Investment Q&A

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.

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.

Q: I have no International exposure to date. Can you please suggest your top three International ETF's.

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?

Q: Hi,

What are a couple Canadian listed ETFs to replace VXUS. I'm thinking of selling my VXUS and buying VIG with the USD, and then replacing VXUS in my CAD account.

Thanks
Robert

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

Q: You have mentioned both VIU and VXUS for International exposure in a portfolio. Can you please explain the difference between them? Would one be better than the other as the only International exposure in an ETF portfolio?
Thank you!

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!

Q: Portfolio analytics suggests that I need more international exposure. Can you suggest some ETFs that would provide me with broad exposure to international markets (non-US markets)? Perhaps lower-, medium- and higher-risk options? Thank you.

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

Q: Do you have a preference between these 3 ETFs, or is it pretty much a draw?

Thanks.

Q: Good afternoon 5i,

TD has the dividend payments of VIU and VEE respectively at $0.80 and $0.86. Is there a withholding on these amounts since they're foreign or is that automatically built in to the price for share. I'm simply trying to estimate my dividend payment from both.

Why do their payments vary quarter to quarter when other ETF's (e.g. ZSP) keep the same payment rate per quarter?

Thanks in advance. - Jeff

Q: If you had to pick 4 ETF's as a core of a portfolio. What would they be? US listed ETF's are ok.

1- Can Equity
2 - US Equity
3 - International Equity
4 - Bond

Q: For these ETFs, in the 'Regions - Country Breakdown' they both have 'Asian Developed'. What countries does this include?

Q: I am extremely low in International and US stocks, I would like to have an ETF for each that I can put in either my RRSP or TFSA. I know you have mentioned in the past that you like IWO for small caps, is that still the case or is there a better choice.
Thanks for all the excellent help

Q: My 28yr old son is looking to build a diversified ETF portfolio with 100% equity exposure with a bent towards growth given his long investment horizon.  These will be spread across his TFSA, RRSP and Non-Registered accounts.  Since he will be contributing smaller amounts on a regular basis a zero commission platform such as Wealthsimple is appealing.  However, they charge 1.5% fee for all currency conversions making it only practical to hold Canadian traded ETF's.  As a result he is considering the following:

ZSP 40%
XIC 25%
TEC 20%
VIU 10%
VEE 5%

ZSP + XIC + VIU + VEE together create a mix of ETFs that are globally diversified and very similar to the structure of XEQT/VEQT.  Versus XEQT/VEQT This portfolio has a slightly lower weighted-average MER at 0.16% and also has 20% in TEC (in place of something like QQQ) which is more growth oriented. Here are how the sectors would be weighted with this portfolio:

Info 31%
Financial 15%
Cons Disc 11%
Industrial 9%
Healthcare 8%
Communica 7%
Cons Staples 5%
Energy 5%
Materials 4%
Utilities 2%
Real Estate 2%

These would be the top 10 holdings with this portfolio and these top 10 would account for 24% of holdings in this portfolio:

AAPL5.1% MSFT4.9% AMZN3.2% GOOGL1.8% FB1.7% GOOG1.7% TSLA1.5% SHOP1.4% RY1.2% NVDA1.2%

If this was you at 28, can you please comment on
- are the 5 ETFs he has chosen ones you would go with given his objectives, if not, what changes/substitutes would you make along with recommended % allocations?
- is his % allocation across the 5 appropriate or would you make changes? For example I thought there might be too much overlap between ZSP and TEC as they are both highly invested in AAPL, MSFT, AMZ and FB and he is looking at 60% going into these 2 ETF's. That may well be what you want at his age but  I wonder if he is better served by reducing ZSP to 25% -30% and TEC to 15% and add  the remaining 15-20% to CDZ or VGG (or something else?)
- given he will be making contributions to his TFSA, RRSP and Non-registered, which ETF would be best in which account and why? 

Thanks for all your help, 
Scott

Q: My sister just pulled out of Questrade's Robo account to a self-directed account. She planned to buy basic 4 index ETFs in order to keep things simple (XIC for Canadian (30%), XUU for US (35%), VIU for Europe (20%), and VEE for emerging markets (15%)).

However, when the funds appeared, we found two thirds of it was in CAD and one third in USD. It seems inefficient to convert it back to CAD and buy those funds. So we're thinking of buying the US equivalent ETFs for XUU and perhaps VIU and VEE.

Can you give us the US equivalents of these funds. If you have any advice on our strategy here or the funds I've mention (eg. whether iShares or Vanguard is preferable in these areas) feel free to add your wisdom which I so much value as a member.

Q: Currently our portfolio is 15% too high in Canadian stocks and ETFs and am
needing to add to International I would appreciate 3 stocks or an ETF that would be the highest on your ratings. Thanks!

Q: I would like to invest using only 4 ETFs. One for short bonds, one for all Canadian stocks, one for emerging markets, one for the whole US market, and one for the developed world (as wide as possible) excluding Canada and the US.

Which ETFs should I use?

Thanks

Q: This is a list of the ETF's in my portfolio, (I have omitted the fixed income ETF's that comprise of about 20%).

Do you see any issues with the selection? Any overlap? Perhaps there are better alternatives than the ones chosen.

Thanks for the great service.