Investment Q&A

Q: The last few years have seen the introduction of style-based ETF's that focus on low-volatility (ZLB, ULV, XMI), momentum (WXM, YXM, MTUM), growth (XCG), or value (FXM, VLUE) styles of investing. The low-volatility and momentum ETF's in particular seem to have been doing well recently.
However for the last five years or so we have seen generally rising markets that have provided a climate for positive results, and one cannot check how these ETF's did in major down drafts because they were initiated more recently than 2008/2009.
How do you think the various style-based ETF's would do under different market conditions than we have seen in the last five years?
I have checked the performance of some of these funds against the TSX Composite Index during the correction of September-October 2014 and from the high point to the low the TSX Index was down 12.4%, FXM was down 12.5%, WXM was down 11.0%, XCG was down 8.4%, and ZLB was down 5.3%. How much significance should be attached to results from a single correction?
I guess my basic question is whether you see any advantage to diversifying my ETF's across different styles of investing, or should I just stick with ZLB (up 66% in three years) for my Canadian content ETF? (I recognise the value of multi-country diversification).
By the way, you have a great site - I admire your dedication to investor education. All this for the price of a cup of coffee a week is incredible.

Q: Thank You for the great service. My question generally relates to dividend paying stocks. I own the following dividend payers, BCE, BIP, BNS, BPE,CGX,CU,EMA,ENb,FTS,IPl,PPL,RY,SLF,T,TRP,NA,TD,CNR, KBL and a few others. These dividend paying stocks make up approximately 45% of my portfolio. My question is: Is this too much of this type of security to own in one's portfolio? Thank you.

Q: This year, I would like to increase the US equity weight in my family portfolio to approximately 15% of our overall family portyfolio and am considering the purchase of CLU with a MER of 0.72. I already own some VIG in US$ and believe that the spread between the US$ and Cdn$ will continue to increase in 2015. Do you see any better choice of ETF than CLU to achieve my objective. Thank you.

Q: Would you consider this etf in hedged cdn funds to be one that could be held in an unregistered account and used for u.s. exposure as it has performed very well as its cousin zlb that I have owned for a long time...I appreciate your thoughts on this ...thanks

Q: I have been looking into this Corp, the dividend being attractive.I am retired and conserative. What do you think? Is it worth taking a small position in? With the cost of there operation going down with the price of fuel do you see an upside

Q: Hello 5i staff, I have a position in Whiting Petroleum as a result of a takeover. It is about 1% of my portfolio. I am overweight CDN energy names. Could you please take a quick look at Whiting? Is it a decent name to hold for potential sector recovery? If it is not a hold could you please suggest a US etf ( non energy) that might have better potential for growth? Thanks as always, Frank

Q: Which of the following etf's holding emerging market securities would you recommend.... HAJ, VEE or ZEM? Most of my other ETF holdings are Blackrock iShares with some BMO products, so I would like to diversify into Horizons, Vanguard, or BMO on this one. Many thanks!

Q: I have a quarter position in Rifco that has not been working.
Would you trade this for Currency Exchange International(CXI)?
I would like to ensure my $ in the higher risk/higher growth portion of my portfolio are in the names that have the best chance of working.

Q: I hold two tech stocks at present, ESL and GIB.A. I would like to add a third and wonder which of the following you favour at this time: CSU, ET, OTC, SYZ. Thank you.

Q: Rob McWhirter, on BNN quoted Ned Davis' research prediction for the next 16-20 years of low commodity prices. Oil=$35/bbl, Gold=$700/oz and copper= $135/t. This would have serious impacts on the TSX and the old favorite banking stocks would feel the pain as well. Are you able to comment on these forecasts?

Q: I have a Riff pay't coming to me on Jan. 15/15.(need to raise about 9.000. to cover Riff pay't.) And I am wondering what I should sell. Do I sell a stock that is in a negative position or one that is in a positive position. What would you recommend, or one that has no potential for growth. But how does one decide which is the best to sell. My stocks are mostly dividend earning stocks. Any advice would be appreciated. Thanks for a great site. Ernie

Q: I see that there is still a bit of insider buying in Aston Hill with net buying overall. Do you have any insight regarding how AHF is progressing with restructuring their Assets Under Management ? Would you consider them a speculative buy here ?

Thank You
Clarence

Q: Hello 5i Team,

I am searching for a healthcare ETF, and see that you normally suggest XLV, and sometimes ZUH. However, what is your opinion of FXH? It has performed better than XLV over the last 5 years, but has a higher (0.66%) expense ratio (which may be worth it).

What are the major differences between XLV, FXH, and ZUH, and if you were to choose one for a medium risk investor with a long term (3+ years) hold which one would it be?

Paul J

Q: Happy New Year Peter and Staff.. I have basket of utilities but did not own Valener yet....seems to look like what you would hope for ......no drop in value though it did not rise as much as many in the sector in 2015. The recent drop in oil has reminded me that if I am getting a healthy dividend with tax credit, and I get my acb back some day I did alright. Having said all that ,what is your outlook for share value future growth and dividend maintenance/growth on VNR

Q: NLN seems to be breaking above a trading range that has existed since the spring. Technically the stock looks fine to buy but have fundamentals changed sufficently that you are more comfortable with it?

Don

Q: Can I have your opinion on this ETF for the US portion of my portfolio. The returns seem to have been quite decent and wandering if the low volatility would protect my portfolio on the downside.

Thanks for the great work and have a happy new year.

Q: can you tell me if this a good investment for the next 2 years

Thanks for your help

Q: Whitecap in your modelportfolio is not rated and there's no report yet, but I'm wondering whether to go ahead and sell Baytex and replace it with Whitecap. Would WCP be the better holding for a recovery in oil prices, as well as for the long term?
Thank you!

Q: Hi Peter/Team,

What's your opinion on putting new money in DH at this time.

Thanks,
Jim

Q: A year ago you responded to my question regarding Mawer Funds. You said they were among the best of the managers available. I purchased Maw 102, 104, 108 and 130. I am happy to say they have all done extremely well. I am thinking of buying more of maw 108. What will be the impact on the fund if the Canadian dollar appreciates in value. Could you explain how exactly the fund is Canadian dollar hedged. Thanks for your help.

Ray