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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 roughly equal parts EIF, LMN, and WELL. MY TFSA is roughly 5 % of total reg. and non registered accounts. I am retired and have used my TFSA for more growth orientated stocks; with limited success. I am looking to replace these stocks ( which I also hold in other accounts ) , with HTA. I hold HTA in other accounts as well. HTA gives me access to 20 of the largest tech stocks and an 8% return which I receive every month ( important to a retiree ). Am looking at doing this in stages with EIF first and then the other two depending on fundamentals, relative value, etc.
Would you do this in stages or in one shot recognizing that I own these in other accounts ?
Your thoughts of HTA as a single holding in a TFSA to be representing 8 % of total portfolios ?
Thanks. Derek
Would you do this in stages or in one shot recognizing that I own these in other accounts ?
Your thoughts of HTA as a single holding in a TFSA to be representing 8 % of total portfolios ?
Thanks. Derek
5i Research Answer:
We still view LMN and WELL favourably, especially if the focus is on growth. We would hold LMN and WELL as both have strong growth outlooks which could outperform HTA. We are fine with moving EIF holdings into HTA.
We are fine with HTA, but the total fee it charges at 1.09% is very high for an ETF. Additionally, in a tech rally, there is the potential for the covered call strategy to give back some of the returns on its holdings. A similar option with a tech focus and covered call strategy but with a lower expense ratio is TXF (also yielding over 7% and has outperformed HTA historically).