Investment Q&A

Q: I am looking for income and was wondering what the risks are in covered call ETFs. I am looking at ZWB and ZWU. Would they fare better in a market correction than pure ultility or bank stock ETFs?

Q: I am an income investor seeking capital preservation over capital appreciation. I am thinking of purchasing some or all of these ETFs. Do they meet my requirements? How would a downward market correction affect these ETFs?
Thanks for your assistance

Q: My 29 year old son has $40,000 in a tfsa all in cash. So far, he has little interest in investing. I'm thinking as a possible way to get him interested (and to at least get some kind of return) of suggesting to him that he put $35,000 into a Cdn equity etf and $5,000 into a growth stock. (I would really like for him to just put it into say 4 growth stocks but if the whole thing tanks it will be "dad's fault".) He also has his employer DC pension plan (2 or 3 years in) in which he's invested in life-cycle funds.

Could you recommend an etf and stock for his tfsa? Or would you suggest some other completely or slightly different route to go with his tfsa? Thank you.

Q: What would be your recommended ETF's for the following sectors that would provide safety and a regular monthly income . Financial, Consumer, Utilities ,, Energy, and Healthcare. I have noticed that you generally prefer for retired conservative investors like me to follow more the income portfolio.
Your comments and recommendations are appreciated. Thanks.

Q: I am a retired non-resident and living on dividend income. My portfolio is a collection on higher yielding dividend stocks such as TD, BCE, FTS, AX.UN, ENB etc. (80% of portfolio focused on income)
I also have some lower yielding but higher growth stocks such as SIS, GSY, CCL.B, PBH, WSP. (20% of portfolio focused on growth)
To offset the lower yield of my growth stocks, I am looking into covered call ETFs such as ZWU (yield=6.6%) to bump up my income. I am not concerned with capital appreciation with the covered calls, only safety of dividend. Is a covered call such as ZWU for utilities as safe as it appears for dividend income? Are there any additional risks to be aware of holding a covered call such as ZWU vs the individual holdings within its portfolio?
Are covered calls the safest strategy to generate a 6-7% yield in a portfolio? Any other recommendations for higher yield (such as CEFs, BDCs)?
I am considering investing 10-15% of the income generating portion of my portfolio into higher yielding investments.
What 3 funds/stocks would you recommend I invest in to bump up the yield and thus offset the lower yield of my growth stocks?

Q: If I was to invest 25K, I would receive approx $105/Mn dividend but the cost would be .72% or $180/Mn. Are my calculations correct and if they are, why would I invest in something that costs me more than I'm paid?

Q: I am a fan of covered calls. I am retired and like the income, tax treatment and downside protection. In addition I like the diversity an ETF brings.
I hold all the above but am looking for more diversity. Are there equivalent US offerings? Does BMO have competing products that are more diverse?
Thanks

Q: You recently answered a question on these... would the distribution be income or dividends? Would any be okay in a tfsa or better in an rrsp or non-registered?

Q: Do you have a preference between these funds as a income generator and can you rank them from best to worst? Thank you!

Q: What ETF(s) might you consider best choice(s) for dependable tax efficient income with no concern for capital appreciation whatsoever but capital preservation being very important in both CAD and USD please? Thanks.

Q: do you think this is a good time to buy a bank stock or the ETF. for a long term hold? could you list your top 3 Cdn banks? thanks Jack

Q: I have small positions in zwb and zwc. Would you recommend consolidating into zwc as it has a position in most Canadian banks. Which would you prefer for a long term hold in an rrsp account for income and stability of yield? Thanx for your services.

Q: Can you please help me prioritize these stocks I'm considering for my income account. I understand that some are higher risk. Thanks.

Q: I've never had any interest in ETFs until yesterday a friend told me the error of my ways. He gave me two names ZSP and ZWB that both have annual combined returns (yield & growth) exceeding 20%. It was a real eye opener for sure.

Do you know where can I find reports on line that rate the performance of most Canadian traded ETFs? As well, do you have other ETF names that are comparable in combined returns with ZWB and ZSP that you can recommend?

Thanks.

Q: In a scenario when the market goes down significantly how does a dividend etf with a covered call component react as opposed to a straight forward dividend etf.

Q: Peter and Team, I want to choose some ETFs for my mother in-laws RRIF and LIF. My approach is to be well diversified, looking for some dividend and a little growth to achieve btwn 5 to 10% annually. I plan to select Equal weights using ZLB,ZWB, ZDV FOR Canadian content and ZLH, ZWH, ZHY, and ZGI FOR US Content. Your opinion and any pitfalls or suggestions would be apprecuated.
Thanks, Steve.

Q: Bonjour, I own ZWB. Is it a good idea to also own individual banks such as RBC, TD, etc?
Merci
Ronald

Q: Would you comment on the advantages and disadvantages of using covered call ETFs like ZWU, ZWB and ZWH to increase your yield? Are these covered call ETFs offered by other institutions other than BMO? In a down market does this type of instrument reduce your risk?

Thanks for your advice!!

Q: ZWB, ZWU, ZWH, CPD & ZWE...just looking for a simple ETF portfolio. What do you think of a 20% allocation in each of these names for a decent return with low to medium risk. Thanks.

Q: My 1st week as a brand-new member and I have to say, just love your site! I'm a small investor with $5000 that I would like to put into the financials, in some way. Sounds like you're not fond of the ETF commissions but maybe with this amount, that would be the best option for someone like me? Or, should I buy say, $1500-ish of 3 banks or would you put the whole amount into one bank and if so, which one? I don't really want the life insurance companies at this time and wondered if you could recommend an ETF that doesn't have them in it. I'd be very grateful for any help you can provide. Thanks so much, Peter.