Investment Q&A

Q: Can you explain the product from Purpose ETF (ticker APLY) in the link below. Seems to be an ETF which owns Apple shares and somehow gives you yield with a call strategy as you hold. What is downside risk ? What is upside ?

Does anyone just hold shares anymore ? The financial wizardry with these ETFs seems like it will all blow up at some point just like CDOs in 2009.

https://www.purposeinvest.com/funds/apple-yield-shares-purpose-etf?utm_campaign=apple&utm_source=bnn&utm_medium=banner&utm_content=takeover

Thomas

Q: Please provide a rundown of the pros and cons of holding a USD stock i.e. Costco (COST) or Apple (AAPL) in a TFSA.

Q: Hello 5i,

We have a full position in VGT and 1/2 position in BRK.B in an RRSP and NVDA, AMD, and Google in our TFSA's.

Do you see reduced growth in the VGT & BRK.B ETF's with AAPL downgrades and a possibility of consolidation of MSFT this year after stellar 2023 numbers?

Would you swap VGT or BRK.B to another ETF for 2024 or just let it ride?

Thank you for your advice

D&J

Q: Please share your analysis of ARM holdings, do they have some sort of competitive advantage? What is your view on valuation?

Q: There is so much buzz in media about the Magnificent Seven- the latest grouping that alleges dominance from these mega cap leaders and how 2024 is likely to see them fall from grace at least in momentum rallies, or at least in contrast to others.
Don’t support this assertion, ie is there relative price and growth rate relative to others such that they are due to get leapfrogged, or worse decline? I feel like this same line has been towed for several years and look at five and ten year growth rates for any of these as examples.
If you had some chunk of change would you lean here or elsewhere, say to financials or industrials?

Q: I hold BRK.B and SPYV in a non-registered account and so far, BRK has had a much better gain than SPYV. Over the next 5 years, do you think SPYV or BRK.B will have the best total return? Is the high concentration of APPL in BRK.B a concern? Do you know where I can get an accurate list of BRK.Bs holdings?
Thanks!

Q: I'm a retired somewhat conservative investor content with slow steady growth and a dividend helps as well. I have been happy with my diversified portfolio but constantly struggle with should I or should I not make these changes;
1. Sell T (non-registered account, tax loss) buy BCE?
2. Sell AAPL (in an RRSP) and buy NVDA?
3. Sell TD (non-registered account, tax loss) and buy BNS?
4. Sell ATZ and or DOO (both in a TFSA) and buy what?
Thank you

Q: You remarked about Apple that "above average market returns will be difficult to come by in the near-to-medium term." What tech-space alternatives would you suggest, if one wanted to move some money from AAPL to a company with better medium term grown prospects?

Q: your opinion on apple

Q: I am planning on transferring 2 of these stocks in kind from my RRIF to TFSA- NVDA,MSFT,or AAPL. Which two would you recommend for a TFSA?
Thank You for your help

Q: In my US denominatedm growth-focused TFSA, I own CRM, PYPL, TOL, AAPL, GOOG, ADBE, QCOM, and NVDA. It is time for me to make my annual contribution.

I am underweight PYPL; should I add to it or replace PYPL with something else? If I should replace it, please suggest two or three good candidates for long-term growth, US-based, sector/cap size unimportant, risk profile somewhere between that of your growth and balanced portfolios. If I remove PYPL, I'd rather add a new position than add to one of my current positions.

In your answer, please do not include MSFT, IBM, PFE or MDT, since I have full positions in these in my other accounts.

I've been a 5i member since 2016 and have been served well by your service; thanks for a great seven years. I remember starting a position in CSU at around $600 and thinking I was 'too late'.

Wishing 5i and all its members all the best for a prosperous 2024.

Q: My wife owns the stocks above. She is looking to add 1 to 2 more stocks in the new year. Can you recommend a couple us and Canadian?

Q: Hi Peter,

From a risk-return perspective over the next five years, which is the better investment option? Purchasing an equal weighted investment in the magnificent seven, SPY, or QQQ? Please explain your rationale.

Thanks George

Q: Everyone, what is the rate of return for the large cap tech stocks vs the Nasdaq 100. For the large cap I would classify: AAPL, AMZN, GOOG, MSFT and NVDA ( you can add more to the list). Please use a time period that you have good stats for but or a 5 year or 10 year return period. I would like to know if it is worthwhile only investing in the big tech stocks overall. Clayton.

Q: Hello,

If you had to pick 3-5 core companies for longer-term exposure to the AI space, who are they and why?

Thank you.

Q: Recently watched the Blackberry move and it was excellent. We know how things ended but they had a good run when they were winning but missed where the market was heading. Looking back over years there was the PC/Internet revolution followed by the mobile/smartphone revolution and now what appears to be the AI revolution. In hindsight buying and holding Microsoft, Apple, Google, Nvidia etc made sense. With AI the next frontier what stocks do you think will be the next big winners; same names as the past or are there new names we should investing in?

Q: Recently a question response included something to the effect that "the Berkshire basket of companies are higher quality than the entire market". I couldn't find the exact answer but I have pondered it a lot!

Would BRK.B be "higher quality" than VFV? I currently hold a decent amount of VFV and a tiny bit of BRK.B. It feels like all "the rules/norms" have been discarded for last several years but for next 5 -10 years which would you favor?

Thanks!

Q: Hello 5i,
I am considering to let go of Ford and Magna as I don't see an EV catalyst for Ford and I am not sure about Magna since the Apple car rumour has disappeared !!!!
If I was to sell both, I like to add to one of the other tech companies ( listed above). On an evaluation basis which one is cheaper and that it has the forward momentum to excel in terms of their existing products and AI?
Thanks
Carlo

Q: I am currently conducting research on Exchange Traded Funds (ETFs) and I am particularly interested in those that include Google (Alphabet Inc.), Microsoft, Apple, and Amazon.

Based on my initial research, I have identified the following ETFs:

1. **Vanguard Mega Cap Growth (MGK)**
2. **iShares Edge MSCI USA Momentum Factor (MTUM)**
3. **BetaShares NASDAQ 100 ETF**
4. **S&P North American Technology Sector Index Fund (IGM)**, **Technology Select Sector SPDR**, **PowerShares QQQ**, and **iShares Dow Jones US Technology (IYW)**
5. **Evolve FANGMA Index ETF, TECH ETF**

I would appreciate if you could provide me with more detailed information if you prefer these ETFs which one 5i would recommend, or for that matter an alternative suggestion if you have another choice.
Thanks in advance
Rick

Q: Long term holding and price appreciation of AAPL and NVDA has led to a U.S. portion of a registered portfolio weighting of 28% and 17% respectively. I'd like to take some profits on these positions and trim these weightings to diversify. Please provide your top suggestions for replacements to consider in Health, Consumer, IT, Communication, and Financial sectors with a timeframe of 10years+