Investment Q&A

Q: Hi,

I use these two broad ETF's to get exposure outside N.A. I'm in my late 30's and a growth investor. I know you can't give personalized advice, but what would be your suggested allocation towards these four buckets, VEE, XEF, Cdn, and US stocks? I have a spreadsheet to keep track of my holdings and allocate my holdings based on where they trade, although many companies may generate revenue in other countries. Is this too simplistic? I'm just trying to keep it easy to manage.

Thanks!

Q: Hello 5i Team,

I'm considering selling my slumping AYX and replacing it with either JD for some China exposure, CRWD, or CRM. Just wondering if I can get your thoughts on this and a ranking for a five year hold. I would be selling AYX with a small gain, but I know it's not expected to do much in the short term and maybe prospects are better elsewhere? Thanks.

Q: hi,
apple is about 14% of my portfolios is good to increase at 20% after the split
thanks Jean guy

Q: My powder keg is dry waiting for the covid 2nd wave and in my opinion anticipated second market adjustment. The recent jitters made me realize I haven't made my buy plan for my cash...I am pleased with my portfolio and don't have any huge gaps, I am slowly switching from growth to income so am looking more toward your income portfolio for inspiration. In Canada ENB and H looked like good buy options and I already own Suncor so would top up on that as well to a full position. In the USA I am leaning towards P&G and Coke. These complement my current holdings and I feel these additions will do OK in a possible extended covid induced economic slowdown as well as be good long term income holdings.

Any names you wished you had added on the last drop or names you are watching with interest?

Q: Going forward past the covid and the US elections, what sectors would you prioritise and what would be your picks in those sectors
Thanks for the great help

Q: I own LSPD which I understand to be point of sale provider to retail, golfcourses, and restaurants. What advantage do you see they have going forward over Square, Touch Bistro, and Shopkeep? What tailwinds and headwinds do you anticipate?

Q: For taxable accounts, a US-listed international ETF (or Cdn-listed ETF, with an underlying US listed ETF) is tax inefficient because the international withholding tax is not recoverable. Purchasing a similar Cdn-listed ETF which holds the international stocks directly (i.e. not a US-listed ETF) is more tax efficient as the international withholding tax is recoverable.

However, there are often advantages to buying the US-listed ETFs as they typically have much larger AUMs, and much lower MERs than their Canadian listed counterparts (which have underlying international-listed stocks). For example, the MER for VEA (US listed) is 0.05% and for VDU (Canadian listed) is 0.22%. The MER "spread" varies considerably between ETFs, and can sometimes be quite significant.

Are you aware of any formula to help an investor determine when it is best to buy the lower-MER US ETF (and pay the higher tax) and when it is best to buy the higher-MER, lower tax, Canadian ETF? Is there any rule of thumb for an investor to use, to decide that once the MER-spread exceeds a certain amount, then an investor should buy the US ETF (as the additional MER costs in buying the Canadian ETF exceed the tax advantages)?

I realize that the result can vary depending on the percentage of non-recoverable international withholding tax, the investors' tax rate, etc. However, any guidance you can provide would be most appreciated. If you are aware of a "formula" to make this assessment, that would be ideal.

If there is no formula, please assume the investor is in a 50% tax bracket, is a long-term investor, the account is taxable, and there are no currency (hedging or exchange fee) concerns.

Thank you again for this excellent service.

Q: I just read an article on China’s Aging demographic causing a market for in home elevators.(Mobility). Would Sis be positioned for this or are their present China market opportunities too small too make a substantial change in their Overall sales. I’m looking for plus growth companies that have a solid base. Thanks
Terry

Q: "Hello 5i team,

As we approach election season and Q4, the markets look to be taking a bit of a downturn that is reminiscent of earlier this year in Feb/Mar.

What are your thoughts on what's ahead for Q4 in terms of buying? Are there any industries and/or names that you would suggest to focus on?

Specifically, I am considering AAPL, MA, SHOP, SQ and AMZN on the current correction, given the upcoming holiday and gift buying season is likely to have a lot of ecommerce action and new apple toys, with payment processing being a natural fit.

If you could suggest your views on which industries and names have typical strength Q4 that would be appreciated.

Thanks very much! "

Q: I finally got around to using Portfolio Analytics on myself. Biggest perk was the totalling of my expected yearly dividends. Mystery solved!
Unsurprising was the overweight tech at 45%.
When one looks at the difference between REAL and SYZ (as examples of software tech) I have to wonder just how useful that advisement is as a total? It seems in software you could have proxies (almost) for the entire market!

Q: What is your overall analysis here? Is this one a Good buy?

Q: Hi team,
What is behind E's latest large spike in volume and price appreciation over the last four days?Have not seen any announcements other than continuing their normal course purchase!
Thanks,
Jean

Q: I have ENB. Would you sell ENB to buy BCE. What geroth is expected in both of these stocks.
Thank you,
PB

Q: Hello again please your thoughts on ADRNY

Q: Hi Folks,
My question is about the concept of a 5 year "stepper" product described by one leading financial institution as having a one-year term and automatically renews for four successive one-year terms on the maturity/anniversary date. The annual interest rate automatically increases on each maturity/anniversary date. The investment may be cashed in full or in part on the maturity/anniversary date.
Rates are year 1 - 0.85%
Year 2 - 1.10%
Year 3 - 1.75%
Year 4 - 2.00%
Year 5 - 3.55%
Effective Annual Yield - 1.846%

For someone who has a portion of their portfolio in GICs, does this type of product make sense? What are the pros and cons please and thank you. Michal

Q: Hi Folks,
Everyone is looking for returns, and income investors are searching for interest and yield. Forgive me if I missed a previous question asked and answered, but would it be possible to give a quick list of the type of fixed income products in the low risk category. For a very conservative portion of a portfolio, with a five year hold, which product(s) do you suggest offer the best risk/return trade off given the current rate situation in the market today? How far on the risk spectrum does an investor need to go to achieve a reliable 2-3% return?
Thank you, Michael

Q: Can you explain why you like TRI so much ?
It’s holding well these days, which is a good sign.
Tell me why I should buy this one ?

Q: New IPO your thoughts on this company, too early topurchase?

Q: Dear 5i,

Will IPL's recent sale of European oil storage business have a meaningful reduction to their overall debt situation?

Q: To add to Donald's question:

i have a position in NFI (now about 2,5 %). Considering that:
-its a long term hold (5 years +, no need for dividend money while waiting)
-that it is hold in a registered account ,so no taxes loss or gain
-that trading fees are not significant

would you keep the current NFI position or switch it to MG ?