Investment Q&A

Q: I’m looking for a way to assess the correlation of certain holdings to determine whether it makes sense to consolidate positions.

How would you think about this? Are there any free tools to pull correlations? What kind of correlation figure should one look for when assessing whether two holdings are too correlated to provide diversification value?

Just as one example, I’m looking at VVL and VUN. But please keep your answer focused on the general questions above.

Thanks very much.

Q: I am looking for a Value ETF in American and Canadian funds.

Q: Can you recommend some Value ETFs for Canada, US and International. Ideally looking for ETFs with reasonable MERs.
Thanks!

Q: Hey guys, my dad is 78, what would be your top 3 Vanguard’s value ETF recommendations ?
thank you !

Q: I have stayed away from bonds but recently I think it's time to allocate some funds to bonds. I have holdings in VANGUARD ALL-EQ ETF PTFL (VEQT) and VANGUARD GL VAL FACTR ETF (VVL) and would like to divert these funds into all-in-one ETF funds with 60-40 equity-bond funds. What do you suggest?

Q: Hi,

Is the rotation into the value sector done? or do you think it is still a good idea to stay/buy into value plays.

If so, what is your favourite value ETF in North America and Globally as well. I gave the above ETFs as a guide and please don't be limited to these choices.

Thanks .
Mano.

Q: I'm looking for a global all equity value fund. Since the majority of the investments are outside of Canada am I correct in assuming that they cannot take advantage of dividend tax credits? I was considering ZEQT and XEQT but they are classified as growth funds.

Q: If you were to sell any of the above, list in order your top 5 or 6. Or would you keep the portfolio as is for next 3 years.
Roy

Q: Thank you for answering my question on Value ETFs. on February 9th. You had mentioned DFIV, IVLU and VBR in your selection but didn't include VVL.

I was wondering if this omission of VVL was intentional with some reason behind it or just a slip from your meory.

Few months ago to one of questions, you had mentioned that VVL has done well because it included banks. Do you think US banks still a value play?

Thanks in advance.

Q: I have been working on updates to the growth portion of my portfolio. On the other side, I need to add a significant value component which I find much harder to do. I seacrhed for value ETFs and found VTV and XCV. Can you comment on these and could please suggest/recommend alternatives? Thanks again.

Q: Dear 5i Team,

Thank you for your customary clear cut answers to my earlier questions on Energy sector. Your cautious approach has tempered my enthusiastic embrace of energy stocks and overweighting them in my portfolio.

Which in turn leads me to ask this question:

Which sector at this time you see having positive momentum? How to play that sector via an ETF? I am looking at 1 to 2 years. Should I just buy an ETF like VMO or its equivalent and forget about fine tuning? If possible please suggest alternatives to VMO. (See below!)

Also along the same lines, do you see a sector rotation, from momentum to value? (VVL) I see the 1 yr return on VVL 49% is better than VMO's (32.5% )! Am I missing something here? I thought the last year was a banner year for the momentum stocks.

Thanks in advance.

Mano

Q: I am trying to find a good Emerging Markets Value ETF. I'm looking for something to compliment VWO which I already have. I see Pimco has an ETF PEIFX but I can't find much trading information on this one when I am on the Yahoo Canada site. Is there something similar that you might recommend ?

Q: Dear 5i,
Can you please suggest some Global Small Cap Value ETF's or Funds which are available in either US or CDN exchanges that are worth doing more reading on.
The ETF's can be passive or active.

thanks

Q: what value / cyclical suggestions do you have ETF wise?

Would one play a DOW ETF or the Russell?
or Canadian ETFs ?

Thanks

Q: I asked a question earlier where you responded that VVL would be a good choice. My funds are in US$ in a US account, though, so do you have a suggestion in US$? Thanks again.

Q: Thanks for your previous response confirming these etfs cover major asset classes and geographies for an RSP with 5 years to retirement. Could you please suggest a couple of etf alternatives that could be added to provide a little more torque with a 5 year timeframe. A brief explanation for each would be appreciated. Thanks.

Q: This fund is about 2/3 US. Are you aware of other similar Value ETF’s trading on TSX that would be more international Ie. less US focused. Thank you. Bill

Q: Hi Peter and team,

I'm overweight tech and underweight the US and international by a lot.

I hold XAW at roughly 20% in my RRSP.
Currently have 13k in cash and will have another 15k once PEO shares get tendered in a LIRA account.

Can you recommend an ETF or two that can address both my problems. One that has zero to very minimal tech exposure, no canadian exposure. Preferably trading on the TSX.

Thanks,

Rino

Q: This is about Value play through ETFs.
Two questions. Assuming that Value as opposed to growth is going to get traction in 2021.

1. Small cap value or Large cap value going forward.

2. Which ones from my picks above you think are worth considering. Any favourites?

Thanks

Q: My portfolio is moderately balanced, and do not include internet or technological Cdn values ( as SHOP,CSU,OTEX,BB,KXS,ENGH,LSPD,etc…),or equivalent US stocks. The main reason are that : 1) I feel that prices and ratios are very high 2) My objective is a ” safe mix” of revenues and growth 3) It seems impossible to predict wich Cies will be the “winners” in the future in this new trend 4) I tend to keep stocks and ETF for long term (not too much surveillance needed ) .Do you have any suggestion (stock or ETF) ,and general point of view ? many thanks