Q: What are you thoughts on this one for Income. Is the value slowly being eroded due to ROC ? Any other red flags ?
5i Research Answer:
The ETF has not put out 2024 tax info yet, but in 2023 most of the income was classified as foreign income and none was considered return of capital. Indicated yield is high at 7.02%, but five-year return is fairly weak at 1.79%. 3-year return is better at 2.44% but with a floating rate fund we would have expected better considering the rise in rates in 2022 and part of 2023. Fees are high at 0.70%. All-in, we would not find this very attractive. No red flags other than weak performance.