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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,

With the rise in the USD and decline in Asian and European stocks and ETF's, is this a good time to purchase ETF's for those zones with the anticipation that the ETF's will increase if the usd declines in value in the next 2-3 years?

If so, can you recommend one ETF for each zone for the cdn and us exchanges?

Thank you.
Debbie and Jerry

Read Answer Asked by Jerry on August 17, 2022

Q: My wife and I treat our individual accounts as a single portfolio. Based on the Portfolio Analytics we are significantly underweight on the US and rest of the world. We have on RRSP representing 12% of the portfolio that will be converted to a RRIF next year that we would like to simplify. We will maintain 40% - 50% in fixed income, but would like to invest the rest in equity ETFs with holdings outside of Canada. Could you please suggest one or two ETF for exposure to each of the US and the rest of the world. Thank you.

Read Answer Asked by Richard on May 31, 2022

Q: Do you have some suggestions for ETFs that have the following characteristics, with a very long-term hold in mind:

- do not include Canadian or US stocks
- could be focused on Europe or Latin America
- could be focused on Asia, preferably with little or (better yet) no exposure to Chinese stocks
- could be focused on other geographic areas you think have excellent potential

Read Answer Asked by Doug on November 22, 2021

Q: How would you rank these two groups of ETFs for future investment returns, where the best is listed first. European ETFs VE, ZEQ, FEZ, & XEU. Emerging market ETFs VEE, XIN, and ZDI. In the two groups if there is a better ETF in i5Reseach opinion, please add it to the list. Please correct the list if I have incorrectly categorized an ETF. Also what percentage of a portfolio should be invested outside of North America. Thanks Cal

Read Answer Asked by cal on July 08, 2021

Q: Hi!

I've heard a lot of people suggest that Europe's various stock markets are better value than the U.S. market, but that Europe hasn't implemented nearly enough stimilus to help drive growth the way the U.S. has. Do you think Europe is attractively valued and if so would this be a good time to start building a position in an ETF with a European focus? Can you suggest a couple of potential ETFs for exposure to Western Europe?

Thank you!
Jason

Read Answer Asked by Jason on March 11, 2021

Q: I hold HEDJ in a non-registered account. At date of purchase some ten years ago, I thought protecting against weakness in the Euro would be prudent. Would you agree that there is no need at present to hedge as above? It would not be tax efficient for me to sell HEDJ and buy an unhedged version so I would rather add to exposure to Europe.
Question: What ETF of stocks of companies based in developed Europe ex-UK do you favor? Is an unhedged version of HEDJ, in US$ (not C$) available? What other r ETFs , in US$ and not hedged, look attractive to you? I prefer ETFs holding less than, say, 70 large caps, incl'g some multi-nationals, all based out of Europe.

Read Answer Asked by Adam on November 25, 2020

Q: Hi Peter and Ryan: Thanks so much for your calming responses to the current volatility in the markets. This is my third time through a downturn since retiring in 2000. It isn't much fun, but intellectually I know that the market doesn't go constantly down as well as it doesn't go constantly up. Your well thought out reasons helps to remind me of this.
My first question is: in what sector do you place Csh.un.? It works best for me in Income Trusts, as that is why I have it. The TSX places it in Real Estate.
My second question is; is this a good time to purchase an ETF such as VEE and or FEZ? I am overweight in Canada and the U.S. and underweight in Emerging markets and Europe.
Thanks so much. Your advice is wonderful for a small investor such as myself.
Cathy

Read Answer Asked by Cathy on November 26, 2018

Q: What are your favorite europe ETF , would probably split 5% of the portfolio (150 000$ total portfolio in RRSP) between 2-3 to get better exposure (euro zone vs euro+uk)(large vs total market)
No hedge etf. 7-10 year horizon

Also, with 30% us , 5% china, 3 % india, 5 europe, 3% XAW, 40% canada, where would you suggest to invest the remaining 14%?

I was thinking 5% japan etf, 3 % frontier etf, 6% basket of EM (to cover taiwan, south korea with minimal china, russia, turkey and brazil allocation)

I have plenty time to manage, so not an issue, but would probably only rebalance occasionally (if worth the fees)

Read Answer Asked by Olivier on October 18, 2018

Q: Hi,I want to diversify my RSP which i already own a large position in Turtle Creek US Fund ,Barometer Global Macro Pool,and Edgehill International Advantage Fund and am thinking of adding the ETF's mentioned to this mix.
I am wondering your opinion on this group as a whole and if you would not endorse any of the additions i am planning.
Thanks,
Brad.

