Investment Q&A

NVHE invests all its assets into NVDA shares, on a 1.25 leveraged basis. It then sells call options on half the portfolio to enhance income. The leverage and options can enhnace yield, certainly. But leverage works both ways, and if NVDA stock declines then the call option premium will only offer a small cushion on the decline.  In other words, these single stock ETFs can lose a lot of money under the wrong conditions. AGNC is a mortgage REIT. Its valuation is low and yield is high, but it has cut its dividend multiple times in the past decade. It is extremely sensitive to the real estate market and interest rates. We would not consider the dividend 'safe' in the sense of the word, but the stock is priced well to reflect this. ENS is a split share company, investing in ENB shares. Around since 2018, it has never cut its dividend and raised it in 2019. We would consider it OK; dividends will stop completely if net asset value breaches a defined level, but we do not see this as a short term risk. But again, we would put this into the 'higher risk' income classification. Here is a primer on split shares.