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iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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Harvest Healthcare Leaders Income ETF (HHL)
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Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
Q: Hi Group i am 74 with a 500k portfolio. I do not need to use this money for another 5 yrs. I would like to slowly convert to dividend / growth / value ETFs. I am looking for yield of 5% or higher along with a 10% growth/value profile. Can yo give me your top 2 picks in the 6 main sectors that fir this criteria along with a few words explaining your selections. Thanks with your help with this
5i Research Answer:
Five years is a relatively short timeframe, and a 5% yield along with 10% potential growth can be quite difficult to achieve with quality. In our screen for this criteria, many covered call funds came up. These provide higher enhanced income and some growth potential, but may lag in a rally a bit. We also would consider bond funds ZHY and ZJK which could do well as rates fall. We would consider HMAX, HHL, ZWU, ZWB, ZWC as well. XEI is a general market ETF with a 5.3% indicated yield.