Investment Q&A

Q: Thank you for your answer on my question/comment on ETF.
I had missed to mention why I am uncomfortable with this passive investing trend. The markets over many years has been acustomed to this type of "investment du jour" but there is something special to ETF that I forgot to say and why I think it is important.
ETF are among many other qualities supposed to be providing valuable diversity . You did not provided a comment on my question about what I call the tail wagging the dog. If I am right and I do not know if I am (hence my question), then there is NO diversity about buying an ETF as it will behave like a stock and they will force down or up the undervalued securities.
Te ETF's that I buy have an extremly narrow scope and are more induced to react to the underlying ebb and flow value of the underlying asset they are suppose tyo represent than the other way around.
Your comment on this question (very important for me as one of my major belief is into diversification) will be appreciated and if it is too long or irrelevant, please simply keep it private

Q: Hello 5i. Just wondered if you had seen the article on this topic in the Globe & Mail over the weekend. What it suggests is that dividends from US-listed ETFs held in an RRSP account are not subject to US taxes. However, the article states that this is not the case for dividends paid by Canadian-listed ETFs that invest in US stocks. In this case, dividends ARE subject to US withholding taxes, even if the ETF is held in an RRSP account. The article goes on to say that these taxes cannot be recovered. (Same situation would apply to mutual funds.)

Assuming the article got this, I'm not sure that all ETF investors are aware of this nuance.

Q: Which of these do you think is 'better', in terms of dividend sustainability and overall long-term total return (I know you would prefer VGG/VIG to both)? I like the value tilt of PUD.B (P/E ratio less than that of XDU and broad US market), but it is an expensive ETF, with a MER of 0.67 compared to 0.14 for XDU. Do you think the extra MER is worth it? In a market downturn, of course both will suffer, but do you think PUD.B might perform a bit better? Currently, I hold a bit of both, should I continue to hold both or just pick one (and if one, which one?) This is for a longterm hold. I am comfortable with the relatively small (but growing) assets under management of XDU. Thank you.

Q: Do you have any suggestions for US fixed income given the likelihood of 1-3 interest rate increases this year?

Thanks.

Q: 1. In a rising interest rate environment is a convertible bond fund better to hold than other bond funds like xbb, cbo or clf?

2. What would you suggest for the best combination of protection I.e safety and income?

Thanks.

Q: Do you have an opinion re taking a position in this company? Thank you

Q: What is your view on seg. funds, pro's and con's, thanks?

Q: Your opinion on these 3 US stocks please?
1) LRCX
2) ANIP
3) ORLY

Q: just to clarify the question from Allan re CSU.db
I have owned since day 1 and there has always been a misunderstanding on how the interest rate each march is calculated.
It is NOT 6.5 plus the rate of inflation but rather 6.5 plus the rate of CHANGE in the inflation number at the end of the year. IF the rate is neg then it would be 6.5 minus rate of change. Never to go below zero ( as per csu. lol)
So if the rate of inflation is 2% greater then the yr before and is 3.8 % then it is 6.5+ 2
NOT 6.5 plus 3.8

Q: Hi,

Franco-Nevada is down more than 3% this morning after an announcement of a new gold stream acquisition. What do you think of it and why the market does not seems to like it.

Thanks

Q: Hi 5I, in view of future interest rate increases I am looking for investment with some income and protecting my capital. I would like your help in assessing the above, Also, please rate them, perhaps suggesting better ones. Many thanks , J.A.P Burlington, on.

Q: Regarding my question on whether I could use realized capital gains from my TFSA stocks to purchase 2018 TFSA contributions, I realize that the limit for 2018 is $5,500. It was not my intention to exceed the llimit. If I realize capitalize gains in my TFSA can I not use the cash to buy anything I want, (for example a new TV)? Why then can I not use this cash to contribute to my 2018 TFSA to the maximum of $5,500? I did try to find an answer to such a questions in the CRA website and other websites but nothing answered this type of question. Thanks again.

Q: HI....what is your opinion of this company thanks.

Q: I’m looking for an ETF in US$ for consumer descretionary. As always thank you for your advice.
Les

Q: I am seriously considering adding 5000 NLN and 4000 PHO to my TFSA for growth opportunity over the next 1 to 2 years. Are the fundamentals sound for both these 2 companies and would you generally be OK with this choice. Do you have any better ideas of how to invest $10,000 in my TFSA with growth being my main objective???

Q: I am currently using 1 year term GIC's for my fixed income portion of my portfolio. I don't need income and looking to maximize my long term total return (i.e. 10 years or more) with low volatility and relatively low risk of loss compared to equities. Can you please provide me with a few alternatives? I am thinking ETF's might be the way to go but I am open to your suggestions. Thanks for your wisdom.

Q: Can I get your opinion on the following 3 US stocks?
1) KMX
2) ARCC
3) OEC

Q: Could I get your thoughts in the index funds series A available through RBC?

Q: I understand that due to the new US Tax bill, US banks as well as Cdn Banks with US operations such as TD will take a charge in the 1st quarter. Do you think these bank stocks will take a hit this quarter as a result of this charge and thus I should delay investing in TD and US banks.

Q: In answer to my question concerning various choices for US ETFs, you misquoted one.
I had included VTI as one of my pics. Your answer incorrectly listed it as VGI which is a closed-end management company. Symbols can be very confusing. Regards.