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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: Good day!

I've noticed a trend with respect to your recommendations for RESP ETF holdings with a longer timeframe (10-15yrs). You seem to like VGRO +/- IWO. I'm looking for growth and can tolerate risk. Currency doesn't matter.

VGRO has a 19.9% weighing of bond ETF's and the rest are a combination of other vanguard ETF's. In looking at performance since its inception, it lags behind IWO which often lags behind the S&P 500 ETFs. From a non-expert viewpoint it would seem that a combination of large and mid cap US/CAN ETF's would achieve similar purpose and improve returns by eliminating the bond component.

1. What am I missing re VGRO? is it that the bond component satisfies the usual 80/20 combination as an all-in-one and is simply easy?

2. If you were to improve the 'all-in-one' VGRO using a combination of ETF's, which US/CAN growth/index ETF's would you assemble to eliminate the bond component? Perhaps a combination of XIC, VFV/ZSP/VOO, VTI, VUG, ZQQ or others you think work better?

3. Out of the S&P 500 ETF's, do you have a preference between ZSP or VFV? Is there an advantage to holding the US listed SPY, IVV or VOO vs the Canadian-listed? and if so, which do you prefer?

4. If you were to devote 25% of the RESP to high potential equities, which would you choose?

Thanks!
Read Answer Asked by Bart on October 20, 2020
Q: Looking to Mr. Buffett's behaviour in the past, he seems to be investing in whole industries, like airlines and most recently with the Japanese trading houses.

Do you think taking a similar strategy works in select Canadian industries as well?

For example:
Buy and hold all the Big 5 Canadian Banks (BMO, BNS, TD, RBC, CM)
Buy and hold all Major Grocers (Empire, Metro, Loblaw)
Buy and hold all Major Telecoms (Rogers, Telus, BCE)

Or do you think there's a better way to mimic this through an ETF?
Read Answer Asked by Eugene on October 20, 2020
Q: What are your thoughts on IRM?
It seems like a stable recurring and loyal customber-based business and they are branching out into data centre businesses as well with their reputation for records management.
Interestingly I note an 18-20% short interest - could this lead to an asymmetric upside potential if their business improved due to a short-covering rally?
I do love the dividend as well and hope it's sustainable.

Read Answer Asked by Neelesh on October 20, 2020
Q: Can I get your thoughts on the valuation of the healthcare industry? Could you provide a few picks on dividend paying healthcare stocks?

Thanks,

Joe
Read Answer Asked by Joe on October 20, 2020
Q: Hi Peter
for a TFSA account, would Bep.un be preferred to Bep.ca ?
I am going to start a partial position

In a RRSP account, which one would you prefer ?
I got some shares of Bepc from a spin out from the Bep.un in the RRSp
should I leave it as it is or which one do you prefer; if a switch is needed for
long term hold

thanks
I am retired

Michael
Read Answer Asked by Michael on October 20, 2020
Q: Hi 5i team,
Rogers and Altice are back again with a higher offer for CGO and CCA. The Audet family, who hold the controlling interests, have rejected it again and have stated that this is not a negotiating ploy. The revised offer will be submitted to the Boards of CCA and CGO. What in your view typically happens in hostile bids with a controlling shareholder? Does the controlling shareholder really control how these events unfold or do the minority shareholders start applying pressure to start negotiating and then it becomes merely a matter of price?
Thanks for the insight.
Dave
Read Answer Asked by Dave on October 20, 2020
Q: Hi guys,
RE: FNGS .. MicroSectors FANG+ ETN
I came across this while researching tech ETF's.
This is the description on the RBC Direct Investing website.
The investment seeks to link the return to the performance of the gross total return version of the NYSE® FANG+™ Index. The index is an equal-dollar weighted index designed to represent a segment of the technology and consumer discretionary sectors consisting of highly-traded growth stocks of technology and tech-enabled companies. The notes are unsecured and unsubordinated obligations of Bank of Montreal. Each note will have an initial principal amount of $50.
BMO Investorline does not have it in their menu.
Please give me your insights and opinion on this product.
Thanks as always,
Steve

Read Answer Asked by STEVEN on October 20, 2020
Q: Can you please explain what this means & why it is impacting the price? Thanks!
Vaxart (NASDAQ:VXRT) is down 6% premarket on increased volume. Shares have sold off over 20% since last week after it disclosed a $250M at-the-market stock sales deal with Jefferies.
Read Answer Asked by Austin on October 20, 2020
Q: My wife and I are 80 years old and we live off the dividends from our RRIF's which are totally invested in stocks as well as the CPP.
Looking ahead my wife who has not been involved in the stock market would have a difficult time managing on her own. With this in mind I am contemplating going from stocks for some or all and switching to ETF's covering the different market segments making a passive portfolio that would require little maintenance . Appreciate your thoughts on this strategy and what would be your favourite ETF's by market segment. Looking for approx 4% or higher dividend with little or moderate growth.
Regards

D


Read Answer Asked by Wayne on October 20, 2020
Q: CSU.DB:CA : fell almost 5% this morning, albeit on low volume. trivial . Such a drop is extremely unusual for this security. I do not follow Canadian markets and am wondering if this price drop is consistent with price changes in other similar interest sensitive securities this morning. Are you aware of any reason for such a drop? (I am restricted from CSU and SHOP common but have a large position in the debentures)
Read Answer Asked by Adam on October 20, 2020
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