Q: I would like your opinion from the perspective of regular income, and if you would consider an appropriate investment for retiree, likely in non-reg account. Feel free to make an alternative recommendation if not considered appropriate and maybe more fad like. Thanks
5i Research Answer:
SPLT is a new ETF focusing on the preferred shares of split-share companies. Indicated yield is 6.27%, assets $192M, fees 0.50%. It is up 4.62% this year. Considering it is a fairly thin asset category, the ETF has shown good growth in assets. It is is unique so far in the Canadian market. We would like to see more performance data, of course, but so far so good. We do not like the Class A shares of split share companies, but the preferred shares of such are much safer overall and we are more comfortable. We would be comfortable with this as part of an income allocation.