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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: ETF questions
1. When we look at charts or reports about the performance of an ETF, does the return include dividends received and net of all fees? For example. The TSX composite had an annualized return of about 5% over the past 10 years but it also pays a dividend of approximately 3%. Is the annualized return a total of 5% (as dividends are included in this figure and are re-invested) or is it about 8%.
2. To minimize duplication, which ETF (orETFs) would you suggest for international exposure if an S&P ETF is already planned for (or does it suffice to have US and Canadian ETF exposure as they are quite broad and many US companies already have international exposure).
Thanks again.
Read Answer Asked by Walter on December 22, 2023
Q: I have some funds to invest in my unregistered account for a 5 year hold and am considering the above stocks and ETFs. Please comment on the projected growth of these stocks and ETFs and rank the stocks for future growth.
Read Answer Asked by Don on November 21, 2023
Q: I have held XEF and Vee for years and they never seem to do as well as North American market/companies.

According to portfolio analytics I need more exposure, but these seem to be drags on my portfolio more than anything. There a slight dividend, but there is overall loss on them.

Do you have any other recommendations to get world exposure but with some better growth?

Read Answer Asked by Colin on November 17, 2023
Q: Hi Peter,
I Would like to expand my question posted earlier. Here is the original, and your reply:

Q: Hi Peter,
I am helping my kids who are in the mid-twenties to invest. The funds will be in RRSP & in TFSA for long term. Would you please recommend a list of ETFs and/or Stocks to invest in for growth. I would like to have the portfolio diversified globally and invested into various sectors.
Thank you,

Asked by Roger on November 08, 2023
5I RESEARCH ANSWER:
We can suggest: CSU, BN, WSP, TFII, ATD, SLF for a conservative mix of stocks from differing sectors. XIC could be a general Canadian ETF, and VFV a US market ETF. We prefer international exposure to be done through an ETF. VIU is an easy solution in our view (it is ex North America).

I have a tax efficiency question. If I am holding VIU in either RRSP or TFSA, would the dividends, even distributed through DRIPs, be subject to an international withholding tax of 15%? If that is the case, do you have another suggestion for investing in an international EFT where dividends are minimized, and the value of the EFT is in growth?

Do you have a suggestion for investing in the emerging market? Again, an EFT with the similar focus on tax efficiency.

Thank you again,
Read Answer Asked by Roger on November 16, 2023
Q: I've got North America covered for my investments through stock purchases. How would you manage the rest or the world if one wanted diversification with a dividend bent. Would you purchase one ETV such as VEA or buy a few ETFs. Also what's a good starting point for a percentage of portfolio outside of North America.
Thanks
Read Answer Asked by Mark on November 16, 2023
Q: According to portfolio tracking and analysis, I am short on basic materials, consumer cyclical, consumer defensive, health care and industrials. Iím also significantly short on international equities. With this in mind, can you provide your top 3 to 5 companies for each sector to increase my holdings in basic materials, consumer cyclical, consumer defensive, health care and industrials. To increase my exposure in international equities, I will be investing in ETFs. Please provide and rank the top 5 ETFs with international exposure. Thank you.
Read Answer Asked by Don on November 14, 2023
Q: I am looking to simplify the management of my RRSP and my wifeís RRSP by shifting from stocks to ETFs. Iím thinking that it would be easiest to manage if I have 1 ETF for Canadian Equities, 1 for US equities, 1 for International Equities and 1 for bonds/ fixed income.

We have a 10-15 year time horizon so ETFs with a growth orientation would be preferred.

Thanks
Greg



Canadian Equities
US Equities
international Equities
Bonds/ fixed income

Read Answer Asked by Gregory on November 14, 2023
Q: Hi Peter,
I am helping my kids who are in the mid-twenties to invest. The funds will be in RRSP & in TFSA for long term. Would you please recommend a list of ETFs and/or Stocks to invest in for growth. I would like to have the portfolio diversified globally and invested into various sectors.
Thank you,
Read Answer Asked by Roger on November 08, 2023
Q: Hi Peter, thanks to you and your team for your great service. For a young person (or anyone for that matter), what are your thoughts on regular contributions to the S&P vs picking individual stocks ? It seems a simple but winning approach as it buys more of the good compalnies each 1/4 and kicks out the poor performers. It lacks energy etc but is this an issue ? Is there any data on how many mgrs or individuals actually beat the S&P. Are there equivilant and/or complimentary indexes you would pair with the S&P ? Looking to spend less time fussing over individual names. Thank you.
Read Answer Asked by Paul on June 30, 2023
Q: In Portfolio Tracking and Analysis you suggest a portfolio allocation of 35% in international stocks.
I currently hold ZDI for 5% and need an additional 13% according to your recommendation.
At 18% (if I stick with ZDI) this seems like much for just one etf. Should I split between 2 or 3 etfs? Which ones do you recommend?
Please take credits as needed.
Thank you.
Read Answer Asked by Roger on April 25, 2023
Q: Hi...I am trying to decide between a growth ex-North America International ETF and a growth Emerging Market ETF. Would have have 2-3 suggestions for each and why I would choose one over the other?
Read Answer Asked by Maxine on February 27, 2023
Q: Hi,

Now, I realize this is not your area of tinkering and please, if you feel its an area you are not comfortable with, say so.

In the many podcasts and financial shows that I follow and listen to a growing number of 'experts' ae waxing eloquent on how they expect the markets ex NA, whether they be EM or Europe will outperform over the next year +

Can you tell me

1)Do you agree with this, why yes or no?

2)If one has no direct international exposure should one , in your opinion own something to give then that exposure. and

3)Finally if you do agree what options would you reccomend investors consider.

Thanks in advance.



Sheldon
Read Answer Asked by Sheldon on February 08, 2023
Q: Hi there,

I've been reading up on the US vs International stock cycle as of late. It appears as the cycle of under and over performance tends to happen in cycles. Obviously no one can predict the future, but do you think International will outperform over the next few years considering where are are in the economic cycle, rates, valuations etc? Can I please have your thoughts?

Thanks!
Read Answer Asked by Michael on January 23, 2023
Q: Hi, can you suggest a few ETF'S and covered call ETF'S to put in a self directed RRIF, providing income and some growth. I know you're not keen on giving specific portfolio construction, IE, everyones circumstances are different, I would really appreciate just a few ideas for core holdings.
Thank's James
Read Answer Asked by James on January 09, 2023