over the last 10 years the unhedged ETFs have far outperformed the hedged ETF. If that is the case, why
Thanks, Peter