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BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (ZWA)
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Harvest Industrial Leaders Income ETF (HIND)
Q: Hello 5i,
You recently mentioned HIND-T in a response.
On the surface, this would be ideal for my needs: increase U.S., increase Industrial, and increase dividend yield/income.
Conversely, it is very small (~23 m AUM?), trades very thinly, and is very, very new.
Given the above, how would you rate this equity as an investment for a retiree?
Any other caveats you would care to add?
Any similar, but better, alternatives that you would prefer?
Many thanks for your insights!
Cheers,
Mike
You recently mentioned HIND-T in a response.
On the surface, this would be ideal for my needs: increase U.S., increase Industrial, and increase dividend yield/income.
Conversely, it is very small (~23 m AUM?), trades very thinly, and is very, very new.
Given the above, how would you rate this equity as an investment for a retiree?
Any other caveats you would care to add?
Any similar, but better, alternatives that you would prefer?
Many thanks for your insights!
Cheers,
Mike
5i Research Answer:
We think HIND is a solid option for a retiree looking for sector-specific exposure and income while noting the liquidity and other risks stated. The main caveat we would add is in relation to the covered call strategy. This can make the fund riskier as distributions may fluctuate based on the success of capturing premiums on the written call options. We like the holdings, however, and are generally comfortable with covered call strategies, especially for retirees.
ZWA is another alternative to be considered with an indutrials/covered calls focus. Holdings are different however as it is indexed to the Dow Jones Industrial Average and it is CAD-hedged. ZWA is a much more liquid option but it is quite different than HIND.