Q: I'm a 65 year old div investor with a defined pension. I'm investigating the BMO covered Call Health Care ETF (ZWHC) as a way to play the Health Care Sector as there is not much available in Cdn. I have a question on the cost of this ETF. The fact sheet states Max annual management fee of .65% and then it says an MER of .73%.
Do I add the two % up to equal 1.38% or would I just pay the MER of .73%?
I hold WELL (hoping for growth) but have been waiting quite awhile and nothing much seems to happen. I'm down (-26%). Its been good if you bought lately but if you bought back during COVID, not so much.
I know you still recommend it so should I hope for the best and wait awhile longer (hope not being much of an investment strategy) or move on? VHI seems to be moving better? Appreciate your thoughts.
Do I add the two % up to equal 1.38% or would I just pay the MER of .73%?
I hold WELL (hoping for growth) but have been waiting quite awhile and nothing much seems to happen. I'm down (-26%). Its been good if you bought lately but if you bought back during COVID, not so much.
I know you still recommend it so should I hope for the best and wait awhile longer (hope not being much of an investment strategy) or move on? VHI seems to be moving better? Appreciate your thoughts.
5i Research Answer:
MER is total cost, and includes the management fee. They are not added. Performace/yield as reported is AFTER fees. Fees are accrued daily. VHI certainly has good momentum right now and we continue to like it. We have a report on the company here. WELL's fundamentals remain good. It is up 17% and we would look forward, rather than backward. We think it has good potential still and would not consider it a sell.