Investment Q&A

Q: Hello 5i,

We have a bit of a conundrum on our fixed low-risk investments for our RRSP’s. We have laddered GIC’s (@5%-5.4%) that expire each year to cover costs + we sell some USD fixed income for vacations. We are running dry on GIC’s and our fixed income (BIL) may have rates reduced. We need to replenish Canadian and USD fixed income as those investments are our safety net in case everything goes for a crap for 1-2 years.

Our standard decision in a lower rate environment is to purchase stocks or ETF’s with decent yields but the market is very high, 5-10 year Treasuries seem to be risky now due to Trumponomics, and our time-line is always short for that strategy.

Our goal is to have a 5% increase per year (thru yield or ETF or stock increase). Do you have a few suggestions?

Thank you
D&J

Q: Seeking an conservative - balanced ETF portfolio of $800,000 new money in Canadian Dollars.
Could I have your opinion and thanks for your service.
Rick

Q: I switched jobs and am looking to convert my pension into a lira. Want to put into a low maintenance type of portfolio of ETFs or one balanced growth etf. What would you recommend I consider for a balanced portfolio with 20+ year horizon.

Q: Good Morning;

I am looking for two ETF (preferred) recommendations that as a stand along investment product would include first, holdings representing a well rounded Growth portfolio (for a TFSA) and second, holdings reflecting a well structured Balanced portfolio for an FHSA. My preference for these products is because there is not enough money in either to create that portfolio of stocks and bonds, and I do not want to be trying to pick a solitary stock "winner". The holders of these portfolios do not have the time to learn investing at present, so this approach seems "easiest".

Thanks very much

Q: if a conservative investor wanted to invest in one ETF or stock in their TFSA today was would you suggest? Although the question was one, I would like a ranking of the top 3, Canadian only. please.

Q: Goldman has ETFs that are advertised for downside protection. The 3 ETFs that I stumbled across are GBXA , GBXB AND GBXC. Are these good for investors who find their portfolios are heavily tilted towards aggressive growth? If not these ETFs, any other method or ETFs you can suggest ? (US markets only). This question is prompted by an uneasy feeling that too many US businesses are again overshooting to unjustifiably high valuations. (I did trim but the related capital gains taxes around 34%, make me wonder if I should perhaps have left all those flowers in peace. Understood, one should not allow tax considerations to influence a decision to trim. Nevertheless, I am reluctant to trim more than I already have. Hence the search for a safety net that is available at a reasonable cost for downside protection. Thank you.

Q: I am 25 years old and have my TFSA and FHSA maxed out. I will likely buy a house in 1-3 years. Should I start contributing (and investing) any additional money in my RRSP or in a cash investment account? Which ETF should I invest in? Thanks!

Q: What ETF would you buy to be long the market in this volatile environment (moderate risk - some income if possible)? If you can suggest 3 with a brief comment that would be great. Thank you.

Q: A friend is several years from retirement and is in this (quite good) finanical situation: a teacher who will get an Ontario Teachers' indexed DB pension, CPP and OAS. Owns a modest home in Toronto with no mortgage. No dependents. No debt. Can supplement income after retirement by continuing to teach at about a 20% course load. These income sources would more than cover her living expenses.
She also has an RSP that is currently managed by a financial advisor and holds mutual funds. Friend is asking if she should leave the advisor due to fees and his very conservative management. The RSP has underperformed the markets for an extended period. He sold her holdings at COVID bottom "to avoid further losses" and has said that "at her age" (about 60) she should stay away from equities and hold money market funds or bonds. Since my friend is not financially sophisticated, but is interested in learning, I am thinking a self-directed RSP holding several ETFs might be an alternative for her. Could you suggest three to five ETFs that would provide more growth potential in the 8 to 10 years before mandatory RIF conversion.

