Investment Q&A

Q: I am considering using ETF's to widen my coverage beyond Canada. Could you recommend three or four ETF's that would cover Europe, Developing markets and perhaps a US based ETF as well?
I continue to turn to your site for good ideas.
Thanks,
Bruce

Q: Hi,
What's the best account to hold VEE?

If you want to hold an emerging market ETF, then is it just a fact of life that there will be withholding taxes? Or is there some way around that?

Thanks,
Robert

Q: I'm interested in VGK, VWO and VPL. They've all been doing quite well for some time now. Would you wait for some weakness before buying, or do you expect that all these funds will continue to outperform? I notice that the first two funds are doing a bit better than their Canadian-dollar counterparts, VE and VEE. Would you attribute that mainly to the composition of the funds? Thanks very much for your advice.

Q: to invest in Emerging mkts, what is difference between VEE and VWO and which would you prefer? Or could you name 2 or 3 EM stocks that you prefer instead. thx. Helen

Q: Two questions: Can you recommend a simple/small set of low-fee ETFs for a young, long-term investor for a TFSA, and one for an RRSP? (If not the same.)

Thanks very much.

Q: I am thinking of purchasing these ETF's and wondering if you might give me your thoughts?
Thank you!

Q: Hello, I'm looking for broad market exposure to emerging market equities and emerging market debt. Can you recommend any ETFs that are unhedged? so far I came across LEBM on the debt side and XEC on the equity side that seem ok. thanks for your time. Matt

Q: do you recommend reducing exsposure from USA and Canadian stocks and add a bit of European and Emerging market and if so what mutual funds or stocks would you recommend that are available on the Canadian or usa markets that would accomplish this

Q: Hello again. I’m interested to know how to consider currency when deciding between hedged, unhedged, and US dollar ETFs. In your answer to my last question, you mentioned that you prefer VPL over VAH; how was currency a factor in your judgment? Also wondering if you would approach European ETFs similarly, with respect to fluctuations between the Euro, USD and CAD (e.g. VEH, VE, VGK). Are there separate currency considerations I should take into account for each region, including EM? (e.g. VEE vs VWO)

When I hear professionals recommend CAD-hedged ETFs when the USD is falling, it sounds tactical but what if an investor has a long time horizon in mind? I’ve heard that unhedged ETFs yield better returns over time, say for a period of 15 years, but I’m wondering if US dollar ETFs are even more preferable, considering that I’ve already got some US cash ready to deploy.

Thanks for clearing up my confusion!

Q: I'm considering various ETFs (mostly from Vanguard) for global exposure and I just wanted to get your thoughts:

Asia/Pacific - VPL or VAH
Europe - VEH or ZWE
EM - VEE or VE
USA - VUN or VIG or VGG
Global - VT, VIGI, VYMI, VXC (would it make sense to buy all of these, or is there too much overlap?)

These would all be held for many years. I don't need the income from dividends, but a decent yield is always nice. Currently wondering about things like hedged vs unhedged, fund size, growth potential. Thanks for the advice.

Q: I currently hold both these ETFs, VEF seems to be a better return, would you recommend one over the other, and if so why?

Q: Hi 5i team,
I currently have the above ETFs. I find that the dividend are a bit low (~2%). I was wondering if there are alternatives to the above in the 4-5% dividend range for income?

Andrew

Q: I currently have, in ETFs, 20% in U.S. (VTI) and 10% in international (5% in VEF and 5% in VEE). I'm thinking that long term my U.S. and Int'l should be equal weight as one never knows what countries will perform the best. What are your thoughts on this and recommendations? Thank you.

Q: Hi,

I'm currently only holding XEF(1.5%) and VEE(1%) for international and EM exposure. I'm looking to increase it a bit more maybe to 5%, as the rest of my portfolio is in US or CAD equities. I know you have talked about VXUS as a good international ETF to hold and the expense ratio of 0.11% is hard to beat. When I look at the regional allocation for VXUS, 19.3% is EM, so if we just hold that, would we even need to hold VEE? What do you think would be best to hold to have international and EM exposure? How about VI and VIU (exposure excl. North America)?

Was looking at one or two good quality ETF's to hold. Your thoughts on how they compare?

Thanks!

Q: Can you suggest an etf similar to XIN with lower fees that trades in Canadian dollars? The objective is to try and get some international exposure.

Thank you

Q: Hi All, I would like to invest in hedged or unhedged ETFs for India, South Africa and emerging markets. Any suggestions?
Thanks
Mike

Q: I think it's time that I put some money back into emerging markets. Currently my only holdings (other than ADR's held on International stocks thru New York) is my investment in ZDI. All in, these current investments represent less than 3.5% of my equity portfolio. So my two part question is as follows: 1) what rough percentage would you recommend for international holdings in total (tough question I know), and 2) please give me your opinion on the relative merits/demerits of VEE vs ZEM (on a line chart they track almost identically in terms of performance, so I'm wondering if there's something "under the hood" in either of them that might be important for my decision)? Many thanks.

Q: My only exposure to equities outside of Canada is through the etf VUN. Would it be appropriate now to invest in emerging markets, Europe or world etf's? Could you please make some suggestions to compliment my Canadian and US holdings.
Thanks for your wonderful service.

Q: I noticed that you had been recommending VEE for emerging market exposure, but recently have been recommending EEM. Could you comment upon the respective merits of these two funds.
Thank you.

Q: can you please recommend an etf or two for exposure to emerging markets
thank you