Q: Is there one REIT that would be affected less by rate increases or a market correction and do REITS qualify under the dividend tax credit.Thank you
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Investment Q&A
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- iShares S&P/TSX Capped REIT Index ETF (XRE)
- iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: I am 53 years old. I have worked 31 years in my Federal Government job, making $100,000 + a year. I will have a defined benefit pension. Currently, I have a $200,000 in an RRSP, self directed,with 100% in equity divided 60/40 between CANADIAN AND US dollar investment. I am planning to retire in 2-3 years.
With this in mind, I want to rebalance my portfolio to make it more conservative. What ETF funds/percent allocations do you recommend to build the fixed income/bond portion of my portfolio both on the Canadian and US side of the house? What funds should I buy (Canadian and US) and how much should I buy of each?
Thanks in advance.
With this in mind, I want to rebalance my portfolio to make it more conservative. What ETF funds/percent allocations do you recommend to build the fixed income/bond portion of my portfolio both on the Canadian and US side of the house? What funds should I buy (Canadian and US) and how much should I buy of each?
Thanks in advance.
- Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
- Artis Real Estate Investment Trust (AX.UN)
- Chartwell Retirement Residences (CSH.UN)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
- BTB Real Estate Investment Trust (BTB.UN)
Q: Hi 5i team, I'm looking to add one more name in the real estate sector. I currently have BTB Reit, Artis Reit and the etf XRE. Could you please suggest a few ideas. What are your favourite reits at this time and would you replace any of my current holdings? Thanks. Mario.
Q: American REITS are regarded as core holdings of a US income portfolio because of their growing dividend payments. (O, WPC, VTR etc.)
My question is, why don't most Canadian REITS (AAR.UN, AX.UN, HOT.UN, etc.) annually increase their dividends like the US REITS? Most Canadian REITS have been paying the same dividend for years.
My question is, why don't most Canadian REITS (AAR.UN, AX.UN, HOT.UN, etc.) annually increase their dividends like the US REITS? Most Canadian REITS have been paying the same dividend for years.
Q: Hi 5i,
Just a comment on Nino’s question and your answer about the choice between paying up for a REIT ETF like ZRE/XRE versus holding 8-12 individual REITs. My choice has been the latter and I have been happy with it. Your answer suggested that rebalancing 12 holdings annually would cost $120 at $10 a pop. My experience has been that the reality is much less than that. Because the REITs tend to move as a group more than their individual movements relative to the group, in holding 8-12 decent quality REITs I haven’t had to do more than 2 or 3 rebalancing transactions in any given year. Except for a couple of extraordinary years my REITs have really been low maintenance holdings. Cheers!
Just a comment on Nino’s question and your answer about the choice between paying up for a REIT ETF like ZRE/XRE versus holding 8-12 individual REITs. My choice has been the latter and I have been happy with it. Your answer suggested that rebalancing 12 holdings annually would cost $120 at $10 a pop. My experience has been that the reality is much less than that. Because the REITs tend to move as a group more than their individual movements relative to the group, in holding 8-12 decent quality REITs I haven’t had to do more than 2 or 3 rebalancing transactions in any given year. Except for a couple of extraordinary years my REITs have really been low maintenance holdings. Cheers!
Q: My wife and I, retirees, are considering adding a real estate ETF to our portfolio, to hold in TFSAs. You commented that ZRE has an equal weighting in REITS and is more diversified than XRE (that has a 30% weighting in RioCan and H&R). ZRE has a slightly higher distribution % that appeals. My question is on safety of capital. I perceive Rio Can and H&R to be high quality REITs versus say an Artis or Cominar that have a higher weighting in XRE. Which of the two ETFs would you consider safer, or is it a coin toss between the two? Thank you for your comments
Q: Hello 5i:
could you give me your opinion of the CEF RFI (Cohen and Steers Total Return Real Estate Fund) for a conservative investor please?
thanks
Paul L
could you give me your opinion of the CEF RFI (Cohen and Steers Total Return Real Estate Fund) for a conservative investor please?
thanks
Paul L
Q: In the REIT sector I currently own ZRE & XRE. I am moving my REITS to my RRSP due to the tax implications ( ie no Dividend Tax Credit ). 1)
1) What are you favourite investments in this sector ?
