Q: I would like to create a portfolio (10 years and more) for a non-profit organization. The return objective is 5% or more. The amount to be invested is $40,000. Is it possible to achieve this objective with ETFs? Which ETFs should I buy for this account?
Or should I pick a few names from your Balance Equity portfolio?
THANKS
Or should I pick a few names from your Balance Equity portfolio?
THANKS
5i Research Answer:
We can't provide personalize direction but certainly we think a total return of 5% is very possible to achieve either through a mix of ETFs or a group of stocks. A dividend ETF such as CDZ yields 3.8% so markets need to only rise less than 2% to meet such an objective. Even a general market ETF such as XIU yields 2.9% so again not much in the way of gains is needed. Note, getting a 5% yield (no capital return) may be more difficult but still doable. A covered call fund such as ZWC yields 6.6%. A group of stocks could also achieve this goal, with ENB, TD (4.93%), T, PPL, BNS, BEPC, EMA all yielding more than 5% currently.