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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: I have partial positions in listed 10 ETFs - plus JPM Quality US Factor [JQUA] ETF.- did not come up on your list.
Your advice is requested on which ones to move to full positions now:
a) rank those to buy now and add others you like;
b) rank those to buy later when your price points realized
c) rank those that are could be sold.
Thank you
Read Answer Asked by sam on December 14, 2023
Q: hello 5i:
In our various portfolios, we own DIVO, SCHD and MTUM. MOAT is not owned. I've done a fairly deep dive trying to compare the 4 etf's as I'd like to consolidate some of our single companies eg. MRK, LMT etc etc into ETFs to simplify things, and in the case of the RRIFs, to enhance yield. By my metrics, DIVO seems to come out on top on a risk/reward basis and a good balance of yield with growth. I've included MOAT as I'm interested in the concept (but not sold on the ETF). Can you confirm my findings? Would you agree, or what could you add to my findings? Is there a source (Morningstar does a good job, but not great) that would allow me to better compare risk/return of the listed etf's?
I realize there are a few questions here: take as many credits as necessary to answer as I have a lot banked.
thanks
Paul L
Read Answer Asked by Paul on May 29, 2023
Q: Dear 5i,
Comparing MOAT vs VOO it appears that in general MOAT outperforms even thought
MER is considerably higher. It looks like they both distribute dividends but, no return of capital. I am interested in purchasing for my NonReg account and don't want to update my ACB if there is a ROC or phantom distribution. Should I buy one of these or both? Do US ETF's ever have phantom distributions like some Canadian ETF's and mutual funds? I'm afraid I could not find any information on this matter.

thanks
Read Answer Asked by Ian on July 06, 2021
Q: Thank you very much for the warning you offered in the previous question I asked about MOAT. The way I worded it, it may have sounded like I was ready to sell VOO and buy MOAT. But, that is not very likely. But, as you suggested, it may be worthwhile to buy some of this along with the other etfs. You called MOAT an innovative etf . When I look at it, though, its charistics seem to be that it is a wide moat fund. When I look at the companies held I am not sure that they seem innovative. Just that they invest in research and development. I am a little confused by what they mean by innovative. I suppose it just means more aware of a changing environment that other companies. Would that be right? How would you characterise this fund?
thanks
Read Answer Asked by joseph on March 30, 2021
Q: I listened recently to a discussion involving Cathy Wood and the principal of the Van Eck fund. Cathy Wood said that she thinks possibly fifty per cent of the s and p 500 could be negatively affected because they failed to invest in innovation. A bit scary when you own rsp or voo. On the same interview was van Eck, who seemed to agree with her. And partially for this reason they have developed MOAT. He seems to think that with these companies he circumvents the problem. Perhaps this is my reading into his comments. Wondering whether you might think it would be worthwhile to trade out of rsp and voo and into most
Thanks as always
Read Answer Asked by joseph on March 29, 2021
Q: Hi 5i,
Regarding the Van Eyk MOAT ETF which you featured in your 5 from 5i, I notice that there have been 2 questions on this fund. On the earliest question from 2017, I believe, you say that you find it "interesting". And then, by 2019, I think, it is referred to as "gimmicky".
In looking at MOAT I see the holdings are all pretty decent and would probably make respectable holdings on their own.
My questions are:
1.) Would you consider this a suitable investment for a Balanced to Conservative (read retired) investor?
2.) What is your current consensus on this ETF?
For this answer, it might help to know that my U.S. ETF's consist of the following:
EMB (global bond)
VIG (U.S. dividend appreciation)
VRP (U.S. variable rate preferred)
I am also underweight a number of the sectors in which the majority of MOAT holdings fall as well as being underweight the U.S. overall.
I would appreciate any insight you may have about this fund and its potential suitability.
As always - a huge "Thanks"!!!
Cheers,
Mike
Read Answer Asked by Mike on June 11, 2019