Q: Good morning,
Just trying to add a few ETF's to boost my yield and add to my diversification. I have a nice base of dividend growth stocks and what to offset them with a little bit of ETF's.
ZSP and SMAX....Is there a lot of overlap or can one own both?
Thanks
Jimmy
Just trying to add a few ETF's to boost my yield and add to my diversification. I have a nice base of dividend growth stocks and what to offset them with a little bit of ETF's.
ZSP and SMAX....Is there a lot of overlap or can one own both?
Thanks
Jimmy
5i Research Answer:
SMAX invests in large cap US equities, which is essentially what the S&P 500 index is, which is what ZSP replicates. So there is certainly overlap. But.....SMAX is a different fund, focusing on yield through call options. We think this differing focus makes it acceptable to own both, with one an 'income' fund with some equity risk and one with straight equity exposure.