-
iShares Core Canadian Long Term Bond Index ETF (XLB)
-
Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
Q: Good morning team, sorry, I should have been more specific in my last question. I’d like to purchase XLB and HDIV in either my tfsa and/or cash account. The goal is to produce income. Which account(s) are best suited for these ETFs? Too add to that, how do you feel about HDIV with about a 10% weighting?
5i Research Answer:
Interest is taxed at the highest rate for most investors, so XLB is better in a TFSA than a cash account. HDIV is better (for most investors) in a cash account. We cannot comment on personal position sizes but would be quite comfortable overall with HDIV for an income-focused investor.