Investment Q&A

Q: Seeking an conservative - balanced ETF portfolio of $800,000 new money in Canadian Dollars.
Could I have your opinion and thanks for your service.
Rick

Q: Following up on Harrison's RESP question from February 10th, I'm seeking advice on ETF recommendations for my grandson's RESP. He turns two in March 2025, giving him approximately 16 years until he'll need the funds.
I appreciate your ETF recommendations, particularly the split between Canadian and US markets (VGG, ZSP, ZCN, XCG, VDY). I'm also considering ZUQ (BMO MSCI USA High Quality Index), but I'm wondering if it's too similar to ZSP? Your thoughts?
I do not like CDZs holdings as much.
You also mentioned two balanced ETFs in your response (XBAL and VBAL). The fixed income allocation is approximately 40% for these balanced ETFs. In contrast, XGRO and VGRO have a fixed income allocation of around 20%, and XEQT or VEQT have no fixed income. What I like about these allocation ETFs is they have some international exposure.
Considering the long-term horizon, I'm leaning towards XEQT/VEQT, which have no fixed income. My main question is whether the 20% fixed income component of XGRO/VGRO or even the XBAL/VBAL (40% fixed income) is necessary for a two-year-old’s RESP? Or are XEQT/VEQT too aggressive, considering the other ETFs mentioned?
Finally, wouldn't it be more appropriate to introduce a 100% fixed income ETF closer to the withdrawal age or perhaps three years before we start accessing the funds?
Deduct as many points as you think necessary.
As always thanks for the great advice.
Élaine

Q: Can you name a handful of ETF options for long term holds in my son's RESP account. Growth, dividend, and balanced. Looking for exposure in Canada and USA. I don't want the headache of managing stocks for this portfolio. I'd rather have something that I can just buy and not look at it for 15 years until he needs it.

Q: Hello,

I am a 65 year old retiree. I am considered an Alpha-Balanced investor according to Portfolio Analytics.

I need to simplify my portfolio in order to make it easier for my wife to manage as we get older. I like the idea of having all in one ETF's. Based on my Alpha Balanced risk tolerance which all in one ETF's would you recommend investing in for the long term? What percentage of overall portfolio would you invest in each all in one ETF? I realize you don't want to see more than 20% in each one but that would require at least 5 all in one ETF's? I was hoping for fewer.

Thanks for your help.

Q: Out of these four, which one do you think would have the best return over a 3 to 5 year time period? Looking for something "safe" and steady.

Thanks

Q: In an effort to minimize currency exchange costs, I am using separate all-in-one etfs for my CAD and USD accounts. The xbal for the CAD and the AOR for the USD account. I would be interested to know your thoughts and whether this merits attention. The xbal and others similar have huge Canadian weight which I would be happy to avoid. On the USD side they seem to have this sorted. My biggest beef there is that it is very US heavy and frustratingly, not visible in the 5i database. Could you please advise on option of xbal and aor, and also please look into integration of the AOR and comparable series?
Thanks
Peter

Q: For my TFSA, I am hesitating between VBAL and XBAL. Which one do you prefer? Because of the U.S. and international component of these ETFs, will there be withholding taxes in a TFSA or other tax considerations we should know about? Thank you for your guidance

Q: Which one do you like more for a 3-year hold?

Q: If starting an RESP account today, would you go with Portfolio A or B? Will start drawing from account in 5 years.
A. VBAL
B. 40% XHY & 60% XWD, rebalanced annually
Thanks

Q: Hi, retired 68 and living off my investments. No pension except CPP. Cannot collect OAS. Portfolio is stocks and fixed income about 70/30. Getting tired of worrying about individual stocks. Spouse not familiar with managing investments and simplification would be good if I passed. So was thinking of selling all and buying VBAL or similar. Leaning to XBAL due to better yield and returns. Questions:
1. in one of your posts you said you prefer to limit exposure to single ETFs. Please elaborate why. Would some protection be obtained with a 50/50 mix of VBAL and XBAL?
2. With North American markets at all time highs would this be a good time to do this or would some other time, such as a market downturn be better. Most of the funds are in registered funds so tax is not really an issue.
Thanks

Q: For my 6yr old daughter's RESP I hold 50% in XBAL and ~12.5% in the 4 securities listed. When I make my next contribution I am looking to add another position.

Given a 10 year timeframe before the funds are needed what are some names that you would consider to complement the existing holdings?

Q: What are the advantages and disadvantages for an investor to put all their funds in a "balanced ETF", i.e. Vanguard Balanced ETF Portfolio (VBAL.TO) or iShares Core Balanced ETF Portfolio (XBAL.TO)?

Q: Good morning 5i
I sent in a question but it must have gotten lost over te weekend. A member recently said that if he should become incapacitated he left instructions for his wife to sell all stocks and buy vbal, as she was not interested in stocks and this would be a solution.
There are probably many of us in this situation. But,i wonder if one would not be better to sell gradually while alive and capable. After all, you will bot get the big tax hit. Also, in case of the death of one partner, it maybe better to start selling earl, even though it involves capital gains. Because the tax on the one remaining spouse , without the benefit of income splitting will be very high.

One problem i have with this plan is that i have a lot in US dollars. And i want to keep them. One solution i thought woul be to put much more in berkshire. But I don’t know of any US etf that works like vbal. Would you have suggestions on this?
Thanks

Q: Hello, I wanted to buy XBAL for half of my TFSA, but realized there was 15% in the TSX and I already have plenty of that in my cash account. Instead, I am thinking of having 60% in XAW, 25% in XBB and 15% in VGAB. Does this make sense? Thanks!

Q: Good Afternoon,

When using the 60/40 etfs (VBAL, XBAL, ZBAL) in an RRSP, what would you consider to be the most prudent way of splitting up +$100,000 for a long term hold (30-40 years)?

Ie:
100% in one etf?
50/50 split between two etfs?
3 way split between three etfs?

And in general, at what dollar value in a single 60/40 etf do YOU start to feel uncomfortable?

Thank you!

Q: Hello,

This is one statement from the fund facts(The ETF will employ a currency hedging strategy that seeks to hedge its exposure to U.S. dollars or other foreign currencies within the non-Canadian fixed income asset class.)
I assume that the U.S and foreign Equity holding are unhedged? And is the cost to hedge the US bonds included in the MER?

Also if XBAL is held in a RRSP will I get the withholding taxes back from the US dividends.

Thank you.

Derek

Q: Is there any issue with withholding taxes and holding XBAL in a RRSP?

Thanks,

Joe

Q: I currently hold investments in Fidelity Balanced Income Private Pool and Franklin Quotential Diversified Income. I will be transferring the funds from these mutual funds to ETFs with lower management fees. Please provide a list of 5 suitable ETFs and rank them from 1 to 5. Thank you.

Q: Hello 5i, Could you explain what these 4 companies are about and rank them in order from best first. I just retired and am looking for one or two companies where I can sleep at night and earn some income. Thanks

Q: For a mutual fund, do you think the CIBC balance index fund managed by Jacques Prevost is a good overall fund for a conservative investor? Reported returns of 6.7% for 5 and 10 years. Mer of 1.22%. I noted 25% allocation to financials. It’s in my wife portfolio and she was looking for advice. Any comments would be appreciated. Thank you!