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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: The general objective for my portfolio is quality, dividend growth. Thinking about the REIT portion of my portfolio and recognizing that REIT dividends do not present the best growth opportunity, I am reviewing H&R REIT and Riocan REIT, both of which appear to be in repositioning mode. I could just hang in with them. Or I could sell one and buy an industrial REIT. Qs:
- should I hang in on both? (I am in the money on both).
- if I were selling one, which would you sell?
- of the Canadian industrial REITs, is Dream Industrial your favourite?
- would you consider Dream Industrial (or your preferred industrial REIT) of equivalent quality to H&R and Riocan?
Read Answer Asked by Carl on May 16, 2019
Q: Hi Peter & 5i:
Would you be able to explain what the secondary bought deal offering means when the announcement says:
"The Fund will not receive any proceeds from the Offering. Food Services will distribute the net proceeds of the Offering to its long standing shareholders."
Food Services are selling their shares and then going to issue a "special one-time distribution" from the proceeds?
Thanks so much.
Read Answer Asked by Dennis on May 16, 2019
Q: You responded to a question May 7
"S&P changed GOOG's classification last year, so this is not a bad question on it. GOOG is now classified as Communication Services."
Why is it under technology in the Portfolio Analysis tool? Will you change the sector in the tool? Or do you consider it as technology?
Read Answer Asked by Marco on May 16, 2019
Q: Hi team,

This is a question on sector risk with changing stock classifications. I saw a question recently where you confirmed that GOOG is now classified as Communications. I believe FB, NFLX and the gamer stocks (ATVI, EA, TTWO) have been moved there as well. I tend to run an overweighting in tech stocks, as you know from my questions. It is higher risk, but I follow things closely. To my mind, GOOG, FB, NFLX and the gamer stocks move with tech sentiment, not with the sentiment, if there is any, on Communications stocks such as Verizon or Comcast. So, how can you assess your risk exposure to a particular sector, tech for example, when these new classifications don’t really change their risk levels and can give one a false sense of comfort that you have not exceeded your desired limit on that sector?

Thanks for the insight.

By the way, congrats on the successful launch of PA. It seems to be getting a lot of positive reviews.

Dave
Read Answer Asked by Dave on May 16, 2019
Q: Hi 5i.

I have transitioned from 55 stocks to 25 hybrid (ETF (16) & keeper stocks (9)) 3 months ago, based on 5i Stock & ETF Growth/Balanced portfolios. Sleep better.

Question: Given 'Ya can't time the market', can one successfully/intelligently tweak holdings a bit based on current economic conditions?

Example: Given USA-China trade war risk, move 20% (VEE, VTI, VVL, XEF, AYX) to (ZAG, XBB, CLF, HFR, ENB). If market goes down -2%, swap half back. Another -2%, swap back remaining half; otherwise, do nothing. Do this at most say 3 or 4 times a year.

Am I just kidding myself that ETFs can be used differently than individual stocks?
I did buy more (VVL, VEE) with available cash when they went down -3% (last week) from when I bought them, with little emotion. Just felt 'smart'. Or am I deluding myself?

Thank you for your continued wise advise for 6+ years.
Read Answer Asked by Paul on May 15, 2019
Q: Hello

I am aiming to have about 20% of my equity portfolio in international stocks (ie. not US or Canada). I currently own ZDH (4.3%), ZDM (5.06%), ZEQ (1.87%), ZLD (4.19%) and ZEM (4.15%).

Do these ETFs appear reasonable to you? Do you see any need to change/consolidate, or to reduce MERs? The Portfolio Analyzer recommends VIU, XEF, VEE and XEM. Do you think it is worthwhile replacing my ETFs for the recommended versions?

Also, VEE and XEM do not appear to be as tax efficient as ZEM, or am I missing something?

Thank you for this great service!
Read Answer Asked by Dale on May 15, 2019
Q: Would appreciate your assessment of the merits of continuing to hold half-positions in BOX, NVDA, SQ, and SPOT, in search of above-average returns going forward and comfortable with risk. If you were on the sidelines, would you initiate new positions in any of the holdings, or alternatively are there merits in reducing any of these positions today in favour of more attractive risk/return opportunities in the US technology space (and if so, which tech opportunities have captured your recent favour)? Thanks for excellent services rendered.
Read Answer Asked by Michael on May 15, 2019
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