Investment Q&A

Q: After a "crack", and during a potentially persistent bear market, could you suggest some US and Canadian dividend ETFs ( whether standard, enhanced,or even cover call etfs if indicated ),that could maintain more stable revenues during uncertain economic periods ?

Q: Is there any withholding tax on an ETF like VGG in a TFSA when you sell it?

Q: Hi. I recently transferred $20,000 into my RRSP Direct Investing account. I would like to invest the money into some quality ETFs, perhaps three or four. I know you are not clairvoyants, however based on geo-politics and recent tariff threats, which ETFs (either Canadian, American or other parts of the world) would you invest in at this particular time. It would be for a 2/3 year hold. Thanks for the advice in advance.

Q: A friend is several years from retirement and is in this (quite good) finanical situation: a teacher who will get an Ontario Teachers' indexed DB pension, CPP and OAS. Owns a modest home in Toronto with no mortgage. No dependents. No debt. Can supplement income after retirement by continuing to teach at about a 20% course load. These income sources would more than cover her living expenses.
She also has an RSP that is currently managed by a financial advisor and holds mutual funds. Friend is asking if she should leave the advisor due to fees and his very conservative management. The RSP has underperformed the markets for an extended period. He sold her holdings at COVID bottom "to avoid further losses" and has said that "at her age" (about 60) she should stay away from equities and hold money market funds or bonds. Since my friend is not financially sophisticated, but is interested in learning, I am thinking a self-directed RSP holding several ETFs might be an alternative for her. Could you suggest three to five ETFs that would provide more growth potential in the 8 to 10 years before mandatory RIF conversion.

Q: I need to raise some money and own these stocks in an investment account, VGG is about 50% of the account.
I would like to sell 1 or 2. In your opinion which 1 or 2 should I sell?

Q: Hello 5i Team,
Currently building out a small portfolio for my son, with a VERY long time horizon (30 years +). Looking to add U.S. exposure, but instead of picking individual names, I thought I would do this through an ETF or two. Was considering putting 50% of the US exposure into SPY, and the other half into VGG. An alternative to SPY would be ZSP, which I can buy in Cdn. dollars in Toronto. Your thoughts on this strategy and the allocations?
Thanks very much!

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: I have CAD to invest in Canadian-dollar denominated ETFs: (1) Canadian stocks - VGG. XIU XIC XDIV; (2) US ETFs in CAD FX - HXS ZUQ ZMID and ZBK and (3) - EU ETF - HXX. How to go about assessing one against the other. Is there a better ETF in each group you would prefer? Would appreciate guidance on which ones are keepers for long-term hold? How would you evaluate them?

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: Just re-asking a question from 2013 - "Hi..was wondering if there is a screener of non-eligible dividends for tax..bascially want to enusure purchasing correct ones outside of any sheltered portfolios...thanks"
Also, can you advise if VBAL, VGG, VIG have non-eligible dividends.
Lastly, pls advise if there's any way to check before stock purchase what the subcategories there will be of dividend income and interest income.
Thanks for your quick reply to my earlier questions.
Many thanks in advance.

Q: I use VFV for my US stock exposure. Is one ETF enough or should I spread it out over 2 or more.
If more please provide some suggestions.

Q: Good morning all; I've a two part question for you, First, the listed investments are in a RRIF. The current plan is to extract only dividend income, and have some modest stock growth.

I have funds for one more position and I'd like 3 of your suggestions that would add decent dividend income with modest growth of stock value.

Second question is about XLB. It was originally purchased as a post-inflation investment looking for some appreciation as rates declined. While Canada may get a bit more downward adjustment I believe Trump policy will be inflationary. What would be a sound replacement, meeting the dividend and growth goals for the account?

Thanks as always.

Dave

Q: It is rare that I ask this question coming from an 84 year old senior, but all the above equal weighted ETF's are presently in my TFSA and can't decide how to invest for the 2025 contribution. Which ETF I should I be adding to the above list or should I be adding a new one that is not in the portfolio?
Also are any of those listed that do not belong in a TFSA?
Thanks for your usual great service.

Q: What would be the iShares equivalent of VGG:CA? Thank you

Q: Looking for investing suggestions for someone in there mid twenties that has a very good job and are just starting out investing, I was thinking buying a few ETFs that auto buy every paycheck through a big bank brokerage arm kind of set it and forget till they figure out if they want to learn more about investing. Also what would be a good basic investing book that teaches how RRSPs and TFSAs work? Is Gordon Pape still around, lol.

Q: Hello Peter,
I tried to balance growth and income as well as dividends (no with holding tax in RRSP for US stocks but there is in TFSA), and hence, can you let me know if these make sense for a mid 20s person starting off to have a more growth in TFSA and more income in RRSP.
TFSA: veqt, vgg, and xfn and maybe xic ( veqt has cdn exposure so thought i would exclude xic )
RRSP: vbal, zuq, xic, and xuu all of these trade on tsx. Much appreciated.

Q: I hold these ETF's in a RESP account and just wonder if all these ETF are different enough to own? Also would be be good to own XAW in the RESP account. Money is not needed for 10 years.

Thanks

Q: Good Morning
Is there an unhedged version of VGH ?
Can you recommend any other unhedged ETF similar to VIG but listed in the Toronto Stock Exchange ?
Thank you

Q: Recently you answered my question regarding US dividend WHT on Canadian domiciled ETF issues (Vanguard Canada, RBC Ishares etc) and noted that withholding taxes are owing on distributions since the Canadian ETF is simply holding the US ETF and the taxes would be levied when distributions are paid by the US ETF to the Canadian ETF.

Some follow up questions:
- I am assuming that the WHT would apply even if the Canadian ETF is held within a registered account?
- Does the WHT explain part of the difference in yield when comparing the US ETF and the Canadian ETF? For example - VIG yields 1.69% while VGG yields 1.17%. Assuming also that the higher MER on VGG also explains part of the yield difference??
- Given these factors - the WHT and higher MER - why would anyone choose the Canadian version of the same ETF. Further to this - In another question posed by Jacques - you point out that the Canadian ETF ZSP would be preferable to VFV since it holds the stocks directly and not thru the US ETF VOO....thereby avoiding WHT's for registered accounts. However - when you look at VOO - the yield is about 26 bp's higher than either VFV and ZSP....again why would you not just buy VOO.

Many thanks

Q: good morning:
if you were going to start buying a etf today that had low costs [mer] in canadian dollars and invested outside of canada and paid a decent dividend which 5 would you look at? can be small cap, european, etc