Investment Q&A

Q: I'm looking for some inflation protection via investing in REITs and came across RQI and ICF. I'm trying to determine the difference between these two. They appear to have similar holdings, yet the payout appears to be quite different. In a response to someone's question back in May you mentioned that RQI's payout is taxed quite a bit more than a Canadian dividend - even if held within an RRSP, which by the way is where I would plan to hold it. Is it the same case for ICF ?

Which would be the better buy? Or is better to stick to a similar Canadian alternative?

Q: Hi,

I would like to add an ETF/Split Share that provides a diversified REIT focus. I am also desiring income / over growth. One such ETF/Split Share is Real Estate Split Corp – RS. Are there others that could be considered and if so how would you rank each, including RS?

Thanks Len

Q: Hi 5i,
I gather from your answers to the few questions that have been asked about it that you are not great fans of IDR for real estate exposure, and my initial question is basically why and what should I be concerned about?
If I'm reading the information correctly, IDR's 10 year growth rate (2011 - 2021) is 167%, with YTD sitting at 29%. It's annual yield meanwhile is 5.60% (or more) and it is diversified through holding residential, industrial and retail REITs in Canada (67%), USA (24%) and the UK (2%).
Could one potentially do better and risk less through holding individual REITs instead of the basket afforded by IDR and, if so, which ones would you recommend for the real estate portion of a portfolio in the current economic climate?
Thanks!
Peter

Q: Hi 5i, I started my stock market investing in March 2020 in order to get 'skin in the game'. I am a daily learner whose investing personality is that of an 'individualist'. I have determined my investing goal to be for income (mostly through dividends) and growth (for capital appreciation). I have found lately that my risk tolerance feels lower due to increasing volatility, talk of market decline/crash, increasing inflation, shortages, rising rates etc. As a result I would like to cash in the individual stocks I own that have given me good capital appreciation and replace them with ETF's and/or Index Funds. Income and growth plus diversification to my portfolio is my objective here. Since I hold more than enough physical precious metals and an emergency stash in US dollars I feel I have enough insurance/hedge against a worst case scenario happening in the economy. Please comment on these following ETF's. I am also open to other suggestions you might have as well. Please note that my entire TFSA is in my brokerage account so taxes are not an issue for me. Thanks

ZCN BMO S&P/TSX Composite Index
CIC CI First Asset Canadian Bank Income Class
ZWB BMO Covered Call Canadian Banks
RIT CI First Asset Canadian Banks
ZDV BMO Canadian Dividend
CDZ iShares Canadian Aristorcrats
XRE iShares Capped REIT
XEC Emerging Markets ETF

P.S. I assign an equal dollar amount for each investment in my portfolio. The ETF part of my portfolio are for long term holds.

Q: Hi Team,
Could you suggest Canadian ETFs of the following sectors for Senior incomes :
1 /Reit 2/ Utility 3/Prefer 4/Bank/Financial 5/Energy.
Please deduct as many question credit as needed.
Thanks as always,
Tak

Q: What are some of your top value stock and ETF picks to protect against inflation during the next 1-3 years. Thanks as always.

Q: What do you think of this twenty stock dividend portfolio for a taxable account? I am focusing on high quality and it yields about 3.8% . Any changes you would make?

Q: I currently own XAW and XTR in my RRSP and looking to add some more Canadian ETFs/stocks for diversification. Have about 20 year time frame. Can you please recommend some?

Q: XRE: I've held this one in my RRSP/RIF for 11 years; however, distribution has gone down as has unit price with CV19 and would like to replace with an ETF with a good distribution. Or should I keep?

Q: In the current state of REIT is there a better choice between these two.

Q: Hi

I am retiring in the near future and am looking at increasing my income based positions. I am looking for a REIT or ETF. Can you suggest any? Currently I am not holding any.

Q: REITs are beaten down. For a long term investor who wants real estate exposure, is this a time to get in? Can you suggest (1) two or three REITs or other entities and (2) an ETF for this? Thank you!

Q: Hey 5i,

As a follow up. What are your top picks US/CDN REIT ETF's
You'd recommend for a longterm hold.

Thank you for all the great advice!

Q: Morning 5i,

Looking to diversify our portfolios
Longterm hold.
Wanting to add a real estate position(s)
Obviously we could go up or down due to covid and a rougher than expected recovery.

Looking for advice on which to do first.
ETF, such as above OR pure play such as CAR.UN?
Which is a huge portion of XRE anyways.
*your top rec's in this sector would be greatly appreciated as well.

Understanding the risks and dynamics our thought was adding an attractive pure play at lower valuation and then the reit assuming it may be depressed for a longer time period.

Looking forward to your advice and thank you for the great stuff here! The info is tremendous.

Q: My daughter is 27 years old and is looking to invest around $35,000 as her first investment. She is considering investing 40% in Canadian equities (ZLB, PDC, and XRE), 50% in US Equities (VUS and DXU), and 10% in International Equities (FCIQ and VEE).

As an initial investment, does this balance seem reasonable or would you have other recommendations? Is this sufficiently diversified or are there too many funds?

Thank you!

Q: hi 5i .. for a retired income investor, which of these three ETFs would you pick to buy today, given these market conditions, and why ... thanks!

Q: Would you buy a REIT today? What would be your top choice?

Q: Good Afternoon 5i,
Thanks you for the Market update and special report on March 9th I found it very helpful...
My Question. Is this a good time to buy Reits? I'm thinking about adding a ETF reit. Do you have a favorite Canadian ETF Reit?

Thanks


I

Q: Hello 5i, I am looking to invest in one or two Canadian real estate ETF. Can you suggest me 3 names with low cost, a good performance and low debt. Thank you! Jean

Q: If you were to choose between the 3 above. How would you rank them in terms of security (first and foremost) and total performance for a 3-5 year hold?

Thanks to all for your fantastic service and a very successful year in all your endeavour.
Y