Investment Q&A

Q: I'm looking to add a new emerging market EFT position to my TFSA for an over 10 year hold. Between XEC and VEE which one would be your preference and why?

Thanks in advance,
Greg.

Q: Can you recommend an ETF or specific stocks to get emerging market exposure. Looking for long term growth.

Q: It has been suggested to me that a high percentage of one's investments should be made outside Canada as this is what most pension funds do since Canada is such a small part of the world's capitalisation. Do you concur with this belief re investing? In Canada, in particular, and in the US, to a lesser degree, I have a wealth of information about specific companies. In the rest of the world it is difficult to obtain good information and to buy except through ADR's. Thus my best way to invest is through Mutual Funds or ETF's. It seems to me when I look into Global ETF's that none that I could find matched the long term performance of MAW150. Since I tend to hold an investment for a long period of time, short term fluctuations in value are of little concern. My biggest concerns are the MER of 1.74% per annum and the possibility that Mawer will not match future performance with past performance. Is there an ETF that has a good track record or a different Mutual with a low MER that matches or beats MAW150? If MAW150 is the best, then based on your response, I may purchase up to 25% of my assets in it. With this change in asset mix approximately 50% of investments will be outside of Canada. Thank you. I value your opinion very much.

Q: I have 21 holdings in my RRSP. All dividend payers and am interested in diversity,safety and income. I have 5% USA and 6% CDN bonds the balance are CDN equities. With the unclear future going forward what do you think my weightings should be for diversity and can you suggest some emerging market holdings.

Q: Good Day: I'm wondering if you have a recommendation in regard to an ETF for emerging markets that trades on the TSX? I have held ZEM in the past and have no particular concerns but as I now think about re-entering emerging markets it seems prudent to access your wisdom about possible alternatives that might be superior to the BMO product. Many thanks.

Q: Peter, my workplace DCPP holdings are already well-diversified but I have some accumulated cash to place. Our investment options are quite limited. As between three broad-based funds, a Canadian, a US and an International, which one would you be inclined to see the best return for - over, say, a 5 year period? Thanks for the great service!

Q: Hello 5i,
My wife is concerned that our exposure to bonds is far too high, so I thought I would turn to the experts for advice.
Fixed Income is 31.1% of our total, combined portfolio broken down as follows:
CBO 4.8%
EMB 6.9%
VEE 1.0%
XHY 5.0%
XIG 4.7%
XPF 2.4%
XTR 3.0%
RBF 461A 3.30%
Note: these percentages reflect only the Bond or Fixed Income component of these ETF's, not the equity or other holdings.
We each have modest private pension as well as CPP and (1) OAS.
Our total portfolio income will soon be required to help cover living expenses - and presently looks to be able to do so for the most part.
So, my question is: given the foregoing do you see any areas of concern or any compelling changes that would be required?
I know this might sound a lot like a mini portfolio review, but I have added a lot of detail so that it might assist others who read the Q&A as I know asset allocation is an area of concern and interest for many members.
Please feel free to deduct as many questions as you deem appropriate.
Many thanks,
Cheers,
Mike

Q: Hi,
Ive own a few etfs (vgg and vfv). I have some other individual stocks as well, but the majority of my portfolio is in the etfs looking for long term growth. I have been thinking about adding emerging markets but am having a hard time rationalizing it. I saw that a few days ago you recommended VEE. Can you explain the value of this etf, or is there a better way to get some emerging markets exposure? VEE opened at 24.65 4 years ago and has been up and down a little, but is only at 28.84 today. Is 4 years not thinking long enough for this? Im just having a hard time seeing the value of adding it to my account since VFV has doubled and VFV is up 65% in less time.

Thanks!

Q: Hi Peter and Team!! I do not have any exposure to emerging markets in my portfolio. Could you suggest an ETF for me, and is it a good entry point at this time? Thank you, Tamara

Q: I'd like to get equity exposure outside North America through some ETFs. Could you recommend a few ETFs that would provide sufficient diversification across the rest of the world? Where should I focus? Europe? Emerging Markets?

Thanks,
Jason

Q: What equity investments do you like in the category of emerging markets?

Thanks

Paul

Q: There is lots of chatter these days about this being a good time to invest in Emerging Markets. Can I have your thoughts and recommendations for an EM ETF.

Thanks, Michael

Q: I am looking for a Canadian listed etf,active or passive, that gives exposure to s.e. asia,targeting Philippenes(sp??)vietnam,Indonesia,etc. Do you have any recommendations? Thank you.

Q: I am currently moving some of my portfolio from stocks to ETF's. I want only a plain vanilla flavoured portfolio. I have been going through your questions and answers regarding ETF's, and given the diversity of situations and dates, I am getting a little confused. i wonder if you could suggest the best for broad canada, broad U.S., and international?
thanks

Q: I hold ETFs that track the S&P500, TSX and the All Cap Ex NA index, both hedged and non-hedged. I'm considering adding an emerging market ETF but I'm concerned about the heavy China weighted that most such ETFs have. Your advice would be appreciated. In particular, can you suggest one that has a lower China weighting?

Q: Hi,
My brother is a Primerica agent (err..salesperson). Im not big on Primerica as a company at all. He keeps pushing though about this large cap fund ( http://www.fidelity.ca/cs/Satellite/en/public/products/mutual_funds/equity_funds/cdn_equity/bu) supposed to have great long term returns. One of the things I don't like about this is the management rate of 2.28%.
Im not an active investor, but have some exposure to real estate (through reits) and a little finance through CM.
I am young and have tfsa savings and want to invest in long term growth (etfs maybe?). Could you offer some recommendations on good long term low cost, passive investments?

Your website is awesome and Ill be signing up as a member tonight!

Thanks
Dave

Q: Hello,

I am looking to get some exposure in emerging markets. I currently own only Canadian and US equity. I am looking into ETFs, more specifically; XAW, XEF, VEE, amongst others. I'm looking to invest moderate to long term.

Doing you have a preference amongst those, or other suggestions? Secondly, do you think the timing is right, especially with respects to China? And finally, which countries/continents would you have a preference for?

Thank you

Q: I read an article today in the businessinsider.com by a Joe Quinlan extolling the virtues of buying stock in emerging market countries. He seems to think the upside is huge and the times to buy is now.
Would you agree with this opinion and would VEE be a good option for such an investment? With thanks, Bill