Q: What investments would yield income with some safety(conservative)?
Was thinking of ZWH or XTR?
Was thinking of ZWH or XTR?
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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.
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iShares Canadian Financial Monthly Income ETF (FIE)
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iShares S&P/TSX Composite High Dividend Index ETF (XEI)
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iShares Diversified Monthly Income ETF (XTR)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
Q: Hi,
This is follow up to James' question about living off the dividends from these ETFs.
ETFs = XTR,FIE,XEI,VDY,XHY
Suppose I convert my portfolio(s) over to equal weights of these ETFs and start living off the distributions ~ 5.5% yield. I'm ok with the tax situation. I can account for inflation.
What other risks am I taking? When we see another 2001 or 2008 what is the possible impact to the ETF values & the distributions?
I'm not looking for a guess (and certainly not a promise) as to what will happen in the future. I'm looking for a list of additional things that I need to consider about this strategy for my own risk management before pulling the plug on my current working life. A handful of "what-ifs" to consider would be great.
Thanks,
Gord
This is follow up to James' question about living off the dividends from these ETFs.
ETFs = XTR,FIE,XEI,VDY,XHY
Suppose I convert my portfolio(s) over to equal weights of these ETFs and start living off the distributions ~ 5.5% yield. I'm ok with the tax situation. I can account for inflation.
What other risks am I taking? When we see another 2001 or 2008 what is the possible impact to the ETF values & the distributions?
I'm not looking for a guess (and certainly not a promise) as to what will happen in the future. I'm looking for a list of additional things that I need to consider about this strategy for my own risk management before pulling the plug on my current working life. A handful of "what-ifs" to consider would be great.
Thanks,
Gord
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BMO Covered Call Utilities ETF (ZWU)
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iShares Diversified Monthly Income ETF (XTR)
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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
Q: Because of my age and possible future need for income, amount and security, I am pondering the addition of the following ETF’s. I am indicating the present and after purchase weighting in my portfolio. ZWU ( 3% - 5%), XHY (1% - 3%), XTR (0% - 5%). My portfolio is reasonably well
diversified with about 95% blue chip (28) common shares. Can you please comment on the appropriateness of my proposed purchases, given your limited knowledge of my portfolio.
The composition of XTR i shares includes other I share ETF’s so if I were to purchase this security I would be effectively duplicating management fees and further increase my exposure to XHY, which is held in XTR.
Thank you for considering this questions
diversified with about 95% blue chip (28) common shares. Can you please comment on the appropriateness of my proposed purchases, given your limited knowledge of my portfolio.
The composition of XTR i shares includes other I share ETF’s so if I were to purchase this security I would be effectively duplicating management fees and further increase my exposure to XHY, which is held in XTR.
Thank you for considering this questions