Investment Q&A

Q: Hi Peter
Is ZWU a good buy for an income oriented investor? Would you buy it at the current level?

Thanks

Q: Hello, I own above ETF's, and with rising bond yields, is it time to bail out ? If so, which one(s) to let go and which one(s) to keep.
Thanks
Carlo

Q: Are utility stocks and other dividend names under greater pressure with a rising 10 yr yield? If so, could you please explain why? Thanks.

Q: Hi 5i,
This may well be 4 questions, so please deduct points accordingly.
Portfolio Analytics indicates that I'm underweight in Communications Services, Consumer Defensive, Industrials and Consumer Cyclical, and I'd like to top up these sectors.
I try to be a balanced investor and like income, but I don't mind taking on more risk and little or no income on something with a solid premise. Especially right now I'm looking for companies that are poised to benefit from the return to (more or less) normal life that 2021 might bring.
My present Communications Services weight all comes from the following ETFs - TXF, ZDI, DISC and ZWU. Can you provide a few Canadian equities to look at in this sector at this time, other than the big four?
My present Consumer Defensive weight comes mostly from NWC, with a smidgeon from ETFs like ZFI and DISC. Are there two or three Canadian equities in this sector you'd currently recommend looking at?
My present Industrials weight is in FTG (which I'd be happy to sell unless you think it has the potential for recovery in the coming year), QST and XBC. Are there another two or three Canadian names you presently favor in this sector?
And finally, my only Consumer Cyclical other than whatever might be in the listed ETFs is NFI (although I'd have thought it would properly be classified as an Industrial). Again, could you recommend two or three Canadian equity names that might qualify as viable Consumer Cyclical holdings going forward?
Thanks a lot and Happy New Year!
Peter

Q: Thanks for the quick answer. Just a follow up to my "renewables" question. My 3rd question was meant to compare ZUT versus the covered call equivalent ZWU (not ZWC, which I also own). Rereading your answer a few times makes me believe that you thought the intended comparison was between ZUT vs ZWC...not so.

It appears to me that the total return for ZUT handily beats that of ZWU. My question related to where we are in the market cycle. My understanding is the covered call overlay system works best in a slightly rising, flat or slightly falling market...I think. Otherwise the CC ETF will underperform in a bull market. So, based on where you believe we are in the market cycle, which ETF is best...ZUT or ZWU. This ETF is intended to improve my asset allocation by increasing my Utilities and Energy exposure. Again, I already own ZWC. Based on where I think we are, I am leaning towards ZUT for total return. Your thoughts?

Thanks for the clarification...Steve

Q: hi guys are these good to buy and hold do you think there dividends are safe

Q: A few weeks ago you said that close to 40 % of the dividend paid by ZWU in2019 was actually return of equity. Would you know if this would be more or less true about most years?
Also, you don't seem to have a very high opinion of ZWU. Why then do you include it in your Model ETF Portfolio?
Thank you
jerry

Q: For a balanced portfolio with the next 3-5 years in mind, what are your suggested weightings in preferreds, utilities and high yield bonds. Given low interest rates preferreds in particular seem like a place investors will go to seek higher yields with some opportunity for growth.

Q: Hello why is ZWU still down nearly 20% from peak, but XUT is only down about 5%? Does it have something to do with the large yield on ZWU?

Q: Just looking for some info on the cost structure of this product
Management fee-.65
MER -.71 So am i correct by adding these 2 togeather to 1.36 is what it cost me and if so when and how is this paid or taken from my account....thanks

Q: Would you please comment on the Canadian uttilities as a sustaining dividend provider and in particular ZWU and whether the covered call feature has consistently provided a history high dividend yield --- currently at 8+percent.
George Murphy

Q: I have a TFSA with about $33K that I plan to give to my daughter for graduate school in about 2 years. ZWU looks like a good investment, with YTD return of -14.25% and yield of about 7.95%. Would appreciate your comments on ZWU and any other suggestions you could provide.
Thanks!

Q: I'm interested in covered calls and note that ZWU, ZWC and ZWH are all down 15-20% YTD.
For an income portfolio, they look very appealing with their 7% to 9% yield.
Would you recommend to bump up the income?
What % of an income portfolio would you recommend?
Can you rank from most to least favourite?

Q: At this time, would you recommend cover call ETFs for an buy/hold income investor? Can you recommend some cover call ETFs?
Thanks

Q: I am 72 and retired. I have been building a part of my portfolio (58.4%) for the last three years with ETFs. Current holdings are (% weight of portfolio in brackets): zwh (10.5), zwu (9.1), zwc (8.5), mft (5.9), xtr (5.3), xhy (5.2), zwe (4.7), cdz (3.2), zdh (3.2) & zre (2.9). With 24.2% cash, I plan on slowly adding to these etfs. How would you do this? The remainder of my portfolio is in dividend paying Canadian large caps.
Thanks, Jim

Q: Hi General investing question. I have both ETF and actual stocks that are in the ETF. Less than 5 years away from retirement so still looking to build my portfolio. What's your opinion on holding ETF to accumulate income or buy the actual dividend stock and get both income and (hopefully!) growth? Thanks guys

Q: Looking to add some tax efficient income to an otherwise well diversified portfolio. What do you think of the above mentioned ETFs? Could you suggest a couple of more?
Thank you!

Q: Hello to the team
How reliable are the divi. on this companies there are an integral part of my retirement,generally they are less 10 years in the market and being clobbered,should' i reduce some of these position and replace them with some exposure to US. like PDI or wait as long that the divi is there,i'm 76.
Thank You

Q: I just read your answer re the above symbol, Larry Bermans newest addition. My question would be, what would you recommend that has a longer track record and is similiar to zpay's philosophy, maybe not quite the best word for an etf !!. Thank you.

Q: Hi gang, I am looking into buying $11,000 for my daughters TFSA Acct. Should I buy $5500. BMO & 5500. SLF. Or 11,000. Zwb.And zwu or could you suggest me otherwise. Lots of time 15-20years. Open to any thoughts. Thanks be safe.
Alnoor