Read Answer Asked by Brad on August 17, 2018

Q: Hi gents and Happy Friday,
You will see from the list below my exposure to Europe is mainly through ZWE and DRG.UN with PPL Corp being one of my riskier stocks which also has major Britain exposure. All together its a small, around 5%, portion of my portfolio. I belive Europe is offering good value but am having difficult finding other decent ways to invest there- especially given that through TD Waterhouse I cannot invest direclty in Eurpean Exchanges without much hassle.

Can you offer 1) some guidance on other potential equities/dividend stocks I could pick up on the other side of the pond that perhaps you have in your portfolios here that I am just not aware are European?, 2) any other companies you are watching with interest not in your current portfolios? Lastly, are you sensing Europe is looking like a good investing ground especially since US is getting so expensive?

If I asked any questions in the wrong way, please forgive me. I am learning and open to any and all correction.

These are my other positions below in case I am not seeing that I have more European exposure than perhaps I think I do.

Thanks for the work you do. I did search for other threads on Europe and did not find any, hence the ask. If I missed them please direct me to the pages.


ENT AMC US AMC ENTERTAINMENT HLDG-A
FIN ZWE CA BMO EUR HI DIV CC HDG ETF
FIN ZWB CA BMO COVRD CALL CDN BK ETF
ENERG BXE CA BELLATRIX EXPLORATION-NEW
ENERG CPG CA CRESCENT POINT ENGY CORP
FIN RY CA ROYAL BANK OF CANADA
FIN TF CA TIMBERCREEK FINANCIAL CRP
FIN TD CA TORONTO DOMINION BANK
FIN CM US CDN IMPERIAL BK COMMERCE
FIN CIM US CHIMERA INVT CORP-NEW
TECH FB US FACEBOOK INC CL-A
FIN MFA US MFA FINANCIAL INC
REAL NRZ US NEW RESIDENTIAL INVT-NEW
COMM VZ US VERIZON COMMUNICATIONS
ENT BCE CA BCE INC
MINING CCO CA CAMECO CORP
REAL DRG.UN CA DREAM GLB RL EST INVT T/U
MINING PSK CA PRAIRIESKY ROYALTY LTD

Read Answer Asked by Derek on March 13, 2018

Q: Hi Peter et al:
I am looking to invest some money in India. The two etf's that I was able to find are xid and zid. I am looking for mid to large cap value,however BMO states that zid is growth oriented and high risk. I am a subscriber to your etf branch but I couldn't find what I needed there. Also what would you recommend for etf exposure to Europe and the Euro, which I believe will appreciate relative to the cad.
Thanks,
BEN.

Read Answer Asked by BEN on February 14, 2018

Q: Hi 5i team,
I would like to purchase two ETFs. One for developed Europe and the other for Emerging Markets. I would use US$ for these purchases. Please advise your top pick for each category. And what is the minimum portfolio percentage to make these purchases meaningful? Thanks.

Read Answer Asked by Willie on January 06, 2018

Q: Most of my international (non-USA) holdings are ETFs that trade in US dollars on US exchanges. This adds a layer of FX (US dollar) into the equation when considering the performance of these holdings. With the quick and drastic FX moves that are becoming more common, Im starting to loathe the FX volatility and believe that my other US equity holdings already provide sufficient (US) currency diversification. What advantage/disadvantage is there in holding international equities in US dollars, and if I wanted to replace each of the above ETFs with a Canadian dollar equivalent what ETFs would you recommend?

Read Answer Asked by Steven on December 14, 2017

Q: Both FEZ and XEU follow similar European stock indexes. Over the last year, they basically tracked each other. However, since May, FEZ has been relatively flat at $40 US, while XEU has dropped by about $2 from $25 to $23 Can. The divergence is difficult to understand, but I assume it is mostly due to three currencies being involved - the Euro, $C and $US. My question is which is the better investment for a Canadian investor given that XEU seems to be going in the wrong direction?

Read Answer Asked by Ken on September 01, 2017