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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: Given the near-term performance of the Utilities sector, it seems these are beginning to underperform the general market. Is the performance related to heightened concerns of pending rate hikes? If so, would it be appropriate to take a wait/see approach and to DCA in the sector over the next little while? Thank you.
Read Answer Asked by Abbas on June 25, 2021
Q: Hi,

I've held FIH.U shares for a short while and have done fairly well. I'm a little confused about the tender offer and dutch auction style. For example, it seems like the stock is trading mid-range of the potential purchase price right now.

I have no real reason to sell, unless this is a trading opportunity where the stock could dip below the tender range after the buybacks are complete.

I'd appreciate your thoughts on the tender in general, knowing you can't give specific advise on if I should hold or put my shares in the pool

The shares are in a non-registered account, so would be subject to the dividend tax event if tendered.
Read Answer Asked by Yasin on June 25, 2021
Q: Hi Team,
Can you recommend a ETF that cater to Chinese Electric Automobile industry either in US or Canadian dollars.
Thanks as always,
Tak
Read Answer Asked by Tak on June 25, 2021
Q: Current owner of NPP314 in my TFSA. I've been waiting for the assets under NNRG to get to a reasonable level prior to making the switch. The last time I looked, NPP314 had roughly $400M and NNRG had $1M. Last night I see NPP314 has $385M and NNRG has over $400M.

Does this match your search engine data? That's quite a jump....to go from roughly $400M combined to $800M combined! Would you agree that it now makes sense to make the switch to NNRG, now that it has a critical mass, along with cheaper fees?

Thanks for your help....Steve
Read Answer Asked by Stephen on June 25, 2021
Q: Hi, looking to high grade my portfolio and swap QSR for MED. Small gain currently with QSR. Can you compare the two fundamentally and do you see MED having higher growth potential? Which would you rather own?

Can you rank these for long term growth? BYD, QSR, DOL, DIS, SBUX, MG, ATZ

Thank you!
Read Answer Asked by Keith on June 25, 2021
Q: Hi 5i Team - In checking Ink Insider reports I've noticed that there's been a lot of selling by officers and directors in the past few months. Do you have any concerns about this and what percentage of shares are held by Insiders today. Also are there are any other fundamentals that you think are particularly important. Thanks.
Read Answer Asked by Rob on June 25, 2021
Q: Hi folks, I am expecting an inheritance of about $50-70,000. I currently have what I would consider a med-high risk portfolio for retirement. I'm 46 so I am a ways from retiring but would rather put that $50-70,000 in a small number of low-med risk equities or an ETF with a good dividend and just let it grow slowly but surely. Can you provide any recommendations?

Thanks!
Read Answer Asked by Brad on June 25, 2021
Q: This is an odd question . U S renters were not obligated to pay their rent due to Covid 19.. This come to an end June 30th and then they have to pay. Do you see many evictions coming. I have not seen articles on the subject.. Then there is exemption of Mortgage Payments under Covid 19.which ends September 30th. Will there be many foreclosures. Are these two items one should be concerned about ? More people living on the street, increase in crime while Defund The Police is front and centre and Police Officers are leaving the forces OR Have government benefits paid to U S citizens been enough to take care of Rent and Mortgage payments. RAK
Read Answer Asked by bob on June 25, 2021
Q: I’d like your thoughts on Emerita Resources (EMO) as a speculative investment. It’s had a big run lately following their apparent court award a contested mining property in Spain. Eric Sprott was interested enough to have put some spare change into it earlier this year, but the company hasn't historically put money into exploration, and doesn’t have any capitalized exploration and evaluation properties on their balance sheet.
Read Answer Asked by petra on June 25, 2021
Q: Hi , please rank their short and long term growth potential . thanks.
Read Answer Asked by victor on June 25, 2021
Q: Thank-you for your great service. The improvements to the site are excellent.

My wife and I are value/income investors, currently focussed primarily on the Canadian Market. We had started our portfolio in early 2020 - and felt that the exchange rate was prohibitive to buy US stocks. Also, with the “Covid Crash” and trying to “learn the market” (more like drinking from a fire hose) we thought it best to focus on companies we knew (Country bias). We have done very well, in a very large part to the 5i community, and have built up a diversified portfolio of 36 holdings (including 2 ETF’s); paying six figures in dividends.

We are about a year from retirement and we have started to diversify more geographically and are looking primarily at ETF’s to achieve this. While the exchange rate is much better, the US now looks expensive to us, so we are looking to focus on the developed International markets. While ETF’s are lower risk, the broad array of options makes our heads spin. If this question is too long, please feel free to edit/omit the above paragraphs.

We have a few questions around ETF’s. Please deduct as necessary. We have read all the 5i Questions and viewed the “Fact Sheets” with the ETF’s mentioned below, as homework, and would appreciate your advice.

1. I like the idea of utilizing covered call EFT’s to help offset some of the lower yields (and potentially underperformance during a market turndown) in some of our growthier positions. For example we have a 1.5% position in LIFE (Evolve Global Healthcare CC Hedged), to help balance out SIS’s lower dividend. What percentage of a portfolio should be covered calls before it starts adversely impacting portfolio returns?

2. We also hold a 2.25% position in ZWE (BMO Europe High Dividend CC Hedged) and are looking to add either a 2.25% in PID (Purpose International Dividend) or ZDI (BMO International Dividend) which offer a decent dividend, and potentially more growth. PID currently pays a higher dividend, and we like that no one company has no more than a 2% weighting. Which of the two would you recommend, or are there other ETF’s you would suggest?

We have considered the impact to our sector weights with the above (as best we can) and will be upgrading to Portfolio Analytics to better allocate these. As we move to increase our weightings in ETF’s this will be extremely helpful.

Thank-you!
Read Answer Asked by Cory on June 25, 2021
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