Investment Q&A

Q: How much overlap is there between VFV and VGRO. This is for a RESP and would you owned both or just one? If only one which one you prefer? Funds not needed for at least 10 years. I own IWO and VGG already.

Thanks

Q: I read somewhere that if you had just maxed out your TFSA contribution each year with an S&P 500 ETF, such as ZSP, then you would have well over $200K in your account by now.

Is there a website where you can input a security on a given date, and it will show you the value of that security today as if you had bought it on that given date?

Thanks,
Robert

Q: In a recent answer your wrote HXS we like but many investors do not understand the swap/derivatives so we often mention it after other ETFs. I agree, I did an internet search to try to understand the swap/derivatives procedure, but am still confused. I understand the tax advantages of HXS held in a non-registered account, but if VFV was held in a RRSP is it not better to receive VFV capital gains PLUS dividends then just HXS capital gains & No dividends. For both VFV & HXS track the same S&P 500 Index, so their performance should be the same, less different MER charges. Thanks … Cal

Q: I'm curious as to why you recommend VFV as it is my understanding that it is a Canadian ETF invested in a US S&P 500 ETF which has double taxation in a RRSP and doesn't seemed to be taxed favorably in a TFSA or non registered account either. Wouldn't be better to buy ZSP which invests directly in the S&P stocks or HXS which has a higher fee but no dividend to trigger withholding tax?

Q: In a recent answer comparing the 2 ETFs, VFV & HXS, you said HXS does not pay any distribution. Does that mean it is like DRIP, instead of a dividend payment, your share holdings increase every quarter. Thanks … Cal

Q: What would be your top 4 CAD ETF picks for longer term growth?

Q: HXS has has a management fee of .10 but as they state this does not include a swap fee of approximately 30 bps. Is the actual management fee .40? Is the swap fee related to the total return nature of this ETF? I’m looking for an S&P ETF to hold in my TFSA and HXS seems like a great option as I wouldn’t be subject to withholding taxes. Do you feel HXS is a better choice then VFV for a 10+ year hold inside a TFSA due to the savings on withholding taxes?

Q: If one was to anchor their RRSP portfolio with VBAL which is a 60 equity/40 fixed income split, but would like to be more 70/30. Would you add another ETF or two to achieve the desired weightings? Does this strategy make sense? What would be Five i's thoughts and suggestions.

Thank you

Q: Good morning,

I own a substantial amount of MAW 108 in my Non Registered, TFSA and RRSP accounts.

After reviewing the numerous questions relating to VFV ETF and closely examining the annual performance of MAW 108 over the last 15 years, it is clear to me that VFV ETF has performed much better on the whole over a long period and that VFV or HXS would have been a better choice .

Given that there would be substantial capital gains tax incurred by replacing MAW 108 with VFV ETF or HXS ETF in my Non Registered account and therefore not an appealing option, what are your thoughts on:

Q1. Replacing MAW 108 with VFV or HXS in my TFSA and RRSP accounts;

Q2. Are there any withholding tax considerations in holding VFV or HXS in my TFSA and RRSP accounts?

Q3, Is VFV your preferred recommendation over HXS ETF, ZSP ETF, XUS ETF for holdings in a TFSA and RRSP account?

Thank you and I will await your usual sage and valuable advice.

Q: I have a friend who wants to start investing at a regular frequency (every weeks or months) to avoid bad trading decisions but he is a bit reluctant to start investing in the S&P 500 since it is almost at all time high.

What are your advices in this case?

Q: Our 19 year old daughter has funds to maximize her first TFSA contribution, and to start contributing to a FHSA. Her profile is conservative. What advice would you give her? Which companies or other instruments do you think she should consider?

Q: on friday i asked:
why do 4 different S&P 500 index funds all have different dividend yields?
To simplify, if we narrow it down to just VFV and VOO, it is the 15% witholding tax on VFV that accounts for the difference. In an RRSP VOO gets exempt.
It seems like we are getting punished for purchasing a Canadian domiciled fund.
So then it comes down to picking the best of 2 bad options:
VOO and pay roughtly 1.5% exchange on the purchase and then again on the sale
or
VFV and always pay a 15% witholding tax on dividends.

Have i misconstured anything?
Is it still a cointoss between VFV and VOO

Q: Hi , what is the difference between VFV and VOO. Is one safer then the other?
Thanks. Alnoor

Q: why do 4 different S&P 500 index funds all have different dividend yields?
SPY 1.413
VFV 1.183 (Canadian listed but still)
VOO 1.452
IVV 1.442

Q: should i buy VFV or SPY? Long term buy in RRSP account, should i accept the FX fee and buy SPY or just buy VFV?

Q: We have a self-directed RDSP set up for my son (age 21, qualified for the RDSP 12 years ago). Up until now we've invested his funds in 5 different equities (4 CDN dividend paying - ARE, AQN, SU, TCL.A and 1 US - DXCM) and the overall performance has unfortunately been abysmal (I'm just getting the opportunity to be more actively involved in managing my son's RDSP). Because my son has a relatively long investment horizon for his RDSP (to age 49), what are your recommendations to optimize this much-needed benefit for his later years? Are ETFs a preferred option over equities?

Q: Opening a fund for my grandson (5 months old). Could you recommend a few ideas please.
Thank you and Happy Holidays To All

Q: I am looking to set up an RESP for grandchildren aged 8 and 6 with about $40k that will be added to annually. I am thinking of purchasing 8 stocks in roughly equal amounts - ISRG, CROX, GOOG, NVDA, BN, LMN, SMCI, HPS.A

Is 8 stocks too limiting and should I look at ETFs for some sectors or should this give the plan a good start and greater diversification can occur as the plan grows?

Anything you see here that raises a red flag or are there other stocks I should consider?

Appreciate your insight.

Paul F.

Q: The U.S. is growing much faster than Canada. Canada’s much slower economic growth relative to the U.S. seems to be related namely mortgage debt, Given this situation, can you suggest 1) Individual U.S. stocks for capital gain 2) Individual U.S. stocks that pay dividends, and 3) U.S. ETFs? Thank you

Q: Looking to add S&P 500 exposure in my portfolio through one of 3 ETF's;
VFV or EQL hedged or not hedged. Normally would prefer unhedged but with our low dollar may be some merit in selecting a hedged version of EQL.

What would you recommend and could you please provide some rationale for your recommendation. Thanks.