Investment Q&A

Q: S&P500 forward p/e is over 20x (MAG7/tech influence), while equal-weight is likely more reasonable...how should we frame this? Apples to apples stay with the S&P benchmark for historical comparisons and say valuation is expensive? Looking at EW is more reassuring but is it rationalizing? Interested in your take...thanks

Q: Is there an ETF of the S&P 500 without the 35% tech component?

Q: Good Day
Is there an equal weight ETF for S+P 500 like RSP traded in Canada ?
Thanks

Q: could you pls suggest a couple of US denominated etfs that track the sp500 - preferably equally weighted. Thanks

Q: Happy New Year to everyone at 5i

I recently read a recent article in the Financial Post:
“The S&P 500’s performance in 2024 made investing look easy. Why bother with strategy?”

Since the ‘Magnificent 7’ stocks dominate ETFs such as VFV, I’m concerned that the S&P 500 represents a very lop-sided weighting of its constituent stocks. We do hold VFV in several of our combined accounts, but am considering selling 25% of VFV and using the proceeds to purchase some EQL.U, an ETF that has never had a question on 5i. I’m aware that an equal weighting strategy results in a tilt towards mid-cap stocks (a good thing?), has a higher expense ratio (not so good) and has higher volatility (again, not so good).

Do the benefits of equal weighting in the S&P 500 outweigh the disadvantages? What is your take on this strategy? Are there similar ETFs to EQL.U that we could consider? Would RSP be one of them?

Thanks as always for your insight.

Q: If I am wanting to move money into an index fund next year, what are your thoughts on RSP versus VOO? I see they have more of a weighting in Financials and Industrials. Thanks.

Q: Hi 5i Team,

Based on the webinar that Chris presented it appears that the equal-weight S&P 500 has lagged compared to the market-weight S&P 500. Based on this I suspect you would recommend having some exposure to the equal-weight S&P 500? If so, what would be a good ETF that you would recommend or are there any individual stocks within the equal-weight S&P 500 that you think might have a bit more upside than the average?

Thanks as always,
Jon

Q: What US equity ETF do you suggest for a very long time horizon (I’m in my 20s so likely will keep investing for decades)?

Earlier this year I had been adding to RSP since most of the gains were concentrated in the Mag 7. With the market having broadened out a bit, I’m not sure if I should keep adding to RSP or if I’m better off investing new money in VOO (or VTI).

Which of the 3 ETFs (RSP, VOO, VTI) would you expect to have the best long-term total return?

Q: Hi 5i Team,

Is there an ETF equivalent of RSP (S&P equal weight) that trades in Canada? If, not can you suggest a best alternative?

Thanks for the amazing service over the last 10+ years!

Angelo

Q: Any opinion on I Shares XUSC (3% weighted) as a hedge against XSP where there is a major portion allotted to large companies?
I believe this is a new ETF and might, in my opinion, cause one to wait awhile however considering the issuer is there any point in holding off an attempt to partially offset XSP?
Any better ideas would be great.
Thanks

Q: Hello Team,
What would your favourite etfs for this security be, both market weighted and equal weighted?
Thank You,
Barry

Q: I own SPY but since it is largely influenced by big tech, I am wondering if there is a more equal weight USD ETF that you might suggest that would also represent the stocks in the S&P 500 or similar.

Q: Hi,
I read with interest your latest Market Update. I am curious, given your interest rate and market analysis, does the Russell 2000's performance (e.g., IWO) this year indicate anything to you about the possible future direction of markets and the economy? Thanks, Michael

Q: Hello,
The announcement today of Topicus's CEO taking on additional roles have any longer term impact? Also, the shares are not moving much after the results. What is your overall view? You had recommended RSP as the symbol for equal weight ETF tracking 500 companies in US (to diversify from SPY which has lots of tech exposure). Is there a cdn equivalent for RSP. i cannot seem to find one. thanks very much

Q: Hello - for my RIF- I have done well with VOO over the last year or so and am wondering if this is a good time to move to a different ETF such as RSP or IWP. My thinking is if the US economy does avoid a recession and the rally broadens, then maybe there will be more growth somewhere other than VOO. Your comments and suggestions please.
Thanks, al

Q: Hello 5i
I know that you do not have a crystal ball but I was wondering, if the market upturn continues to broaden out beyond a few technology stocks, would it be better to be invested in rsp or in voo?
Thanks as always for your great service

Q: Hello Peter,
I know you have answered this about Topicus special dividend. I find it odd that in the early stages of the company's existence , it is paying out a special dividend. Could this be a sign that the company sees little appetite for acquiring companies and will focus on organic growth? What is a good etf that excludes the magnificent 7 , SPY minus magnificent 7.. Appreciate it and thanks for the service.

Q: Thanks to Peter, Ryan and the 5i Team, my portfolio has recovered from the Tech Wreck of 2022. Much of this is due to my holdings in Nvidia and SMCI. I have been trimming some along the way up, but Nvidia is now over 12% and SMCI is over 6% of my portfolio. This time around, I'd like to hold on to my gains (unlike in 2022).

My questions are: What "sleep at night" ETF or stock might you suggest to put some of my profits into (sector doesn't matter)? Also, what percentage of your holdings would you be comfortable with SMCI going to?

My pension covers my living expenses, so I am able to take a little more risk.

Thanks,

Brad

Q: just wondering what etf in the u.s. you like best for the long term [10 years or more] that has a low mer [eg. spy , voo, vanguard,etc] and pays a reasonable dividend.

Q: With recent gain in tech sector, are you concerned with valuations getting stretched. Is there some kind of euphoria being building which draws some parallel to 2000 tech bubble. Like 20-30% jump on META, NVDA, SMCI, ARM. Is there a suggested to mitigate risk while maintaining decent exposure. Thanks