Q: How is a DRIP for VBAL advantageous for an investment in an RIF? Would it not be beneficial if the market value or the number of units increased rather than the cost base? I don't understand why my financial adviser would set this up. Please help me understand this investment in a registered account. Thank you for your invaluable service.

Q: Hello Team, I am currently sitting on cash in my FHSA, I would most likely be looking to use these funds in the next 5 years. What is your recommendation?

Q: Following up on Harrison's RESP question from February 10th, I'm seeking advice on ETF recommendations for my grandson's RESP. He turns two in March 2025, giving him approximately 16 years until he'll need the funds.
I appreciate your ETF recommendations, particularly the split between Canadian and US markets (VGG, ZSP, ZCN, XCG, VDY). I'm also considering ZUQ (BMO MSCI USA High Quality Index), but I'm wondering if it's too similar to ZSP? Your thoughts?
I do not like CDZs holdings as much.
You also mentioned two balanced ETFs in your response (XBAL and VBAL). The fixed income allocation is approximately 40% for these balanced ETFs. In contrast, XGRO and VGRO have a fixed income allocation of around 20%, and XEQT or VEQT have no fixed income. What I like about these allocation ETFs is they have some international exposure.
Considering the long-term horizon, I'm leaning towards XEQT/VEQT, which have no fixed income. My main question is whether the 20% fixed income component of XGRO/VGRO or even the XBAL/VBAL (40% fixed income) is necessary for a two-year-old’s RESP? Or are XEQT/VEQT too aggressive, considering the other ETFs mentioned?
Finally, wouldn't it be more appropriate to introduce a 100% fixed income ETF closer to the withdrawal age or perhaps three years before we start accessing the funds?
Deduct as many points as you think necessary.
As always thanks for the great advice.
Élaine

Q: Good morning, I have enjoyed and benefitted from my membership to 5I for many years. I am no longer in a position to actively manage my portfolio on a continuous basis and have been considering moving the core to an all-in- one balanced ETF like ZBAL or VBAL. The simplicity and ease of these types of ETF's appeals to me as I age. What are your thoughts on these ETF's and their place in an Seniors portfolio?

Q: Could you please help me understand the Capital Gains process for VBAL and how it affects my holdings. Actual amount is 0.337068 /share or 1%
"These amounts are for the year-end capital gains distributions only, which will be re-invested and the resulting units immediately consolidated, so that the number of units held by each investor will not change."

Thank you,
Mike

Q: Can you name a handful of ETF options for long term holds in my son's RESP account. Growth, dividend, and balanced. Looking for exposure in Canada and USA. I don't want the headache of managing stocks for this portfolio. I'd rather have something that I can just buy and not look at it for 15 years until he needs it.

Q: Just re-asking a question from 2013 - "Hi..was wondering if there is a screener of non-eligible dividends for tax..bascially want to enusure purchasing correct ones outside of any sheltered portfolios...thanks"
Also, can you advise if VBAL, VGG, VIG have non-eligible dividends.
Lastly, pls advise if there's any way to check before stock purchase what the subcategories there will be of dividend income and interest income.
Thanks for your quick reply to my earlier questions.
Many thanks in advance.

Q: Thoughts on an ETF for cash in a RESP that wont be required for 2-3 years. Would VBAL be a good choice?

Q: HI,

What ETF's would you recommend for a retirement portfolio consisting of 60% equity ETF's and 40% bond ETF's?

Much appreciated,
CG

Q: Good Morning

I would like to increase my US position in my RRSP. I currently cover this US exposure through VBAL(core position) VFV approx 4.5%, Legacy positions of ZLU and ZWH approx, 3%, totaling approx. 31% US. My thoughts were to replace ZLU/ZWH and increase VFV and add EQL to gain broader exposure to US market. Would this give me a good exposure without over duplication? I am retired and 65 and would like a balanced plus approach. Your thoughts or other ideas would be appreciated.

Thank you,
Mike

Q: Are these Canadian income ETFs a good place to sidestep potential Trump tariffs? Do you have other recommendations?