2) Do you see a need to own individual REITS as opposed to an ETF?
Thank you.
Paul
1) What are you favourite investments in this sector ?
2) Do you see a need to own individual REITS as opposed to an ETF?
Thank you.
Paul
Q: Since income trusts are taxed as income (highest tax rate), would it be a good strategy to hold them in a TFSA? and is there an ETF for income trusts?
- BMO Equal Weight REITs Index ETF (ZRE)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
- Vanguard FTSE Canadian Capped REIT Index ETF (VRE)
Q: Hello 5i team,
Which ETF is best suited for a long term hold (30 yrs) in a TFSA that will be DRIPPED and contributed to annually. I like the equal weight positions of ZRE but with a higher MER of .61% over the long term it seems the fee's could really start corroding my capital. VRE is the cheapest but also has the smallest yield and is market cap weighted. Is it possible BMO could lower these fee's in the future to stay competitive? I would eventually like to draw income from the holding.
Always appreciate the you insights
Which ETF is best suited for a long term hold (30 yrs) in a TFSA that will be DRIPPED and contributed to annually. I like the equal weight positions of ZRE but with a higher MER of .61% over the long term it seems the fee's could really start corroding my capital. VRE is the cheapest but also has the smallest yield and is market cap weighted. Is it possible BMO could lower these fee's in the future to stay competitive? I would eventually like to draw income from the holding.
Always appreciate the you insights
- Chartwell Retirement Residences (CSH.UN)
- BMO Equal Weight REITs Index ETF (ZRE)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
Q: I have no REITS in my portfolio and since I do my own taxes I like to keep things simple and did read that it better to hold REITS in an RRSP account if you don't want to be bother with return on capital, etc. I am wondering if I have no room in my RRSP would it be okay to put in my TFSA? I am looking at ZRE and XRE which one you prefer and CSH.UN or is just one index fund good enough.
Thanks
Dolores
Thanks
Dolores
- Sun Life Financial Inc. (SLF)
- Power Corporation of Canada Subordinate Voting Shares (POW)
- WSP Global Inc. (WSP)
- Stantec Inc. (STN)
- Brookfield Infrastructure Partners L.P. (BIP.UN)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
- Morneau Shepell Inc. (MSI)
Q: Good Morning 5I team, I have been building a cash position and would like your opinion on these stocks/etf to add to a mostly buy and hold dividend generating portfolio.
- Brookfield Renewable Partners L.P. (BEP.UN)
- Brookfield Property Partners L.P. (BPY.UN)
- BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
- BMO US High Dividend Covered Call ETF (ZWH)
- BMO US Put Write ETF (ZPW)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
Q: I currently hold BPY (up 50% over cost) and H&R in my portfolio 4% and 3% respectively.
I am considering swapping BPY for BEP for the additional income. Your thoughts?
I also plan to crystallize my capital losses and purchase the following ETFs:
Non registered:
ZPW – US Put Write
ZWE – Europe Covered Call hedged to CAD.
ZWH – US covered call
CPD – CAD preferred
XRE – Capped REIT
Registered (RRIF):
PGX:US – Preferred.
Each would constitute 2% - 3% of my portfolio. Diversification is my intention, but risk and surety of income is the primary consideration in all of the above noted.
Again, your thoughts.
Thank you for considering my questions
Gail
I am considering swapping BPY for BEP for the additional income. Your thoughts?
I also plan to crystallize my capital losses and purchase the following ETFs:
Non registered:
ZPW – US Put Write
ZWE – Europe Covered Call hedged to CAD.
ZWH – US covered call
CPD – CAD preferred
XRE – Capped REIT
Registered (RRIF):
PGX:US – Preferred.
Each would constitute 2% - 3% of my portfolio. Diversification is my intention, but risk and surety of income is the primary consideration in all of the above noted.
Again, your thoughts.
