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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: Hope everyone at 5i is doing well in these times!

I have been sitting on mostly cash in my RRSP/LIRA and would like your recommendations on the best ETFs to consider for my full US and International exposure. All of these would need to be listed on the TSX as I am purchasing in CAD $. While I know you prefer non-hedged, I’d greatly appreciate if you could explain benefits/workings of hedged vs. non-hedged considering the current environment. And provide ETF recommendations for each.

I am looking to achieve a balance of diversification, reasonable MER, minimizing any withholding tax while optimizing the potential in market recovery. For US, I would like to have a technology ETF, health care ETF and a broader spectrum ETF – but also open to ideas. Also, looking for recommendations on International – one broad ETF or perhaps that and a mix of ETFs. I recognize there can be overlap (e.g. between a tech and broad sector fund), so if you can give me a sense of the degree of duplication that may be present in your recommendations. Perhaps going heavier on tech right now could be a good thing.

While I started off thinking ETF selections would be relatively simple, in reading various Q&A there seem to be many important considerations - your assistance is appreciated. Again, all of these are being purchased in RRSP/LIRA accounts with the goal of optimizing my returns over a 10 year window.
Read Answer Asked by Loretta on March 30, 2020
Q: In response to the question concerning risks to Storage Vault, you stated in your answer: "We see no particular reason why consumers would suddenly pull items out of storage in a corona world, though."

It seems reasonable to me that people whose incomes are threatened will be looking to reduce expenses. Even if their jobs are still secure, caution may prod them to review all costs and cut where feasible. A storage rental unit can cost $1,500 per year to $5,000 per year or more. People forced to stay at home may be spending some of their time reducing their stuff and possibly making room for things currently in their storage unit. Keep in mind, too, that there are calls out to support non-profits, charities, etc. with donations.

This is what I'm currently doing. Granted, this is purely anecdotal based on a sample size of one. But it merits consideration.
Read Answer Asked by Marc on March 30, 2020
Q: Hi,
I’m working on a high quality shopping list during this downturn. We have enough money to start a new positions in either:
1) TEAM or TTD.?
2) NKE or ULTA?
Which companies are a better choice and why?
Thanks and stay healthy,
Kerri
Read Answer Asked by KERRI on March 30, 2020
Q: So with the pipeline companies yielding between 8 and 20% and factoring in a 50% dividend cut, they would still have a nice yield. I suspect that some might increase, or at least slow price decline if cut.
Please list these companies in order of balance sheet strength and debt % and coverage, and order of preference. Thanks
Read Answer Asked by Derek on March 30, 2020
Q: I asked a question about TOY the other day and you kindly answered. But, I have had a nagging doubt about the transaction that you may be able to clarify. The plan is to buy it in rif and in 30 days sell it in my margin account, where I hold it. It seems counter intuitive but I believe I may have read that it is not 30 days that I must keep it before selling but 60. Thirty days before and thirty days after. I can't really see clearly on this and wonder whether you could clarify
thanks
Read Answer Asked by joseph on March 30, 2020
Q: Good morning,

Looking to clean up my oil and gas names but don't mind keeping some or adding others to maintain some exposure.

How would you rank TOG/TOU/BTE/WCP in terms of bounce back potential/likelihood of survival/balance sheet strength? What is you top two?

Do you much prefer SU, PXT, FRU, BIR vs the above names? What are your favourite oil/gas names at this time?

Thanks
Read Answer Asked by Angus on March 30, 2020
Q: Hello,
I presently have a LIF and a RRIF majority is invested in zwc and zwu along with some other less then ideal stocks [interpipe,fru,hot,bpy] , have gone from 550k to 350 k in a month, expensive lesson on proper portfolio construction I guess. Would you suggest selling the covered call etfs and buy non covered call versions at this point in time ? Am I correct in thinking If the tsx returns to 17,900 again zwc and zwu will not return to previous nav due to covered call loss ? Thanks very much for Your help, great website.
Read Answer Asked by Kelly on March 30, 2020
Q: Good morning 5i
And thanks for the continuing good advice in this difficult time. I know that you lack confidence in Toy's management following their errors during the best selling season and their failure in estimating future revenu. But, i have, now a small position, in a non registered account. I am thinking about buying the same amount in a registered account and in a month selling in the non registered account. This will allow me to take the tax loss selling, without fear that the stock shoots up in that time. i take seriously your concern about toy. But, i imagine nothing catastrophic will happen in a month, would you agree?
Thanks
Read Answer Asked by joseph on March 30, 2020
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