Investment Q&A

Q: Hi, thank you for the article on international stocks and the portfolio analytics.
I am now trying to decrease my Canadian home bias (40% to 25%) by increasing my international exposure (20% to 35%) and maintaining my US at 40%. My wife and I own XWD, VE and XEF in our TFSAs. I was thinking of selling XWD and adding VEE or VWO (RRSP) and/or VDU or VEA (RRSP). The switch to RRSP additions is to benefit from US withholding tax exemption.

Could I have your thoughts on the above changes. Is there too much overlap in owning all four ETFs? Could I simplify to one, two or three?

Thank you.

Q: I have 30% of my money in diversified CDN equities and don't need the money for 20 years.
I am not interested in bonds or REITs. I was considering putting the other 70% in the following ETF's.
45% VFV
18% VUN
18% XQQ
11% XEF
8% VEE
This would put around 57% of the total money in the USA. I am fine with that.
The MER would be around 0.18% based on the blend. I know this breaks your rule of keeping less than 25% in one fund. It also places a lot of money in Vanguard - which has been around since 1975, but nothing is for sure. Wondering what you think of this set up and also maybe I could sub out VUN for XUU. This would make 53% Vanguard and 47% iShares. Trading VUN for XUU would lower the MER a little as VUN is 0.16% and XUU is 0.07%

Q: Good afternoon,
The analytics indicated that I needed to increase my international exposure by 31%. I'm sitting on some cash that I hadn't decided what to do with. I assume it makes sense to add international ETF's. The ETF recommendations from analytics included the VEE and VIU. I currently hold a small amount of the VEE and the VXUS. I'll add to the VEE. Which do you prefer the VXUS or VIU or should I just add to both with having so little exposure outside of North America?
Thanks,
Kerri

Q: CIF 823 is the last remnant from the portfolio of my former financial advisor. How would you assess this mutual fund? Would an ETF (or several) be a preferred replacement?
Your input is always appreciated!

Q: For international exposure, would you endorse holding a combination of VXUS and VEE? If so, in what proportion should each be held?

Q: I want to invest part of my portfolio in emerging markets. My present portfolio makeup is 89% CDN equities & 11% US equities. What percentage of a portfolio do you recommend be invested in emerging markets? What parts of the world do recommend for investment purposes & what ETF’s specialize in those areas? Thanks … Cal

Q: Hi - looking for recommendation for ETF recommendations within my TFSA. 40% of TFSA will be for this ETF mix and 60% is in your Balanced Equity model. Long term investment horizon for me as in mid 30s. Any recommendations?

Q: I have a small position in vee and am considering. Adding some rww as a complimentary position for diversification. Your assessment and analysis would be appreciated.

Q: Have a limited amount to spend and wondered how you view ATCO considering the Kitimat deal. I currently hold ZEF and have noticed that you like VEE. Would I be best off changing to VEE?

Q: I have read here and elsewhere that that VEE does not hold stocks directly, but rather via its US listed counterpart VWO. However, I can't find any confirmation of this on the Vanguard side or in the VEE prospectus. The Vanguard Canada page for VEE implies that stocks are held directly. Can you please confirm that this is in fact the case? Thank-you.

Q: It seems to me that emerging markets are starting to act a bit better as of late. Do you agree a move into EM at this time would be wise? If so, please suggest a few ways to play the trend. If not, give your reasons. Awaiting your respected analysis.

Q: Can you please recommend an emerging market etf
Thank you

Q: I would liked to switch the focus of my investments from equities to ETF's. Could you give me some broad parameters for guidance.
Could you suggest 10 ETF's for starters. Mid to long term with medium risk.
Thanks for your help.

Q: You suggested the above ETF's for my daughter . She is moving to the USA so could you please suggest the closest equivalents if she is based in the US or would the 4 ETF's mentioned still be appropriate ? Thanks again.

Q: Hi Peter, Ryan & Team
In addition to my current 5i Balanced portfolio I want to build an additional RRSP ETF portfolio.Time horizon 3-5 Years and my risk level is moderate.
I am thinking to invest in the following ETF. Appreciate you advise on the distribution, concentration and risk level.
XMD 30%
VUN 20%
XIU 10%
VEE 10%
VXUS 10%
IXC 10%
IWO 10%

Thanks,

Q: I have about $10,000 I would like to get some non-U.S., foreign exposure with. Maybe an ETF or 2, a dividend would be great but not if it takes away all the growth. Would you recommend China, India or Europe? I know it will limit my choices but I would like to purchase it in Canadian dollars. Thank you so much :-)

Q: What etfs would you recommend to invest in the emerging markets at this time?

Thanks for your help, Bryan

Q: I hold a substantial position in VEE as part of my international allocation. While it is priced and trades in Canadian dollars, its core holding is VWO which trades in US dollars. I already have enough US dollar exposure, and welcome the added diversification between the Canadian dollar and local emerging market currencies. However, adding VWO into the mix has me confused as to how F/X exchange rates will affect the performance of VEE. Will any F/X impact to VEE be limited to the relative exchange rates between the Canadian dollar and emerging markets, or does the US dollar somehow play into this?

Q: Investments in emerging markets might make sense at this stage.
What would be your assessment? Would you have another recommendation?
Thank you, Team!

Q: In the past I have had very good results from investing in Mawer Equity Funds. In world markets, I have found that they typically outperform the comparative benchmark. I have virtually no exposure to emerging markets so thought that I would invest a small percentage of my assets in the Mawer Emerging Markets Equity Fund. Currently, because it is a small fund, the MER, all in, is in excess of 1.9% and at mid year they were underperforming the emerging markets index; however, I believe they have outperformed since that time. I understand it can be a very volatile area of the world to invest in but thought I should be there so hopefully have picked the fund that will perform best over a 10 year or so period of time. I recognise that this fund has a much higher MER than an ETF but thought that this may have value in this area of investment. I appreciate very much your comments. Thank you.