Investment Q&A

Q: For the average person with a long time horizon and want to invest in stocks in the form of ETFs, what do you think is the optimal distribution of US, Canada Europe China etc? S&P 500 seem to have done better historically than other markets. But does that mean I should only invest in vfv?
And what do you think of the weighting of VEQT?

Q: Hi, l have some cash to deploy in my cash account. I have a full position in ZCN. Thinking of buying full position in BRK and also VEQT full position.
My question is for a conservative investor 65%safer, 35% conservative growth.Would this be too much overlap of similar positions and sectors? Do you have an alternative? Thanks

Q: I would appreciate your general comments regarding these two ETFs, in particular with regard to these as a long term hold for my nephew at age 30. That person also intends to have other funds invested in more speculative, higher risk equities (play money!)
1) Are these a safe hold that should increase in value with general market appreciation over the years?
2) Would you believe the current dividend is sustainable?
3) Are there other options in the ETF world that you might recommend for a long term hold?
4) Again for a long term hold would you prefer something along the lines of buying equities directly, with something like holding one of your portfolios, knowing that he will not be paying much attention to these investments.
Thanks! Paul

Q: Further to my prior question, in looking at ETFs, I often thought why not just buy their top holdings, and that is quite often what I do. However, in trying to find out that info for these two I noticed something I thought was unusual.

For example, the XEQT ETF lists holdings as follows ...
iShares Core S&P Total US Stock Market ... 44.8%
iShares Core MSCI EAFE IMI ETF ... 24.96%
iShares Core S&P/TSX Capped Compost ETF ... 24.86%
iShares Core MSCI Emer Mkts IMI ETF ... 4.97%

This seems to be the total of their holdings (99.59%). I assume these also generate management fees, which seems like an approach to increase fees paid by "layering" their offerings!
Would a person not be generally better off just buying the 4 separately in the percentages to match the XEQT ETF?
... or possibly digging deepr in the layer and finding out what equities they really are holding?
Thanks! Paul

Q: XEQT. Can you give me comparable ETF’s that are as good,or better that charge a lower expense ratio
Thank you

Q: Good morning,

In one response to a question on the choice of a International exposure ETF, the 5i preference was VEQT, XEQT and XWD in that order.

Q1. Has you opinion of the order of these Global ETFs changed in any way and given XWD's 5 and 10 year performance?

Q2. Would you kindly explain your rational for ranking XWD ahead of VEQT and XEQT and even HEQT.

Thank you in advance and I look forward to hearing your response.

Q: What do you think about this ETF?

Q: Hi there,

Can I please get your opinion on HEQT. The asset allocation looks to be different from VEQT and XEQT with its NASDAQ exposure. Do you suspect that over a long period (ie: multiple decades), this will help this etf outperform? How would you rate it relative to VEQT and XEQT?

Thanks!

Q: RESP allocation for 10 & 12 year old kids is currently 100% in VEQT. If it were your account, at what ages would you consider transitioning to VGRO and then VBAL if money was required in 6-8 years. I realize there isn’t a right answer and purely subjective.
Thanks

Q: Hi there, there are many "all in one" etfs to pick from these days. If a person wanted to have a super simple portfolio, what would be your favourite (or the best) ETF to hold to gain 100% equity exposure that would require the least amount of maintenance? I know there is XEQT, VEQT, XAW, VXC, XWD, HGRO and many more. What would be your favourite? (Does not have to appear on the ones I have listed)

Thanks!

Q: I have stayed away from bonds but recently I think it's time to allocate some funds to bonds. I have holdings in VANGUARD ALL-EQ ETF PTFL (VEQT) and VANGUARD GL VAL FACTR ETF (VVL) and would like to divert these funds into all-in-one ETF funds with 60-40 equity-bond funds. What do you suggest?

Q: My daughter is planning to start a new TFSA (full $88K) and contemplating the following:
Option#1, Autopilot All in one global index fund, such as XEQT or VEQT.
Option#2, All in Canadian equity index fund, such as XIU or XIC added to XEQT or VEQT.
Option#3, 5i favourite picks, such as BN, GSY, DSG, TFII, TOI and WSP .
Please advise which option is best for a buy and hold long term TFSA investment or suggest a better alternate. Thank you. Bill.

Q: Hello:

Child turning 18 later this month. For initial $6500 to TFSA would VEQT be better than US only VFV? Very long time horizon and I never bet against USA!

Other options for long term growth?

thanks,

Q: We have been keeping in cash the proceed of the sale of a condo. what would you suggest for a conservative growth ETF in canadian currency. That would represent 10% of our equities holdings. Looking for more growth than yield, as this would be in a non registered account. We would like something all in one, as I do not want to add more names to the list of equities we have.

Q: I am looking recommendation for a solid long term Canadian growth stock, that one can largely purchase and forget it. This is for my grandchildren's portfolios which currently have a core holding of VEQT and small satellite positions in MICROSOFT, COSTCO and Visa. The portfolios are expected to be held for a very long time. I do monitor the positions currently on a quarterly basis.

Any thoughts on this approach and possible securities that would fit the bill?

Q: Hi team!
I am considering a hybrid portfolio of either (A) 80% ETFs and 20% individual stocks or (B) 80% in an All-in-one ETF (VEQT/VGRO) and 20% individual stocks. I understand there may be foreign withholding tax considerations on the Vanguard All-in-one ETFs depending on the account type in which it's held and I'm wondering how significant this actually is.

Questions:

- Which accounts out of RRSP/LIRA, TFSA, RESP, and Non-Registered would US listed ETFs be a better alternative due to this foreign withholding tax drag?

- At what account value would the tax drag from these withholding taxes be material enough to warrant buying individual ETFs (ex. VT, VTI, XUU, XEF) instead of using an all in one fund (VGRO or VEQT)?

Trying to avoid losing 15% or more of any US/foreign dividends due to unrecoverable foreign taxes if possible!

Thanks for your great work!

Q: Thinking of using the 10% cash in my kids RESP to buy QQQ. They won't need the money for 13 years. Does this make sense or is it too risky? The rest of the money is currently in VEQT.

Q: I own above ETF’s in a non taxable accounts for the purpose of relative stability and diversification. I am looking now for the next 12 to 18 months and thinking of concentrating on the Canadian market (VDY) for better return in the medium term.
I value as always your opinion.
Raouf

Q: Hi there, I hold a large amount of my portfolio in these broad based ETFs. I have about 30% in cash. At these levels, would you be adding to these indexes for a long term hold? How likely do you think it is that we would see SPY at 3300 to 3400 range? What would your strategy be to deploy my cash position into equities? Thank you!

Q: Are you aware if there are mounting pressures on ETF providers (Vanguard, Black Rock, etc...) to exit the Russian equity markets? I own VEE, VXC and VEQT for my international exposure, and realized I own about 1500$ worth of Russian stocks. I am not morally confortable anymore with that exposure even though it's a very small weighting. I would gladly write it off of my portfolio... I know this is personal to every investor and that's OK, but some principles come before returns for me...
If it's unlikely Vanguard would make any move towards ETF ex-Russia, I am seriously thinking of selling all (fortunately my exposure is mostly in registered accounts) and buying international alternatives.

What ETFs would you then suggest to get similar international exposure ex-Russia?

Thank you