Investment Q&A

Q: I currently have HCAL in a growth orientated TFSA and I don't think this is a good fit.
Currently, I hold Goog, SHOP, LMN & CLS. Do have a few ideas for a stock that could replace the HCAL ETF?

Q: ZWB or ZEB Which would be the preferred etf to hold in a TFSA account?

Q: Just finished reading the Money Saver's email warning " Avoiding The Yield Trap " on covered call ETF's . Where it mentions ETF's yielding in excess of 10% yet uses a BMO banking covered call as an example . I believe all the Hamilton ETF covered call products yield in that 10% or better area and in the case of the banking ETF ZWB used as an example, HMAX yields 15% which beats ZEB's 10 year return by over 5% . And that doesn't take into account the 50% of the HMAX portfolio that contains the underlying stock which should return 50% of the return on ZEB .....If ZEB over 10 years returns 9.6% then HMAX should return the annual yield of 15% plus 4.8% reflecting the 50% of the portfolio containing the underlying stock .... There will also be a small capital gain/loss reflecting the covered call side of their holdings which I have no idea how to calculate so have ignored .... Please explain how I would be missing out growth in the banking sector using the example the Money Saver used were I to purchase HMAX instead of ZWB ? 15% + 4.8% = 19.8% which doubles ZEB's return ...... Please explain the flaws in my logic. { I suspect they are there I just don't know what they are }

Also could 5i give me a list of all the Hamilton ETF products that operate like HMAX { 50% of the portfolio with the underlying securities } with an explanation of what sector they represent, their current yield in percent , and annual dividend amount { I'd like this number so I can calculate the yield on any given day while I follow them and make my decisions on whether and when to purchase }

Thanks for your great service in helping us DIY investors ......

Q: Could you please give me a Canadian ETF for each of the 11 GICS sectors within the TSX? An ETF that best represents the respective sector would be ideal. Thank you very much.

Q: I recently sold BNS to harvest a capital loss with intention of repurchasing it after 30 days. In the meantime, I purchased ZEB while the 30 period passes. Is ZEB considered a "similar" security and therefore, I am unable to claim this loss?

Q: For a purchase today would you pick ZEB or XLF? Or perhaps you have a preferred alternative in the financial sector?

Q: For a long term hold (15 years) in a RESP, would you prefer ZEB or ZWB and provide reasons why. Also any other suggestions would be appreciated.

Q: I seem to recall one of the "Market Masters" saying the time to load up on Financials is after they have been crushed. I know you don't necessarily like the expression "load up" but if you wanted to increase your Cdn bank exposure are there one or two you think stand out as having the biggest bounce potential from here, or would you forget about trying to be right on one or two securities and just buy the ETF if you believe the whole sector might recover from these levels? Thanks for your thoughts.

Q: Can you recommend an etf/fund that tracks the Canadian banks?

Q: HI;
Today you had a question from Tim concerning the banks, and their outlook. I would like to buy some BMO; ZEB, however in the fund facts they state that they distribute any realized capital gains in December.
I do not want to get a tax slip for the yearly gains. Is my thinking off course? What do you suggest? , besides buying 6 stocks. If i wait till January , the price may have appreciated a lot.
Thanks, BEN.

Q: Is it time to buy ?

Q: I have both of the above ETF's. Thinking of selling all of ZWB and adding to ZEB . While I like the high yield of the covered calls I think there is better opportunity for capital appreciation. with ZEB. as the values of all the banks are down. This would be aa long term hold. Your thoughts .

Q: What is your favourite etf for Canadian banks? Is CPD a good way to gain exposure to them?

Q: Do you feel it is time to drop Canadian banks and move on to something better for income?

Q: Doing a little research with Google I found that the TSX has had an average annual return of 7.94% over the 50 year period of 1971 to 2021 . { Please confirm or correct that number ? } I know 5I doesn't " like " to give portfolio weightings but I have in the past seen you comfortable up to 15% for some ETF's . Would HMAX be one of them ? It looks to me like I can have my cake and eat it too as it's dividend is superior to that of the average annual return of the TSX . Not quite, but close to double ......

Also I have always wondered just how much difference in performance { percentage } there would be between these three products { ZEB. ZWB out of the money calls, and HMAX in the money calls } . In the case of a 10% correction in the financial sector and also in the case of a 10% rise in the financials. Please speculate on what you would expect the return percentage for each . { you will have to speculate for HMAX because of its short history and supposed lack of volatility due to the use of in the money calls } This will help me grasp what to add or subtract to that 14% dividend for HMAX under the two scenarios ......

Q: If one is looking to own a banking and utility ETF (not covered calls) which would you suggest?

Q: Growth investor, high risk tolerance, who enjoys dividends as well. Im currently sitting close to 21% in Financial Services, a combination of long held holdings with big gains; GSY, SLF, newer purchases down slightly; ZEB, HCAl, and the newest and worst performer ECN. Stock positions are close to 5% each, I add or trim accordingly, ETF's are smaller. I wrestle with knowing holding good companies long term is the way to outperform, against opportunity costs of holding underperformers and or overweighting the wrong sectors for the year. If you managed your own $, what % would you hold here, if trimming, what order ? Emotionally it's much easier to trim GSY with big gains than ECN at a loss, but then there is the trimming the winner and holding the looser thing?

Q: Good morning,

I'm considering adding a Financial ETF to my overall portfolio and would appreciate your thoughts and preference between a US ETF and a Canadian ETF along with your best idea/recommendation for each.

Thank you.

Q: I am new to the forum and 5I. Thanks for your great information! I wish I had subscribed earlier.
Can you give me a long term chart on the value and or return for these 2 ETFs? Because of the different dividends it is hard for me to value the two investments. Do you have a preference?
Thanks again
Richard

Q: Do you think these ETF's are worthwhile investments in the Cdn. Bank area?
They both have high yields - are they sustainable
What is difference between the two? Which one is the preferred investment?
If neither are preferred - can you suggest an alternative?
Thanks