skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello Peter and team,

I am considering how to allocate the US and International equity component of my portfolio. I will be using ETF's solely held in my RRSP account which will comprise roughly 40% of my total portfolio, growing to about 45% with new deposits over time. Currently I am using Canadian-based ETF's (XUU, VGG, XMC for US and XEF and VEE for International) but I am looking at using US-based ETF's, with the idea of both reducing costs (lower MER and avoiding withholding taxes on dividends) as well as introducing some currency exposure.

In a response to an earlier question today, you indicated: "Our one comment is that the suggested ETFs might result in US dollar exposure somewhere close to 50% of the portfolio. This might make sense depending on individual needs, but 50% exposure to the US dollar might be a bit high for a lot of investors. " which has led to some follow-up questions:
In general, what would you consider to be an appropriate range for non-CDN exposure? More specifically, what factors might an investor consider in one's own situation to hep decide where in this range is personally-appropriate or whether it makes sense to exceed the suggested range?
I hadn't considered currency risk very closely, so the other member's question was quite timely and I look forward to your response. I have found 5i to be such an invaluable resource, providing so much opportunity for learning about the world of investing.

Thanks in advance,
Rory
Read Answer Asked by Rory on August 09, 2019
Q: I would just like to make a comment. There is a serious potential for a pestilence to come to the Niagra wine country. It is called the Spotted Lantern Fly and has been destroying vineyards in Pennsylvania and has been sighted in New York State. It may have been a bit of an overreaction but I decided to move on from ADW.A.
Read Answer Asked by David on August 09, 2019
Q: I would like your take, if possible, on the recent Globe interview (https://www.theglobeandmail.com/business/article-star-ceo-of-stella-jones-looks-back-as-he-moves-forward/) Brian McManus, the outgoing CEO of SJ gave on the future of the company. He spoke of the company having a long runway but my take was he went on to state that of the three main areas that they are in - railway ties, poles and treated lumber - only poles really seemed to have much growth. They control the market in ties but that sector isn't growing and he felt expanding lumber into the US seems a bit of a crapshoot (my words).

Are you able to comment on where you see the growth prospects for the company? It would seem to me that they will have to branch out into new areas and while they have a seasoned, long-serving team in place expansion into new avenues is not risk-free. I have been a long-time holder of SJ stock and while I am not concerned with the share price plummeting, I am wondering if there is any growth left. Or do we give the remaining team (and the soon to be named incoming CEO) the benefit of the doubt for now?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on August 09, 2019
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!