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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Greetings 5i Team,

I am currently in the process of transition our holding from growth focused to income focused. This has been a much more painful exercise than i had every anticipated: 1. As a long time growth investor i have not paid much attention to the income market and the learning curve is big. 2. I struggle with maintaining diversification across industries as i look toward dividend growth and high yield stocks. 3. i am having trouble giving up my growth bend but knowing that we will need the income from our large portfolio starting in 6 months. 4. Don't have a good sense of what the makeup of my portfolio s/b going forward. right now i am about 10% Bond, 15% preferreds and the rest in dividend payers (some growth some high yield) I have yet to find a resource or web site that provides independent advice on how to make the transition. i am also having a difficult time assessing risk of some of the income plays (for example MDIV) Anything you can recommend. I expect i am not alone out there.

Thanks as always
Read Answer Asked by kelly on March 13, 2019
Q: how do I access Peter's webinar of March 6th, 2019 on SmallCap Power?

Thanks
Scott
Read Answer Asked by Scott on March 12, 2019
Q: I am compiling a list of companies that have a large cash pile and a track record of being acquisitive and who might exploit opportunities efficiently during a recession, or other negative market event. Who would you put at the top five on that list? Thank-you.
Read Answer Asked by Alex on March 12, 2019
Q: Hi Team,
I am putting a note on my personal file for my wife in case I ever become unable to manage our household portfolio. Inspired by Buffet, I thought having 3 years of cash and the rest of the portfolio in something like VCNS, re-balancing annually, would offer a diversified and conservative portfolio that would be very easy to manage and meet ongoing needs.

One of your recent answers suggested not exceeding, I believe, 25% in any one ETF or fund. If I were to follow that rule, I would need to come up with the equivalent of VCNS in a few funds.

Would it make sense to simply tell my wife that instead of buying only VCNS, buy all the constituent ETFs held by VCNS, in the same proportions held by VCNS, and rebalancing annually?

That would mean holding the following:
AB.TO Vanguard Canadian Aggregate Bond ETF 35.74%
VUN.TO Vanguard US Total Market ETF 15.45%
VBG.TO Vanguard Global ex-US Aggt Bd ETF CAD-H 14.00%
VCN.TO Vanguard FTSE Canada All Cap ETF 11.91%
VBU.TO Vanguard US Aggregate Bond ETF CAD-H 10.94%
VIU.TO Vanguard FTSE Dev AC ex Nrth Amer ETF 9.08%
VEE.TO Vanguard FTSE Emerging Mkts All Cap ETF 2.87%

Can you think of a simpler way to go here?

Thank you very much. Michael
Read Answer Asked by Michael on March 12, 2019
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?
Read Answer Asked by Bonnie on March 12, 2019
Q: My 14 month total return for this preferred share etf is - 7.53%. It should provide better downside protection than HAZ , so maybe having a ten year time horizon would be better, and just look at it as part of a diversified income portfolio. Would you step into HAZ at this time if you needed Dividend income?
Thanks Gord
Read Answer Asked by Gordon on March 12, 2019
Q: I've just started contributing to an RRSP this year. I would like to implement an indexing strategy for the most part since I wont be using the money for 30+ years. I've only looked at vanguard so far: VOO, VFV, VSP and maybe VOOG. My question is, would it be better to use a canadian fund etf that tracks the s&p 500 like vfv, or would it be better to use one in american dollars like voo. If I do go with Canadian, should I go with a hedged one such as VSP? Or perhaps a mixture?

Thanks
Read Answer Asked by Danielle on March 12, 2019
Q: Could you please suggest one or two currency hedged bond ETFs to compliment ZAG. This would be for a long term core position. I am trying to slowly increase my bond exposure and my only other holding is ZAG. I prefer to ex out currency fluctuations for my bond allocations, hence looking for hedged position. My initial thought was VBU. Your thoughts are always appreciated.
Read Answer Asked by Aaron on March 12, 2019
Q: Could you please give me your opinion as to the quality of the companies in the energy sector and would now be a opportune time to purchase for a 2 year hold. Are there other companies in the sector that you feel would provide better upside. Thanks
Read Answer Asked by Ian on March 12, 2019
Q: Hello Team,
I a significant amount of cash to deploy in my RRSP and also in my TFSA.

I would like to build a mixed portfolio (50% income/50% growth) and would like to know what would your best 4 picks from each categories (income portfolio/growth portfolio) at this moment.

Would you have the same picks for the RRSP and the TFSA.

Thanks in advance!

Michel

Read Answer Asked by Michel on March 12, 2019
Q: Hi 5i team,
Some time ago, I bought CSU shares (thanks to 5i) on the Canadian exchange. I transferred them not so long ago to my usd account in order to receive their usd dividend in usd. To my surprise, I still receive it in $cad. My understanding is that I am getting slammed twice by the bid-ask conversion exchange rate.
I contacted my broker who answered: that it was either a CSU ou compensation chamber’s decision to pay the dividend in $cad to CSU’s shareholders, and that they were converting the amount in usd because the shares were in my usd account. I then contacted CSU: who promptly responded (thank you) that they were paying their dividend in usd out of their usd, and also that they had nothing to do with the american listing (pink sheets)(Is that the problem?). I understand that there are many/several large TSX listed companies paying usd dividend (algonquin, brookfield among others). So my case or CSU’s case is probably not unique. My question is: what should I do in order to receive CSU’s dividend in usd? I would appreciate to get an answer specific to my situation, not a generic answer. I understand that getting to the bottom of this might take time/effort. There is no hurry, my timeline is: several days before the next dividend payment in April in order to have the shares in the right account for the next regular and special dividends.
Thank you for your collaboration,
Eric
Read Answer Asked by Eric on March 12, 2019
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