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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: Looking for some guidance on my US equity holdings. All of my US holdings are in the above ETFs in my RRSP accounts. The US portion represents 21% of my total investment portfolio. Generally I look for a balance between income and growth with dividends used to supplement my pension income. I have 9 years before I have to RIF.
I had held VGG and VUN until recently when, based on one of your answers to another persons question, I switched to ZSP as it has a slightly better return, lower MER and higher Tech weighting. Also more friendly tax structure. I also picked up ZUP at that time for more yield but might be ready to sacrifice that holding for one with more growth or simply add it to the other holdings to keep it simple.
Could I have your opinion on my holdings and any suggestions for improvements and why. I am looking for good overall diversification across the US market with a view to a balance between income and growth. Would like to keep my holdings in CAD.
Read Answer Asked by Bruce on June 04, 2020
Q: I recently asked a question regarding switching strategy from etf to individual stocks and i appreciate your answer very much. My question was generated by the response that you gave to James regarding investing in a diversified portfolio. At that time you gave him the follwoing names: TEAM, MSFT, GOOG, ROP, PG, BIIB, VZ, SBUX, COST, JPM.

Just a followup clarification on that suggestion. I wonder, because of the tax advantage for Canadian dividends and the predominance in the TSX of Banks and Telecoms, whether one might be better to replace VZ and JPM by Canadian names? I know that the question asked, I think, specifically for US names. But, just wondering if one held both Canadian and US, whether this might be better? Also, do you think that say, ten like this, is enough diversification on the US side?
thanks
Read Answer Asked by joseph on June 04, 2020
Q: Hi

In my RRSP would it be wise to replace VGG, ZDY, and ZWH with ITOT.

Looking for lower fees and growth.

Thank you

Mike
Read Answer Asked by Mike on June 04, 2020
Q: Hi All, on May 1st I sold 1/2 a position in BIP.UN and put the proceeds into BIPC, since then BIP.UN up 6% while BIPC is up close to 14%, perhaps I should sell the remaining shares in BIP.UN and buy BIPC, these shares are in
an non registered account, if its a 8% difference in 5 weeks what will it be in one year. Thanks as always Anthony
Read Answer Asked by Anthony on June 04, 2020
Q: I bought these three stocks (CAR, LUV and ELY) for the eventual bounce, which has come far more quickly than I imagined. My plan was to set a target and then sell because I don't consider any of them to be especially good long term holds. Are any of them what you would consider to be great companies? Thank-you again for sage advice in turbulent times.
Read Answer Asked by Alex on June 04, 2020
Q: Hi Group appreciate your comments on Gold dropping like a anchor and the strength of Cad dollar I own several gold stocks+ ETfs FSV + GLD appears to be hit the worst. I hold 8% of my portfolio in gold any reason to reduce my exposure. On the currency side what's the outlook for the US dollar seems like its getting hit hard against other major currencies including the Cad $ Thanks
Read Answer Asked by Terence on June 04, 2020
Q: Hello 5i Team. I'm thinking of starting a small position (1-2%) in LIFE.B (unhedged) in global healthcare for both capital appreciation and yield. Fund would be held in my taxable account for long term hold. Given that holdings are geographically; 55% US and remainder European what will taxation look like? I assume that the 15% withholding tax would be apply to the dividend even with geographic distribution of holdings? Any other tax implications that I need to be aware of? Your recent comments on the fund on May 228/28, 2020 were also very helpful. Thx Steve.
Read Answer Asked by Stephen on June 04, 2020
Q: Regarding VFV and SPY, yesterday there was a large disparity between these two around 1%. Today VFV is -0.31% and SPY is +0.30%. I know there is currency involved, but this seems like quite a difference on a higher volume ETF. Any thoughts?

Also, VUN seems to outperform VFV over the longer term. It is not much more in MER - would you choose VUN over VFV for a 10 year hold?
Read Answer Asked by Terry on June 04, 2020
Q: In your response to David's question on May 26/20 you disagreed with his assessment that IBI Group's has a good looking balance sheet. The years 2019 and 2018 are not comparable because of IFRS16. Like other smaller companies IBI did not restate it 2018 numbers for the lease liabilities that were recorded at $67million in 2019. In fact bank debt was reduced by $25 million and cash on hand increased by $6 million. The remaining material debt is a convertible debenture maturing Dec 31/21 which if the share price starts to reflect how undervalued IBI is to its peers, that debt will become equity.
The other adjustment I would like to draw readers attention is that IBI Group has significant insider ownership. As disclosed on page 9 of the Management Information Circular, the partners through a Management Partnership own 6.3 million shares of Non Participating Voting shares convertible into common shares(1 for 1) as well as 7.1 million common shares. On a diluted basis the partners or senior management own 35.68%. Directors and other senior officers own an additional 1.7%. Thank you
Don

Read Answer Asked by Don on June 04, 2020
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