Thank you for considering my questions
Gail
- iShares S&P/TSX Canadian Preferred Share Index ETF (CPD)
- BMO Canadian Dividend ETF (ZDV)
- BMO US High Dividend Covered Call ETF (ZWH)
- iShares Convertible Bond Index ETF (CVD)
- iShares S&P/TSX Capped REIT Index ETF (XRE)
Q: BMO US Put Write(ZPW)
BMO Europe High Dividend Covered Call Hedged to CAD(ZWE)
PowerShares Preferred Portfolio(PGX:US)
BMO Laddered Preferred Share Index(ZPR)
BMO US High Dividend Covered Call(ZWH)
BMO Equal Weight REITs Index(ZRE)
iShares S&P/TSX Canadian Preferred Share Index(CPD)
iShares S&P/TSX Capped REIT Index(XRE)
BMO Covered Call Dow Jones Industrial Average Hedged CAD(ZWA)
iShares Convertible Bond Index(CVD)
BMO Canadian Dividend(ZDV)
Above are ranked as to yield - high to low. Can you rank as to risk - high to low?
Thank you for considering my question
G. Reynolds
BMO Europe High Dividend Covered Call Hedged to CAD(ZWE)
PowerShares Preferred Portfolio(PGX:US)
BMO Laddered Preferred Share Index(ZPR)
BMO US High Dividend Covered Call(ZWH)
BMO Equal Weight REITs Index(ZRE)
iShares S&P/TSX Canadian Preferred Share Index(CPD)
iShares S&P/TSX Capped REIT Index(XRE)
BMO Covered Call Dow Jones Industrial Average Hedged CAD(ZWA)
iShares Convertible Bond Index(CVD)
BMO Canadian Dividend(ZDV)
Above are ranked as to yield - high to low. Can you rank as to risk - high to low?
Thank you for considering my question
G. Reynolds
Q: Like others, I hold a number of REITs, mainly for income. I'm increasingly concerned how the value of these would be effected when Canadian real estate corrects.
I'd like to know how much would you expect the price of REITs (in general, ofcourse) to change if there is a hard landing for real estate in Canada (say a correction of 30%). Perhaps an estimate with respect to Industrial, Commercial and Apartment style REITs.
I'd like to know how much would you expect the price of REITs (in general, ofcourse) to change if there is a hard landing for real estate in Canada (say a correction of 30%). Perhaps an estimate with respect to Industrial, Commercial and Apartment style REITs.
Q: Hi,
I am looking to replace ZRE in my non-registered accounts with 2 - 3 REITs. I am trying to adopt a best-in-class approach, versus holding the "basket". Do you have any suggestions for best-in-class REITs, that will hopefully endure as best-in-class (versus a flavour of the month)?
Second question (please don't hesitate to deduct another credit): I am not quite sure what constitutes best-in-class but would guess a promising growth profile, strong management, manageable risks, and a reasonable distribution. Am I missing something? What do you look for or consider important when evaluating a REIT as a stand-out, best-in-class? Or are they generally all the same?
Thanks,
Derek
I am looking to replace ZRE in my non-registered accounts with 2 - 3 REITs. I am trying to adopt a best-in-class approach, versus holding the "basket". Do you have any suggestions for best-in-class REITs, that will hopefully endure as best-in-class (versus a flavour of the month)?
Second question (please don't hesitate to deduct another credit): I am not quite sure what constitutes best-in-class but would guess a promising growth profile, strong management, manageable risks, and a reasonable distribution. Am I missing something? What do you look for or consider important when evaluating a REIT as a stand-out, best-in-class? Or are they generally all the same?
Thanks,
Derek
Q: Hi,
I am looking to buy some REITs. I would prefer to own a few (4-5) rather than purchase an etf. Which names do you have a preference for? Also, should I follow the supposedly conventional wisdom to buy only after we see a hike in interest rates? Also, since the Vancouver and Toronto seem saturated, is it best to look for exposure in other cities?
Many thanks
I am looking to buy some REITs. I would prefer to own a few (4-5) rather than purchase an etf. Which names do you have a preference for? Also, should I follow the supposedly conventional wisdom to buy only after we see a hike in interest rates? Also, since the Vancouver and Toronto seem saturated, is it best to look for exposure in other cities?
Many thanks
Q: Sentry Global REIT Fund cut their distribution at the beginning of the year. Is it still a good buy?
Q: I currently hold a 2% position and would like to increase my REIT holdings. Would you suggest a single position or an ETF ? Would you continue to hold Boardwalk ?
Q: Given that these two ETFs have almost exactly the same holdings and similar MERs why does XRE have a 5.3% distribution yield and VRE have a 2.45% distribution yield?