Investment Q&A

Q: As small investors, we are constantly urged (John DeGoey even pleads) that we diversify out of Canada via ETF/mutual funds but far less is said about the tax implications on investment return of the recommendations. Let's say one wants to invest new funds in mutual/ETF funds that are tax efficient. Because of contribution limit rules on TFSA/RSP/RIF, someone wants to add to their regular Canadian trading account instead. I understand at least one fund co. uses swaps so you postpone tax until you sell thereby avoiding annual dividend and unpredictable capital distributions. At least you then have some control over tax exposure timing and amount. Realize this not the forum for comprehensive answer (designing such a portfolio good topic for one of your newsletters), but can you advise of of some high quality fund managers/funds that offer tax advantaged products? Thank you.

Q: How significant do you think Visa's new sensory tech will be on momentum? I am trying to add to my financial sector. I have Royal Bank and Square. Any thoughts?

Q: I presently have $150,000 in MMF19. It has a MER of 1.5% and has yielded about 3.5 % annually over the past two years. PMIF has a MER of 0.75 and the indicated yield is 4.6% while PM0205 has a MER of 0.75 and a yield of 3.94 %. Would you sell MMF19 and buy one of the PMICO funds as a replacement? Would you have an even better suggestion?
I'm 85 years old with no need for income but I want to reduce risk by holding some bonds.

Q: Invitae is being recommended as a company that owns fast growing genome testing technology. However, the stock price has come down considerably after the latest results. Is it worth buying?

George Mani

Q: i currently hold hr.un and drg.un in my portfolio for a total reit exposure of 12%, split almost evenly between the two. I am thinking of reducing the above two and adding bpy.un for a total of three reits totalling 12% of my portfolio. Would i gain much more global exposure than what i currently have and would it increase my exposure negatively.

Thanks, David

Q: Hi Peter & 5i Staff,
Is there a Canadian growth ETF that would cover the Utilities and Energy sectors. If not, what is the alternative ie.
covering the US
Thanks
Ivan

Q: Hi Peter. I've held Chemtrade 5 years, and Gamehost 4 years. I add when they are down and trim when they are up and collect the dividend. Would you add to either now? Thanks.

Q: Hi Guys,
Do you have a current opinion on FFH?
Is the current price of $657 a good entry point?Would it fit into a conservative portfolio as part of the financial area?
Thanks for the help.
John S

Q: Hello 5i,
My wife has a very small LIF (around 1% of our PF value) which was put into RBF461 A. Initially it generated enough income to almost cover the withdrawals, only a minimal amount was needed to be sold. The last year, however, has seen the fund return very little and more has needed to be sold to cover the annual withdrawal.
I was contemplating switching the LIF to XTR which would seemingly generate far more income and require a smaller amount to be sold. My questions are:
1. Would you endorse moving out of the RBC mutual fund and into an ETF?
2. If so, would XTR be a suitable candidate or would you recommend something else?
We currently have (5) pensions and an equity portfolio which also has some fixed income in it (@15%).
Thanks for any direction you might be able to provide.
Cheers,
Mike

Q: Hello Peter
What are your thoughts on Nomura Instinet analyst comment on CNBC about SQ Inc.
(Payment company Square is "analogous to Amazon or Google in their early days" but Wall Street is valuing the stock all wrong, according to Nomura Instinet)
Thank you always for your valuable advice.
Regards
Claudio

Q: Do you think an investment in Annaly Capital Management has a good chance of success at this point in time ? It would be an addition to financial stocks which I presently hold : TD Bank and Manulife.

Thanks,

Tim

Tim

Q: How do you like to determine the future growth of a company? What metrics do you feel gives the best projection of growth if you are looking at /comparing companies on Morningstar?

Q: I have noticed a trend to gold companies being proposed as a sector to be considered ready for a buy. please advise your suggestions in this space.
Doug

Q: I hold ALA common shares at a small loss (bought just under $30), and am surprised that it has not been able to get back up near the $31 receipt issue price. I am considering selling ALA and buying back the same number of shares as ALA.r, at a slightly lower price. Is it correct that if the deal does not go through, the receipts are cancelled at $31 per receipt, and if the deal does go through, the receipts become ALA shares on a 1 for 1 basis?

My thinking is that if the deal fails, then I have a capital gain on the receipts (including claiming the current loss on ALA), and if the deal goes through, I am essentially in the same position, whatever the share price. I guess the downside is that if the deal fails and the market really likes that, ALA common shares could go above $31. Am I thinking straight here, and do you have any comment on this plan or the potential market reaction to the deal failing.
Thank-you

Q: seems that my first question got lost. could you give your current recommendations on a Japan Etf, and a emerging market etf. I have a balanced portfolio with Canada and the U.S.

Q: can you give your opinion on high liner foods

Q: Hi there,
I have been thinking about hedging my portfolio against a downturn and want to explore ETFs that are bearish on the market. I would appreciate thoughts about any Canadian or International ETFs you might point me to for further research. I would be looking at starting with a small position for now. And, I would also appreciate any other thoughts you might have about insulating a portfolio against the inevitable correction.
Thanks very much, I appreciate the service you provide and just renewed again.

Q: please recommend the best Japan, emerging market ETF at this time for capital gain.

Q: I hold these 3 RIET’s in my investment accounts. I am looking for a replacement for H&R. Would appreciate your suggestions to provide a reasonable return with some growth. The holding will be in a taxable account.
Thank you
Les

Q: Hi 5i team,

Enjoy reading the blog on power of dividend growth stocks. I want to invest in US, Europe and Emerging Market. Would investing in ETFs that track dividend growth stocks be better than the overall indexes?
Please provide your ETFs picks, in US$ and in C$, that invest in dividend growth stocks in US, dividend growth stocks in Europe and dividend growth stocks in Emerging Market. Would these etfs be best held in RRSP account? Thanks.