Investment Q&A

Q: What are your thoughts on these two etfs for retirement income going forward ?

Q: I understand that a covered call ETF will produce lower highs and higher lows compared to a non-covered call ETF. However, what would cause the ETF's to have an inverse relation on a trading day? For example, if we take ZEB and ZWB, I noticed on some trading days in the past (even before the current volatility), one ETF would be up a few % points, while the other ETF would be down a few % points.

Q: Most of my son's assets (all tfsa) are in the etfs zwb, vgg and vee. Would you suggest substituting any other etfs at this point with an eye to catching the rebound? Thank you.

Q: Thanks for your calming influence these days. Also appreciate your expression of empathy in your market update: we all recognize that what is unfolding brings a lot of emotional strain.
I own some ZWB because for the last few years didn't really see any catalyst to make banks move rapidly. Its Beta is 0.94. I am wondering if ZEB would be a better holding during the recovery with its Beta of 1.02. Does the "covered call" aspect of ZWB carry a downside for such market conditions?
Thank you.

Q: Hello,

I am already knee deep in BMO covered call ETF's and down 20% - 30%.

I can dollar cost down and buy more , take the high yield and wait for price to rise
OR
Sell and move on (to what?)

I believe 5i is wary about buying covered call options during a crash due to limited upside potential.

What could I do at this stage to get income of an equivalent yield and possible upside?

Cheers

Q: Hello 5i
This is a mixed bag inquiry. Looking for some perspectives on the above watch list. I m wanting to increase my overall US & tech sector exposure plus add to my CDN financials. All positions have yield income to weather the storm for the next few quarters
I m considering half positions (2%) in each.

Q: I've read the answers to previous ZWB questions and the risk seems minimal now with this decline in price to below $15, given these are Canadian banks. Are the two main risks, reduced bank dividends, and reduced or no income, causing further share price decline? What other risks may affect this ETF, and your thoughts on possible things that could cause a further price decline from here. Thank you.

Q: David Baskin said the big canadian banks have not reduced their dividends since 1964
would you say the dividend is safe on ZWB and is it a good time to buy.

Tom

Q: Have owned these for a very long time.Haven't done too bad just looking to maybe change things up.What's your opinion on these ones?Also can you offer a couple of ideas to replace these two.

Q: Hi gang, I am planning to into investing in bank ETF. Which one would you recommend zeb or Zwb? Or any other you would suggest? 3-5 years hold . Thanks
Alnoor

Q: Hi gang, I have some cash I would like to park for rrsp Acct . Any suggestions I will be happy with total 4-6% returns. In my mind comes zeb-zwb or pwf. Risk? Thanks. Alnoor

Q: Happy New Year 5i and thanks for being there!
I just transferred TDB171 for $6000 from a non registered investment into my self directed TFSA. Thereby gaining 1.7% in MER fees.
TDB171 is about 50% income and 50% equity.
My thought is to redeem these funds and purchase some dividend DRIP eligible stocks.
Looking at purchasing some income and potential growth stocks.
H, ZUT, and ZWB come to mind because their dividends are currently north of 4% and would allow a DRIP return. With the anticipation of the market rising over the next 3 years and a 3-5 year investment period would you see these as safe moves with a reasonable chance of gain? Any other suggestions in any sectors would be appreciated along with your comments which are also desired and welcome.
John

Q: I am looking for a sanity check. I am a retired income investor so I like covered calls like BMO's ZW series. However I believe the market is at or near a bottom so owning covered calls ETFs is significantly less appealing than owning the underlying stocks, especially since I can claim some capital losses. So, for example, yesterday I sold ZWB and bought RY. Am I making sense? I do realize I am a bit less diversified and I realize I would need to buy a few companies to replace say ZWC.
Thanks
don

Q: With the tide running out and lowering almost all "boats", the yields on the examples listed above are becoming compelling for a retired, income oriented investor.

Part of the thought process here is that inflation at least at this point appears to be muted. The yields on the above range from 4.2% to 6.8%. I see these as income producers with a good risk return profile given the size of the share price drops.

1. Do you agree with my reasoning?
2. Would these types of ETF's make sense?

Thanks for your help here.

Q: Folks can you recommend one or a few ETFs that trade in US dollars that would compare with the ETFs listed. I want to put some US cash into lower beta equities and strategies and am thinking that the ETF fees may be worthwhile to gain the covered call approach and enhanced income that results at the additional cost of sacrificing upside in rising markets. Also any comments on this intended approach for an equity investor who is transitioning from a balanced to an income tilt is appreciated - all the best.

Q: Hello,
How effectively can ZWC replace our ZWB and ZWU holdings?

Thanks for your efficient service and re assuring advice.
regards

Q: What are your views on these ETFs? Would this be a good time to buy these ETFs? Is one safer than the other in a broad market downturn?

Q: Banks-increase in interest rates, no increase in savings rates, spread widening.
Insurance Co’s-increase in yield on long term bonds,thus spreads widening.
What is your opinion on owning the above securities. I currently own all except FLI. Thinking of buyingFLI to diversify into insurance Co’s. Thank you for your help

Q: Should I just rut all my money in these Bank ETFs and hibernate for the rest of the year. 3 more rate hikes by the FED should be good for US banks and also Canadian Banks as spreads widen ? Any others you like ? RAK

Q: As a retired couple looking for div. Growth, not to happy with 5% weight in zgi in our rrif. Could u please give a few better options.