Investment Q&A

Q: I have owned all 3 for a few years. I am wondering if I do just as well or better with moving the money to non covered call investments ? I also own ZWU which you like. Please deduct appropriate credits for a comprehensive answer. Thanks Steve

Q: This question will likely apply to any of the covered call funds. In your answer to Greg on Oct. 21, you stated that the yield on this fund was 14.02% but the one-year return was only 4.15%. The fund cost approx $13.06 a year ago and now sells for approx $13.70, which means that your capital has grown by 4.15%. But over that year, dividends totalling $1.92 per unit were received (for a yield of 14%). Doesn't that make the total return on this fund closer to 18%? I assumed that if the unit was worth the same or more than I paid for it in a year, the monthly dividend would not result in any decay and that this amount should be added to the increased value of my purchase. If this were a single stock paying 5% and the stock increased 5% isn't my total return 10%? Is a covered call fund calculated differently?

Appreciate your insight.

Paul F..

Q: Thanks for your reply on my " honking big dividend " question .... Bought one ETF already and GIAX is the next one I am considering ..... I like the idea of a global ETF ..... { Getting away from the U.S. } .....However looking at their website I'm having a little difficulty deciphering just what they consist of and just how " Global " they are ...... Could you break down just exactly what I am considering buying into it's components { It looks like there is some U.S. in there as well } ..... Specifically what percentage of their portfolio is foreign securities and where they are { Europe , Asia, etc. } ? And what percentage of the fund is credit call spreads ? ..... And if you could explain the meaning of the following statement in simple terms ...... " The Fund will sell credit call spreads on one or more Indices to generate income from the options premiums. The Fund will typically sell Index Call Spreads on U.S. Indices. " .... Thanks for your terrific service ......

{ Also GIAX is not in your data base }

Q: I have been asked by a 23 year old to provide suggestions for when she initiates her FHSA.

I immediately thought of the banks , which I believe is the premium Canadian sector for long term growth, growing dividends , and safety. I would also recommend a more Canadian diversified security (UMAX ) for her next purchase. Of the above banking securities ( all owned between my cash, tax free, and registered accounts ), which would you start with ? Would you be comfortable with UMAX as second pick ( admittedly hasn’t done much but provides diversification into large cap companies and a good distribution yield). I am only interested in Canadian securities at this point. Should I be comfortable with this approach? Any thoughts would be appreciated.
Thanks. Derek .
Any

Q: If one wants to invest in the nuclear energy, which seems to have a bright future for the long term, which component stocks will see the most growth in terms of price appreciation. Would it be the builders who build the infrastructure (i.e nuclear plants) or the mineral (Uranium) or the mining companies. Is there any ETF which would encompass all these?

Q: Hi fellows,

Looking for a utilities ETF for a growth portfolio.

What do you think of HUTS-T, HUTL-T, UTES-n (Virtus Reaves Utilities ETF)?

Any other coming to mind?

Many thanks,

Jacques IDS

Q: Peter, I’m also tiring of underperformance of MAW funds. Could you suggest alts for these two please? Thanks,
Rod

Q: What do you think about UMAX in a TFSA to generate monthly tax free income. Are there any issues related to ROC with this ETF in a TFSA.

Q: What two ETFs would you recommend for my Canadian part of my portfolio?

Q: Best junior gold ETF? Silver? In Canadian dollars please.
Thank you!

Q: Could I have your opinion on Global X Artificial Intelligence Infrastructure Index ETF (MTRX.TO). It is a small fund but has outperformed most other AI funds I have compared it to. It seems a good way to invest in AI infrastructure. Thanks.

Q: Can you please suggest US equivalents to these two CDN covered call utilities etf's ?
Thx

Q: Your comments please about this fund for global bond exposure in a diversified portfolio. Are there any ETF's that would be similar in scope and performance.
Thanks, Brian

Q: What ETF would you recommend for a US dollar TFSA that would similar to VUSB?
My understanding is any US interest earned in a non registered account has a 15% withholding tax.

Q: Greetings 5i, I am concerned about the current outlook for preferred shares, say 1 - 3 year horizon. What is your opinion on a switch from preferreds to short - mid term bond etfs over this time period? Thank you.

Q: What are your thoughts on CNYE. How can they offer to pay 32% dividend. Is this worth investing.

Thanks for your excellent service

Q: I have held the Mawer Small Cap Global fund for several years. performance hasn't been too good in my mind. I am just about flat since original investment. How does this compare to other similar funds? Can you suggest other choices that may be a better choice?

Q: I would like to set up a portfolio of approximately $250,000 for my son who is in his mid forties who has zero interest or ability to manage the portfolio. Half the money would be in a TFSA and the other half in a 'cash' account. One possible option is to invest in a number of ETF's along the lines of the MoneySaver, Model Portfolio but not certain that this would be a good option as rebalancing would be required on a regular basis.
The other option that I am considering is to invest in one or more balanced ETF's or mutual funds such as VBAL, VGRO, XBAL, ZBAL, etc, or perhaps MF's such as the TD Balance Index Fund or the CIBC Balanced index Fund.

How would you structure a portfolio that would require little / preferably no maintenance over a long time frame. Thanks

With ETF's such as VBAL, XBAl, are dividends or interest payments reinvested by the 'fund. or is reinvesting of any proceeds necessary?

Q: your thoughts on BTGD

Q: I missed the “rush on gold” and now seeking a method to buy a basket of goods required for EV market. Is there a specific ETF or other type of investment you would recommend?