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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: In an answer to John you stated that you would expect ZWU " would likely retain its' share price better than UMAX " . Though UMAX hasn't been around long enough for a comparison I think one can speculate on what return might be expected as fifty percent of their portfolio are utility stocks with no calls written on them . So I would think the capital gain would be fifty percent of the utilities index. For example if the index returned 8% annually UMAX should return 4% which would reflect the percentage of the portfolio that is stocks { half the portfolio }. I would think that might be a good educated guess ..... ZWU on the other hand has been around for a while. So my question is has ZWU historically beaten fifty percent of the annual return of the utilities index ? And what has their historical annual percentage been compared to the utilities index ? ......
What I am shooting for here is a way to calculate whether the difference between ZWU's return and the utilities index return is enough compensate for a 5.6% lag in yield between it and UMAX ...... Thanks Garth .....
Read Answer Asked by Garth on August 29, 2023
Q: Wow, 13.7 % is almost too good to be true ; is it ?
This would seem ideal for my RRIF ; a very high yield on solid Canadian companies. Will the covered call aspect make distributions fluctuate ?
I need clarification on the last sentence of your response to John today:

“ZWU will likely retain its share price better than UMAX. “

Are you saying ZWU will not go down as much as UMAX or go up as much ( or both ) ?

Thanks . Derek.
Read Answer Asked by Derek on August 29, 2023
Q: In my previous question, I asked for recommendation for a few AI-related stocks. Your response to my question included a link to a page that contains individual AI-related stocks. I clicked on it, but the link didn't work because of an invalid url.

Would you please either provide the names in your reply or send me another link with a valid url.

Cheers,
H
Read Answer Asked by Harry on August 28, 2023
Q: I would like to know how all in one ETFs, that include bonds and stocks, are taxed in a registered account. Is there an advantage to these ETFs versus holding bonds separately which are taxed at a higher rate than stocks?
Read Answer Asked by Mary on August 28, 2023
Q: What are your top 4-5 picks (stocks or ETFs) for an RRSP with a 15-20 year horizon?

Thanks,
Read Answer Asked by Cam on August 27, 2023
Q: I'm looking to park some cash and let it earn some interest. My bank doesn't offer any meaningful savings interest rate and I'm not interested in a GIC. Can you please recommend a couple of money market funds or ETFs I could buy through my non-registered iTrade account.
Read Answer Asked by David on August 25, 2023
Q: Good morning,

I know this might be an odd question, but hear me out.

What are your thoughts on taking a more dynamic approach with one's cash allocation in a portfolio to enhance yield? I know there are tax and trading cost implications with the following, but aside from these, what are your views on moving cash towards the end of each month, prior to the ex-dividend date, to a covered call fun like HHL, and then sell just after the ex-dividend date and keep in cash until the end of the next month. A fund like HHL appears to have "some" price volatility (of course), but also a yield approaching ~ 9%. It seems that by taking a more active approach to one's cash, and moving it in/out of HHL monthly to coincide with monthly cash distributions, might make some sense. So long of course as you are prepared for the fact that there is ample scope for capital gains/losses that you would otherwise not have if you were to hold just a GIC at ~ 5%.
Read Answer Asked by Trevor on August 23, 2023
Q: When deciding what to hold in a non-registered account, is it more important to maintain adequate exposure to the US with something like VUS, or to keep the dividend tax credit with a CDN option like CDZ or XEI?
Read Answer Asked by Alan on August 23, 2023
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