Investment Q&A

Q: I hold XQQ in my RRSP. I read it is better to receive US dollar dividends via a NYSE ETF. ( tax free treatment ). Can you suggest a similar ETF to replace XQQ ?

Q: Hello 5i team,
Could you give a few ETFs and/or Mutual Funds about Science and Technology and one that tracks the Nasdaq in CAD$ or US$
Thanks,
Antoine

Q: Peter,

What ETF's are available in both Canadian and U.S. dollars that track the Nasdaq 100.
Thank you
Paul

Q: 5i, In my RRSP I have some cash, and not sure if I should go with XQQ or QQQ, will you please explain pros/cons and advantages or not, also I' m open to other suggestions.
Thank you!

Q: Hello 5i,
I'm considering swapping xiu for xqq inside my RRSP, would you consider at this time a good move, pros/cons I need to be aware of?
Thanks
f

Q: Hello Peter and co,
Thank you for your excellent advice. My grandson has opened a TFSA over the last few months, and now holds the following stocks (listed in order of value, largest first). He is in the enviable position of being up on every one of his positions, in part thanks to your wise advice (and some lucky timing)! With a bit of cash (~$2300) remaining to invest, he is looking for a recommendation, targeting growth and diversification.
He is considering these: LSPD, JPM, CAE, MDT, VET, PXT
But we would be more interested in hearing your advice, so please feel free to ignore the list above, and make a suggestion for 1 or 2 stocks to add.
Thanks,
Ed.

Current stocks:
XQQ
GSY
VFV
SHOP
CSU
REAL
KXS
BYD
BEP

Q: Can you comment on these ETF's I presently hold in a corporate unregistered acct. I have a large amount in DVY.US - not sure why (previously with a FI ) Looking to update this portfolio based on present times. In At least a 5 year hold. Please take as many credits as needed.
Thanks so much.

Q: With the level of debt monetization, fiat currencies are becoming concerning. I was considering contributing new money into my TFSA, but transferring the funds to a US TFSA, and investing directly into US securities instead of CDN.
Even with getting hit with the currency exchange rate and paying applicable withholding taxes within this account, would you recommend this or see any advantage to this, or would you prefer investing in Canadian hedged funds (i.e XQQ vs QQQ) instead?
Many thanks,
Tom

Q: Hi There,
Just curious if I could get your opinion on the following funds MAW130, XSP, XMS and XQQ. I am looking to invest some money outside of Canada with some decent balanced/growth potential.
Could you please list in order of preference with the first being the most favorable.
Thank You,

Q: I would like to purchase QQQ but in Canadian funds and not hedged. I think that QQQ.F.CA or XQQ are options. But I notice that QQQ shows about 10% better price increase over the last 3 years than the CDN options.
Are there other pros and cons of purchasing say XQQ instead of converting my cash to USD and buying QQQ?

Q: Good day team, with current environment for context, and looking at tech/big data companies: Are there etfs (Canadian but with CDN/US/Global exposure) that cater to broad based tech. I feel once we are out of this, technology will play an even greater role in our lives and in industry, healthcare, security etc etc

Q: Considering a 5 year time frame, what would be your allocation toward cdn oil (xeg), cdn ag (ntr), utilities (zwu), fixed income (hfr) and US (zwa & xqq). Above average risk tolerance seeking yield and capital gain. Are there any other suggestions....LSPD would also be a holding. thanks.

Q: Good morning, stay safe and keep up the good work.
My question is on hedged vs unhedged funds.
My son is 27 and his time horizon for any investment is long term.
Now that our Canadian dollar trades at an all time low against the USD, (last time we hit similar lows was in 2016/2017) and the chances that our CAD trades lower are relatively slim, wouldn't it be preferable to invest in a hedged fund version of the Nasdaq-100 indexed ETF. The reason being is that the return of an investment in a USD equity (when converted back to CAD) decreases in a strengthening CAD environment. On the flip side, in a weakening CAD environment, the same USD investment's return, when converted back to CAD, would be increased.
To recap: My assumption (might not be a valid one) is that our CAD can only increase in value against the USD. In this strengthening environment, isn't it better to purchase a hedged ETF ?

Q: Hope everyone at 5i is doing well in these times!

I have been sitting on mostly cash in my RRSP/LIRA and would like your recommendations on the best ETFs to consider for my full US and International exposure. All of these would need to be listed on the TSX as I am purchasing in CAD $. While I know you prefer non-hedged, I’d greatly appreciate if you could explain benefits/workings of hedged vs. non-hedged considering the current environment. And provide ETF recommendations for each.

I am looking to achieve a balance of diversification, reasonable MER, minimizing any withholding tax while optimizing the potential in market recovery. For US, I would like to have a technology ETF, health care ETF and a broader spectrum ETF – but also open to ideas. Also, looking for recommendations on International – one broad ETF or perhaps that and a mix of ETFs. I recognize there can be overlap (e.g. between a tech and broad sector fund), so if you can give me a sense of the degree of duplication that may be present in your recommendations. Perhaps going heavier on tech right now could be a good thing.

While I started off thinking ETF selections would be relatively simple, in reading various Q&A there seem to be many important considerations - your assistance is appreciated. Again, all of these are being purchased in RRSP/LIRA accounts with the goal of optimizing my returns over a 10 year window.

Q: Is this a good time to buy XQQ and what does the -9% cash/derivative component of this ETF mean?

Q: Which best bang for the buck should a retiree look at when looking for some US exposure through ETFS, for the future recovery, I have no US exposure as of now and would like to take advantage of the downturn, I get by on the pensions I have.
Thank you.

Q: The ETF Portfolios tend to indicate a preference for CDN Hedged ETF's. (XQQ; XHC). Do you still prefer CDN Hedged ETFs today? Can you suggest non-hedged alternatives?

Q: First off I just want to say thank you so much for your special report you issued last week. For a young investor like myself who has never been through events like we currently are experiencing your advice has been extremely valuable to help navigate these uncharted waters.

I have been sitting on some cash and would like to increase my technology (both Canada and the US) exposure as it is low right now. I am comfortable with moderate risk. I have a few questions on this subject so feel free to subtract as many credits as you see fit:
1) For Canadian tech companies, after reading your special report and the Q&A's, it seems you like CSU, KXS, DSG, and SHOP. Would you recommend buying these individual companies (or others?) or would XIT be a reasonable alternative with these 4 companies composing ~61%? Or is there another tech etf you would suggest?
2) For US tech companies (or any US company for that matter), with the Canadian dollar being low, would you recommend looking at specific US companies or a Canadian ETF that holds US tech companies? I am worried the exchange would eat into possible returns. Do you have any recommendations (e.g. I have seen you mention XQQ for an etf, SKYY highlighted in etfupdate, and companies like MSFT, GOOG, TEAM, etc)?

Thanks for all that you do.

Q: Hi,
Multuiple questions here, please deduct the credits you think are appropriate.

1) Can you please explain when it makes sense to hold a hedged version of an ETF
2) If one holds a Canadian ETF with US holdings, how does taxation work? Does it change whether they are held in a cash acct, TFSA, or RRSP and how?

Q: What Canadian ETF would you recommend today for covering the Nasdaq including the FANG stocks?

thanks
Paul