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: 3 short questions:
(1)XSU:CA is the TSX listed hedged version of IWM:US. Is there an unhedged version of IWM:US on the TSX?
(2) Is there a listing on the TSX for IWN:US; either hedged or unhedged?
(3) XSMC:CA (100% IJR:US) has net assets of only $35M compared to net assets of $544M for XSU:CA (100% IWM). Can I conclude from this that IWM is the more popular US small cap ETF in Canada? 5i research has suggest the IJR holds larger, possibly more stable US small caps compared to IWM.
Thanks!
Read Answer Asked by Grant on February 26, 2024
Q: Peter et al:
I sure hear a lot on BNN and read in the G&M about small caps making a comeback. Think I heard the same thing last year at this time. Would you invest in small or mid caps or split it up to include both? If so for small would you choose IWN, IJR, or VIOO ? IWO has a good deal of unprofitable small growth companies, that is why I chose IWN as a contender, or is it the same. If your choice would be mid caps which of VO or IJH and why.
Thanks ben.
Read Answer Asked by BEN on January 24, 2024
Q: I want to add a US small cap ETF and am looking at IJR, IWM and IWN. I recognize that all small caps bring higher risk, but can you please rank these 3 ETFs, with the ETF with the best quality stocks first, ie. rank in terms of lowest risk to highest risk. Does IJR generally hold stocks with higher market caps?
Thanks!
Read Answer Asked by Grant on January 11, 2024
Q: Would appreciate a couple of options for holding some U. S. $$ in a taxable investment account for at least one year. I am more interested in capital appreciation than in current .income in these interesting times. Sector not an issue. Could be individual securities or ETFs. Thanks for your continuing support. Bill
Read Answer Asked by Bill on December 04, 2023
Q: Hello, I am thinking about selling my position in QQQ in favour of small cap etfs spread amongst value and growth. My feeling is that over the coming years they will have a better growth factor than the current large cap companies listed in QQQ. How do you feel about the ETFs described above, or perhaps some alternatives you favour ?
Read Answer Asked by Robbie on July 21, 2023
Q: Thinking about taxation and witholding taxes.
Are there any of these holdings that should not belong in a CELI?

ISHARES CDN SELECT DIVIDEND INDEX ETF XDV
ISHARES CORE MSCI EMG MKTETF IEMG
ISHARES CORE S&P 500 INDXETF(CAD-HEDGED) XSP
ISHARES CORE S&P/TSX CAPPED COMPOSITE INDX ETF XIC
ISHARES MSCI EAFE IDX ETF(CAD-HEDGED) XIN
ISHARES SEL DIVIDEND ETF DVY
ISHARES SP/TSX CAPPD REITINDEX ETF
HYG
ISHARES TR-RUSSELL 2000 VALUE INDEX IWN
SCHWAB STRATEGIC TR US REIT ETF SCHH
VANGUARD FTSE DEVELOPED MARKETS ETF VEA
BMO US DIVIDEND ETF ZDY
ISHARES CORE S&P 500 INDXETF XUS
ISHARES CORE S&P/TSX CAPPED COMPOSITE INDX ETF
Read Answer Asked by Serge on January 09, 2023
Q: Hi group i would like to add to the above names. In what order /why would you recommend. Would you do it now or wait for further clarity in the market I am sitting on 35% cash Thanks for your help with this.
Read Answer Asked by Terence on November 08, 2022
Q: Can I have your opinion on the risk/reward for Small Caps in general right now? Some analysts are suggesting Small Cap valuations are currently low based on their historical position relative to larger cap companies and should “revert to the mean” in the medium term. If you were to invest in this theme what ETF would you use? As always your insights are greatly appreciated.
Read Answer Asked by Stephen R. on September 07, 2022
Q: I am extremely low in International and US stocks, I would like to have an ETF for each that I can put in either my RRSP or TFSA. I know you have mentioned in the past that you like IWO for small caps, is that still the case or is there a better choice.
Thanks for all the excellent help
Read Answer Asked by James on January 17, 2022
Q: Hi Peter, Ryan, and Team,

The most recent question about XMD was on Feb. 23.

