Investment Q&A

Q: In your response to Francesco on March 13, 2024, you indicated that HEQT is 34% US but I think that is only the large cap portion. Also, previously you noted HEQT had 65% US exposure. A plot of historical trends of XWD and HEQT show almost identical plots. Did I miss something? What are the MERs?

Q: Good morning,

In one response to a question on the choice of a International exposure ETF, the 5i preference was VEQT, XEQT and XWD in that order.

Q1. Has you opinion of the order of these Global ETFs changed in any way and given XWD's 5 and 10 year performance?

Q2. Would you kindly explain your rational for ranking XWD ahead of VEQT and XEQT and even HEQT.

Thank you in advance and I look forward to hearing your response.

Q: Good morning,


I am not crystal clear on the most tax efficient account to hold each of the above listed ETFs and before moving any of them to another type of account, I would very much appreciate your guidance on the most tax efficient type of account to hold each of the above listed ETFs.

The above listed ETFs are all held in our family Registered (RRSP/TFSA/RESP) and Non-Registered accounts.

Thank you and I'll await your sage advice.

Q: My question yesterday did not seem to go through as it did not show up in "My Questions".
In reading your newsletter "What Investments to hold in your TFSA or RRIF" - I hold the above 4 ETF's in my TFSA and was wondering if they should be in this account?
I interpret your information as they should not be in an TFSA.
Thanks

Q: I have the above ETF's in my TFSA and am wondering if these belong in a TFSA? On reading your newsletter "Investments to hold in your TFSA" , I interpreted this to mean they do not belong in the TFSA. Am I right?
Thanks for your response.

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: Hi there, there are many "all in one" etfs to pick from these days. If a person wanted to have a super simple portfolio, what would be your favourite (or the best) ETF to hold to gain 100% equity exposure that would require the least amount of maintenance? I know there is XEQT, VEQT, XAW, VXC, XWD, HGRO and many more. What would be your favourite? (Does not have to appear on the ones I have listed)

Thanks!

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: Would like a current opinion on this mutual fund?
Is the fees worth the returns or would a global ETF perform better?
Greatly appreciate your opinion.

Q: What do you suggest using as a benchmark for sector allocations? I have been looking at global market sector exposures using the iShares MSCI World ETF (XWD). I also saw the Vanguard Total World Stock ETF (VT), which I believe has more small-cap exposure than MSCI World. If the global market is a good base to use, do you see any reason to deviate from these exposures at the moment?

I assume I shouldn't look at regional exposures the same way, the global market is heavily weighted toward US (60-70%). Would regional exposure for something like VGRO (equity only - US 43% / Canada 30% / International Developed 20% / Emerging 7%) be a good benchmark?

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!

Q: My 25 years old son is starting a portfolio by buying all equity ETFs XSP (30%), TEC (30%), and XWD (40%) in Canadian dollars, which he intends to hold for a long time. 1. Is the selection of ETFs OK ? 2. Are there better alternatives in performance and fees? 3. Is the allocation OK? 4. Do you have any suggestion? Thanks.

Q: I am looking to finally replace the following mutual funds held in a self admin RSP account, to equivalent ETFs.
FID269 - Fid Monthly Inc;
FID5973 - Fid Global Innovation;
FID207 - Fid Global Concentrated Equity;
RBC460 - Sel Bal Ptf
TDB2760 - Td Retirement Balance
TDB652 - Td Global Entertainment & communication
TDB976 - Td Health Science
TDB2580 Td Tactical Monthly Inc
My goal is to replace these mutual funds with long term, high yielding where possible, low MER, CDN or US $ equivalent ETFs. Please provide 2 or 3 suggestions for each. Please deduct as many credit s as need.
Thank you for all the invaluable investment help you provide.

Q: Looking to park cash in a CAD ETF, inside spouse RRSP, until balance gets up to a reasonable enough figure to start buying individual stocks. Recommendations?

Q: My 35 year old daughter would like to start investing 150$ a month in an ETF. She would like to set up an automatic monthly transfer to an institution , any suggestions? thanks, JEan

Q: hi, What yours thoughts for those Fund for 2/3% portfolio?
is it to expensive?
thanks jean guy.

Q: I have seen many articles in which advisors recommend all-in-one portfolios as core holdings. I understand the value of these portfolios given the rebalancing effect, when there is a mix of bonds and equities (e.g. VBAL, XBAL). However, I do not understand the benefit of the all-equity, all-in-one portfolio (e.g. VEQT, XEQT) compared to an all-world equity ETF (e.g. XAW, XWD). The all-equity, all-in-one portfolios are overweight Canada vis-a-vis global market capitalizations. It seems to me that the all-equity, all-in-one portfolios are "betting" that Canadian equities will outperform the rest of the world. Yet, most articles I read suggest the opposite, and recommend that Canadians invest increasingly internationally (in fact, I can not recall in the last few years any article suggesting Canadian outperformance).

It seems to me that the all world ETFs (XAW, XWD) are a better bet, but I am concerned that I am missing something given the popularity of the all-equity, all-in-one portfolios. What do you see as the advantage of the all equity, all-in-one portfolios over the all world all-equity ETFs? Why do major firms such as Vanguard and Blackrock have a Canadian overweight in their all-equity, all-in-one portfolios? For a long-term core equity-only holding, do you recommend the all-in-one portfolio (e.g. VEQT, XEQT) over the global equity ETFs (XAW, XWD)? Is there any other ETF you would recommend instead?

Many thanks for your excellent advice.

Q: Recently, a number of firms have brought out All-in-One ETFs, such as VEQT. If an investor wishes to be 100% invested, and diversified globally, then this ETF offers the advantage of rebalancing to the ETF's geographic weightings. These All-in-One ETFs are overweight Canada given global market capitalizations.

In contrast, there are ETFs offering similar low fees which represent the market capitalization of all global equities, such as XWD or VXC (w/o Canada). These ETFs are effectively rebalancing to reflect the global market capitalizations.

For a long-term hold, which investment do you feel will do better? Is an investor better off choosing say VEQT, or VXC? These two ETFs have similar ETFs. Is there a better alternative which you would recommend?

Your insights are much appreciated and valued. Thank-you.

Q: I am helping my niece set up with ETF. She is holding the below funds right now. Can you please advise their fees and which ETF would you suggest replacing them with? Is there a site where you can check the mutual fund fees and performance?

PH&N LifeTime 2045 Fund
RBC Canadian Equity Fund
RBC Balanced Fund
BLK Balanced Index
Capital Global Equity
BLK US Equity Index

Thanks for your help
Hector

Q: I bought SDIV about 3 years ago and am down significantly (about 50%). Dividend income has been consistent but not enough to offset the loss in capital. Do you have a better recommendation in this space? Or do i continue to hold for the long term? thanks again! John C