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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: Prospectus was received indicating IPAY ETF is being acquired by ISE Mobile Payment ETF run by ETC. Prospectus indicate ISE Index have the same investment themes as the index followed by IPAY. Specific constituents and weight may be differ. MER of ISE ETF will be .60% which is lower than IPAY (.75%).
1) The proposed reorganization is expected to be a tax-free transaction for federal income tax purpose. Would this be applicable for Canadian shareholders too? Or do we need to wait from a ruling from CRA?
2) What are your thoughts on this reorganization? Any red flags?
Thank you
Read Answer Asked by Karen on July 17, 2020
Q: Hi 5i Team - I have been reading an article in the Globe and Mail about the resurgence of investor interest in the biotech sector with a number of IPO's either recent or planned. Would you be able to recommend a few Canadian companies in this sector based on the following criteria: solid management, cash reserves for at least one year and preferably more, manageable debt, good growth prospects, any size capitalization but small to mid cap preferred, any risk level but not something that is purely speculative. These companies do not have to be on the forefront of Coronavirus research but could have innovative research into any health platforms. I am also interested in the U.S. side of this but will do this in another question. Thanks.
Rob
Read Answer Asked by Rob on July 17, 2020
Q: I have no exposure to silver. Only a little to gold and is it to late for gold ?
could you recommend a Canadian ETF for silver?
do you think silver will play 'catch up' to gold ?
would a precious metal ETF be wise. Which one?
Read Answer Asked by JOSEPH on July 16, 2020
Q: Peter, can you shed any light on the dramatic price action following MOGO's financial release. It shot up from 1.25 to 3.45 following the release (175%+) and has now settled back to around 1.70 as I write this. The trader in me would expect some gap filling here, but I have no idea why the stock spiked as sharply as it did.
Read Answer Asked by David on July 16, 2020
Q: I am looking for basic material exposure in either ZMT XBM XMA XLB or VAW. What would be your pick for a comeback in basic material.
Thanks
Read Answer Asked by James on July 16, 2020
Q: Will you name five Canadian growth companies which you think have a bright future? Thanks for your help :)
Read Answer Asked by christianne on July 16, 2020
Q: I am a retired, dividend-income investor with a company pension, CPP, OAS and some Insured Annuities. I wanted to get your views on our asset allocation. Currently we have the following targets by asset class (in the equity portion of our portfolio):
Finance = 17.5%
REITs = 7.5%
Telecom, Utilities and half of Pipelines = 22.5%
Consumer Staples & Disc = 17.5%
Health = 2.5%
Industrial = 10%
Tech = 10%
Energy and the other half of Pipelines = 10% (actual is 7%)
Materials = 2.5%

While I believe pipelines should be 100% allocated to the Utilities sector, they seem to trade more like the Energy sector...hence the 50-50 split. Also I normally have 20% allocated to the Consumer sector, but we have reduced the Discretionary sub-sector for a period of time due to COVID.

I read years ago that something like 75% of your returns are associated with your asset allocation as opposed to your stock selection. Our portfolio is set up for mostly dividend generation, with some capital growth.

Question 1 = Do you see any red flags with our allocation targets?

When I attempt to replicate the 5iR Income Portfolio into my system, I note 5iR has a significantly higher weighting in Consumer and Industrials...while significantly lower in Health, Technology, Energy and Materials.

Question 2 = Are there reasons for the lower allocation weights in the last 4 sectors...higher risk maybe? I am asking so I can fine-tune my own allocations, which don't change much over the years...maybe 2.5% here or there from time to time.

Thanks for your help...much appreciated...Steve
Read Answer Asked by Stephen on July 16, 2020
Q: If we are closer to the beginning of the cycle (as opposed to being nearer to the end of things), can you give us some interesting consumer cyclical ideas or other names that you think are worth a look as we come off a full stop in the world economy? Thanks
Read Answer Asked by Martin on July 16, 2020
Q: Hello I was wondering your opinion on this little alt meat company out of Victoria BC. They have only been trading since June 17 publicly before that the founders were on Dragons den and they did a crowd source on Frontfundr for 600k. Yesterday they did a new bought deal through Canacord for 5million. These funds are apparently earmarked for expansion in the US. I have personally tried a couple of their products and found it to be quite good even tastier than BYND (side note I still enjoy a good real burger and steak). Lastly this company has inked a few new distribution deals with grocers like Sobeys and increased their online "meat" club subs. My questions is with this new focus on the US market would it be time to take a chance or start a position.? To my understanding they are in the process of completing a new manufacturing plant in Vancouver to help meet their growing demand. Thanks as always.
Read Answer Asked by Kolbi on July 16, 2020
Q: Hello 5i Team.
Point of clarification on your reply to Leonard yesterday regarding ZPAY. My understanding is that any dividends from this ETF will be subject to the with holding tax, which is then recoverable upon tax filing. If this is the case, then does it matter if this ETF is held in a RRSP or cash account, if the tax is recoverable?

Due to the options strategy of the ETF, what tax implications are there on any capital gains the ETF may incur?

Please deduct as required. Many tx for the continued help.

Steve
Read Answer Asked by Stephen on July 16, 2020
Q: i wish to withdraw dividends from my cdn holdings.
based on type of account, in what order should the withdrawals be made?
1 - tfsa
2 - registered or cash?
i will have losses to apply to the withdrawn income
Read Answer Asked by john on July 16, 2020
Q: Any recent news to account for the downtrend over the last 2 weeks ?
Thanks
Read Answer Asked by Karim on July 16, 2020
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