For a combined portfolio that is skewed somewhat more heavily to larger-cap stocks, could XMD make a good addition? From the iShares website: "Targeted exposure to mid-cap and small-cap Canadian equities". (I can trade this ETF commission-free.) XMD holds 175 stocks, many of which are favoured by 5i, but of course it also holds some that have fallen out of favour. Please suggest alternative Canadian and US ETFs that you may consider "better" but have the same overall goals of XMD.

As always, your advice is important.
Read Answer Asked by Jerry on October 19, 2021
Q: I’m looking for a US value based ETF that will outperform the overall market if the rotation into value continues, but should just the same be a solid long term (5-10 year) hold regardless of how the growth/value trade plays out in the future. What would be your preference between IWN, IWS, VTWV or is there something else you would suggest?
Read Answer Asked by Steven on June 22, 2021
Q: I own a fully position in IWN - with what's been going on lately with sector rotation (Growth verses value) should i see half the position and buy IWO (growth) or sell the entire position in IWN and buy IWM (both growth and value) ?

Second question I own significant holdings in WEF (overweight) WFG (1/2 position) and lastly Canfor (Full Position) My question is is it time to exit hold or reduce as lumber prices cannot stay at the present level forever?? (your comment please) maybe even sell some WEF some and go with a big house builder or even Lowes (I already own Home depot ) your guidance is appreciated
Read Answer Asked by Terence on April 13, 2021
Q: Lately I've noticed a lot of people on Fintwit commenting about the market switching from growth to value. A lot of them seem to be bullish on IWN. I already own IWO, and have enough cash to also buy IWN. If we are moving from growth to value, would IWN outperform IWO? Is there a big difference between them?
Read Answer Asked by Ed on March 16, 2021
Q: I was reading something from Paul Merriman where he recommends allocating a portion of your portfolio to a small cap value fund, particularly for investors with very long time horizons as he claims that historically this is one of the best performing categories over long periods. How do you feel about this strategy? I was considering either IWN or VTWV. Do you have a preference between these two and can you suggest a similar ETF for international (non US) small cap value?
Read Answer Asked by Steven on January 07, 2021
Q: Hello Peter and Team
I would like to invest in the Russell 2000 ETFs.
In the current and the midium term market conditions what will be your advise for the most appropriate ETF.
IWM or IWO Growth or IWN Value.
Tahnk you, I value your opinion
Raouf
Read Answer Asked by Raoul on December 07, 2020
Q: I have owned Russel 2000 Growth, as per your model growth fund for several years and over the long haul it has been a good performer. Thanks so much as usual!

I have recently read a couple of different articles referencing the potential for small cap value to perhaps outperform the market over the coming period of economic growth (ever the optimist). In particular, Simon Consable's article yesterday in the Wall Street Journal "Small ‘Value’ Stocks Are Down but Not Out" These stocks are still amongst the markets biggest losers year to date. What are your thoughts on this hypothesis and would adding the Russell 2000 value be a reasonable way to play this? Are there any individual stocks that you currently like that would fit this thought that are yet to rally?

As always, thanks for the great advise and service,

John
Read Answer Asked by John on June 09, 2020
Q: Happy New year Peter & Ryan!

Very happy with the Growth portfolio performance last year. Quick question on the US ETF exposure. What is the argument for taking the growth 'style' IWO over IWM or the value based IWN?

I know the performance has been better for Growth in the last 10 years, but most of the perhaps 'dated' literature I've read suggests value biased ETF's tend to do better over the long haul and would be curious to get your opinion.
eg) https://tandfonline.com/doi/abs/10.2469/faj.v55.n5.2300)

Thanks!

Read Answer Asked by Elliott on January 15, 2020