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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: Hello 5i,
I don't have much healthcare exposure right now but I'm thinking about getting back in. I noticed the resent many reasonably priced options in Canada - CRH and GUD seem like the go to names but each have massive P/E ratios.
As a result, I was thinking about buying a US retail pharma stock like CVS or just buying the XLV instead. I like CVS as it is kinda like "owning the race track instead of the the race car". Am I hitting the mark with this analogy or am I missing something? Some Bio tech names appear quite cheap due to pricing/political risk etc. But I also would never know which one to buy. Do you see any issues with the CVS in general? Would you recommend just buying the XLV instead? Thanks
Read Answer Asked by Scott on February 23, 2017
Q: I would like either STN or WSP and would appreciate your comments on which one is preferable and why.
I have no health care and would like your suggestions for this sector, individual companies or ETF's.
Thank you.
Read Answer Asked by Nadine on January 03, 2017
Q: In many of the ETFs that track US healthcare, some of the sub-sectors took a hit yesterday while others outperformed. Is it too early to tell what this portends? Given the new U.S. admin, I’d be grateful if you could share your thoughts on your favourites in this space, especially among the broadly diversified ones. Thanks very much.
Read Answer Asked by Brian on November 11, 2016
Q: Hi 5i. I was interested in your reply today to Shyam regarding XLV, where you noted that it has had "better performance of late". My records show that XLV price has dropped steadily over the last 3 months by 6%.
This leads me to my question : We hold XLV and PSCH (Powershare Small cap Healthcare ETF) in our non-registered account (< 2% of our total equities). Our cap gains on these have been reduced from 15.8% to 8.9% (XLV), and 14% to 9.7% (PSCH) respectively over the last 3 months.
My theory is that these will continue to drop as we get ever-closer to the U.S. election. I am thinking of selling both of these ETF's while they still give us a reasonable profit of approx. 9 and 10% respectively, and then waiting out the election fallout before deciding whether to get back into Healthcare.
We would appreciate your comments. Thanks T.
p.s. PSCH did not come up in the "companies" list
Read Answer Asked by Terrance on October 18, 2016
Q: Hi, My current exposure to the health care sector is less than 2%. I am considering increasing my position to approximately 5% by means of etf (I currently own GUD and GILD approx 1% each). I am considering XLV or IBB for etfs. Which of these (or) any other etf you would recommend? I noted that IBB seems more volatile than XLV when I compared them..I was wondering why?
Read Answer Asked by Shyam on October 17, 2016