Investment Q&A

Q: If you had to pick only ten stocks or ETF's to hold forever which would they be?
Thanks

Q: Hi 5i Team

When investing monies into a diversified ETF, such as SPY or QQQ, which investment approach provides the best risk-return profile? More specifically, how would you rank the following investment approaches: lump-sum, dollar cost averaging, (DCA) and augmented DCA?

Augmented DCA is a modified version of DCA where the investment strategy is more aggressive if the economy is expanding and more conservative if the economy is contracting. Macroeconomic factors are employed to determine if the economy is expanding or contracting (e.g., market volatility, unemployment rate, and capacity utilization).

If an investor chooses DCA or augmented DCA, over what investment period would be reasonable? Is it 6 months? 9 months? 12 months? 15 months?

Thanks

George

Q: I would like to hold a NASDAQ 100 ETF long term in a non registered account.

1. is there a tax / bookkeeping advantage for holding one of the above over the other? (some websites imply that you have to keep records closely for American dollar ETFs, I believe they are referencing adjusted cost base at time of future sell.)

2. Is there an alternative to HXQ.CA that you would recommend? Or do. you think this is the best one at the present time?

3. Do any of your answers change if held in a TFSA?
4.Do any of your answers change if held in a RRSP?

Thanks
Ernie

Q: Hi 5iTeam,

I wish to setup a long-term equity portfolio for my child consisting of the following:

QQQ - 30%
SPY - 30%
XIC - 10%
VEA - 30%

Rebalancing will be done annually.

Do you have any suggestions on how to improve the risk-return profile of this portfolio? For example, should additional ETFs be added to incorporate "value", "small-cap", "emerging markets" and "frontier markets"?

Your comments are most appreciated.

George

Q: I bought this late 2018 when working with a Nesbitt Burns advisor. I have been very happy with the 2019 and 2020 results (gains of 44.68% and 92% respectively in those years). Fund focus and holdings seems to have changed this year and I am not impressed. Gain of 0.53% year to date. MER is high. Is it time to sell this one in 2 accounts and move on? One is held in RESP with a short horizon now. One is in a non registered account. Do you have replacement suggestions for growth, either equities or ETF.

Q: Good morning,

I recently started selling puts and put credit spreads in SPY, QQQ, IWM and AAPL, these being among the most liquid underlyings with very tight bid-ask spreads. Things have worked out well, so far, as the market has been moving higher and higher.

I'm told that my positions are highly correlated and should consider underlyings that are not as correlated to the broad markets. Could you suggest some underlyings that I can consider? I prefer liquid underlyings so that I can exit them quickly in the event the trade goes against me.

Thank you

Q: I would like to start a Growth portfolio, with 60% US and 40% Canadian stocks. I have approximately $300,000 for this account and a long term view. Would appreciate some suggestions. thanks

Q: What technology stocks or ETF would you suggest for a TFSA? It can be either Canadian or USA.
Thank you.

Q: I am looking to invest in an ETF for a period of 5 to 10 years and have a medium to high risk tolerance. Can you suggest 5 to 10 ETFs that should be considered? Thank you very much

Q: My question has to do with technical indicators that may signal bearishness. In particular, I'm looking at the "unusual short interest" in the mentioned ETFs. Some popular "influencers" indicate they hedge when a market turns downwards by shorting these ETFs. This, the logic goes, is a way to protect the downside without liquidating high growth holdings.

Right now, my intution is that there is a "de-risking" going on in the markets (away from high growth and speculative cyclicals to blue chips and large cap tech).

My questions: Do you see unusual short activity going on in these ETFs, is it a fair indicator of broader bearishness, and do you think the strategy of hedging by temporarily shorting these ETFs is sound?

Q: I do not have technology shares in my RRSP. I'm well covered in energy, financials, utilities, transportation, tel coms and an ETF US equities. There are quite a few techno companies out there. For a long term investment, any suggestions and why.

Q: I'm looking for a ETF holding US stocks that will work well with ZWH.CA
This would be in a RRSP.

Q: Hi 5i, These are my RRSP stocks, etf:
LSPD, WELL, GOOGL, NVDA, SHOP, AAPL, CSU
VOX, BAM.A, QQQ, XIC, VMO, BEP.UN. In around 18 months I will be retired, and would appreciate your comments on my holdings. I'm happy with all of them now, Can you provide any suggestion (goal) to capital preservation, dividends, would you get rid of any?
Thanks

Q: Over the next 5 to 10 years, which index do you expect to perform better? The S&P500 or the NASDAQ100 and what would be your reasoning? Thanks in advance.

Q: Hi team,

I currently hold TD e-Series Funds in my RRSP and plan to replace them with other index ETFs. What would be your top 5 picks for this?
I have a high risk tolerance with a 25 year timeline.

Thank you

Q: Please recommend 4 index etf's Canadian for my TFSA and 4 US for my RRSP. If you recommend Bonds make it number 5 Looking at 15-20 year DRIP and hold.
Thanks
Cec

Q: Hi,
I assume that you will deduct question points as you see fit.
I am considering simplifying and 'conservatising' my RRIF.My wife andI are in our mid 70's.
Portfolio Analytical has again shown that my account is unbalanced with inadequate foreign content. I also need to increase my weightings in Consumer (discretional and defensive), Industrial and Technology.

Could you please suggest 5 names for conservative longterm holds in non Canadian Stocks or ETF's in the following categories?
a)consumer defensive
b)consumer discretionary
c)Industrials
d)Technology .

With many thanks,
David

Q: Hi,

keeping in view the US Withholding tax on canadian investors.

If one has to hold US S&P 500, US mediam &small cap, US IT/technology ETF in canada.

Then which ETF would be be the best for a TFSA and cash account. ( I believe in a RRSP it does not matter ).

I currently hold SPY,VFV, IWO, VGT and QQQ in my TFSA and cash account. Do you think they are OK, or will you recommend some equivalent more efficient ETF's for exposure these sectors.

Keeping in view the difference between a TFSA and cash account, please suggest suitable ETF's for each, which would mirror SPY, VFV, VGT, IWO and QQQ.

Thanks
Harry

Q: I’m 71 years old. As I get older I’ve tried to simplify my portfolio, going from about 50 stocks years ago, to my current portfolio of about 16 stocks, 3 ETFs and 15% cash.
I am a subscriber to your Portfolio Tracking and Analysis service and I’m told I need to make changes to reach a suggested asset allocation and portfolio diversification. Right now I’m tech, utilities and financial services heavy.

Here’s what I’d like to do:
The following set up gives me an allocation of 70% equities, 20 % bonds and 7% cash. I’m comfortable with this and have gone through many 20 and 30% corrections in the past 30 years without too much despair.

In my Canadian cash account I’d have CDZ, FTS, AQN.
Locked in RSP (LIRA) I would have AAPL, ZSP, ZEM.
Unlocked RIF I ‘d have CLF, ZAG.
TFSA would have QQQ, ZEM, ZDI, CSU, TOI, SIS.
I’d like cash around 8% of portfolio.

I’m wondering if I have my portfolio diversification covered and if the right stocks or ETFs are in the appropriate accounts for best tax efficiencies?
Your input would really be helpful.
Thanks
Frank

Q: I am looking for an ETF that contains Google, Amazon and Microsoft bought with US dollars. My goal is to have both market and currency appreciation.