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Exchange Income Corporation (EIF)
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Harvest Tech Achievers Growth & Income ETF (HTA)
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WELL Health Technologies Corp. (WELL)
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Lumine Group Inc. (LMN)
Q: My TFSA is comprised of EIF (up), WELL ( down) and LMN ( up ) in equal amounts and is 4 % of my total ( cash and RRIF ) portfolios. I am not afraid of risk in my TFSA. I am looking at replacing EIF with HTA with the eventual goal of having HTA as my sole RRIF holding. I hold HTA
(5%) and EIF (2%) in my other portfolios. I like HTA for the combination of tech with high income. EIF has been good to me over the years but has been in decline for quite some time. Has something fundamental changed with this company ? HTA would be my only tech holding amongst my portfolios being almost 10% of value. Does this approach make sense?
Thanks. Derek
(5%) and EIF (2%) in my other portfolios. I like HTA for the combination of tech with high income. EIF has been good to me over the years but has been in decline for quite some time. Has something fundamental changed with this company ? HTA would be my only tech holding amongst my portfolios being almost 10% of value. Does this approach make sense?
Thanks. Derek
5i Research Answer:
While we cannot personalize responses, over the past 10 years, EIF has outperformed HTA on a total return basis (including yield), although, HTA has a slightly lower level of volatility than EIF. As a high income play on the tech sector, we think HTA is interesting if one is looking for yield and is optimistic on the long-term prospects of large-cap tech names.
EIF's price has been largely flat for years, but we like the name as an income play. Its debt load is high and has been increasing in recent quarters, which has likely put a ceiling on its price due to high debt-servicing costs.
While we continue to like EIF, given the high AUM of HTA and its high-quality holdings, we would be comfortable with replacing EIF for HTA.