Q: what do you think of a switch from enb.pr.f to zwc for same div but more growth ?thanks Phil
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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.
Q: Lots of comments around that there may not be a lot of upside to the Telcos. And we know that covererd call etfs`s also have built-in limited upside. Any thoughts on swapping Telus for a covered call etf for income?
Q: This is more of a response to Stephen regarding his question about Zwc-I am also retired and purchased Zwc in the fall of 2017. I purchased the units around 19.50 when the tsx was around 16,500. Currently the units are close to 17.00 however the tsx is close to 21,000. My dividend paid since 2017 far out way the capital loss currently however I am speculating that over time the market will continue to rise as it has over the past many decades. Eventually I expect to get my capital back and perhaps a little more-no guarantees so I will keep my fingers crossed
Q: Retired, dividend-income investor. I bought a 4% position in ZWC in 2017 and it has just been "ok". I'm probably going to give it a few more quarters to see if/how it recovers from it's current price. Over the time I have owned it, I have averaged around 4%. The dividend I get is directed to other investment opportunities.
If I decide to flush ZWC, I am interested in purchasing a USA-focused ETF that pays a reasonable dividend and is eligible for the Cdn dividend tax credit. It should cover the various sectors of their economy and include the magnificent 7. I am more of a value investor and hesitate to buy something that has already had a big run-up. However, there is the theory that there is still room for the Mag-7 to run.
Do you have a few ETFs that I could research...thanks...Steve
If I decide to flush ZWC, I am interested in purchasing a USA-focused ETF that pays a reasonable dividend and is eligible for the Cdn dividend tax credit. It should cover the various sectors of their economy and include the magnificent 7. I am more of a value investor and hesitate to buy something that has already had a big run-up. However, there is the theory that there is still room for the Mag-7 to run.
Do you have a few ETFs that I could research...thanks...Steve
- iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
- Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Global X Canadian High Dividend Index Corporate Class ETF (HXH)
- Fidelity Canadian High Dividend ETF (FCCD)
Q: “Horizons ETFs Management (Canada) Inc. said that since no distributions are expected to be paid, the ETF will be more tax-efficient for investors who hold it in non-registered accounts.”
Can you please recommend me a few Canadian and US listed alternatives that I may want to consider?
Can you please recommend me a few Canadian and US listed alternatives that I may want to consider?
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- Canoe EIT Income Fund (EIT.UN)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Evolve S&P/TSX 60 Enhanced Yield Fund (ETSX)
- Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
- Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX)
Q: I would like to put about 50% of my portfolio into safe, higher yielding (10%+) Canadian focused ETF's or Mutual Funds, and adjust my holdings as needed going forward based on sector performance. I feel that both Banks & Utilities are nearing lows and that a further correction may occur in the general market due to tax loss selling or possibly one more rate hike. Do you feel that the mix of ETF's listed provide a safe way to invest with the goals indicated? What % for each, as part of the 50%, would you recommend as a holding, and how would they be treated for tax purposes? Thanks for the great service and please use as many credits as necessary.
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Evolve Global Healthcare Enhanced Yield Fund (LIFE)
Q: Would like to get your view on ETFs that use covered call options to enhance returns. As interest rates plateau and eventually begin to fall is there anything 'in general' that we can expect from these ETFs? Will the share price increase, like bonds, to bring yields more inline with expectations or is the share price more influenced by the underlying share prices of the stocks held in the ETFs?
- BMO Covered Call Canadian Banks ETF (ZWB)
- CI U.S. & Canada Lifeco Covered Call ETF (FLI)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
Q: I am at a point in my life where I am looking to my investments more for income than growth. My question concerns how you might incorporate a strategy that are includes "dividend" stocks that pay a low yield. eg HD, TRI, CN etc. Assuming you wish to obtain an overall yield of 4% - 5% from your portfolio (in order to satisfy RRIF requirements while maintaining some growth) I would think it best not to load up only on high yield stocks and continue maintain a balanced portfolio. To achieve the necessary income should one invest in low dividend payers and sell a portion of the low yield dividend payers annually in order to achieve the be needed income; go a bit overweight on high yield equities in order to juice the income; or just forget about balancing the portfolio?
Any thought you have would be greatly welcomed.
Appreciate the insight.
Paul F.
Any thought you have would be greatly welcomed.
Appreciate the insight.
Paul F.
Q: Peter; If I own various oil and gas/ tech stocks does it make sense to buy a covered call ETF, i.e., the BMO ZWT and the Horizon ENCC , to hedge ? Thanks.
Rod.
Rod.
- BMO Covered Call Utilities ETF (ZWU)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- QRAFT AI-Enhanced U.S. High Dividend ETF (HDIV)
Q: I'm going to set up a TFSA for my daughter she has 41K in available room,for a 5 year duration with the hopes of cashing it in for a down payment on a house.My strategy is to put 10K in 4 funds by setting them up as DRIPs not worried about price appreciation(although that would be great)looking to get 6-10 % on dividends,would like to stay primarily Canadian could you comment on the 3 ETFs i am considering and also could you recommend 3 different options of ETFs that could work ....Thank you for your great service
- BMO Covered Call Canadian Banks ETF (ZWB)
- iShares S&P/TSX Composite High Dividend Index ETF (XEI)
- Vanguard FTSE Canadian High Dividend Yield Index ETF (VDY)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- JPMorgan Equity Premium Income ETF (JEPI)
Q: Hi, I'm slowly transitioning from a growth portfolio to a dividend portfolio for retirement, starting with positions in JEPI and JEPQ. Can you suggest a couple of US and a couple of Canadian ETFs with high dividends (+6%) that would complement these two? Thanks!
- BMO US High Dividend Covered Call ETF (ZWH)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Harvest Canadian Equity Income Leaders ETF (HLIF)
Q: Hello, just wanted your updated opinion on HLIF to generate income. I would also appreciate another choice of covered call ETF with more history and with which you would be comfortable for maximum income without undue risk. Thanks.
- BMO US High Dividend Covered Call ETF (ZWH)
- CI Tech Giants Covered Call ETF (TXF)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
Q: TXF Vs EIT.UN. Which would you prefer for overall total performance ( appreciation and dividend) over a holding period of 3-5 years. Or if any other preferences. Thanks
Q: I am interested in income and currently hold 3% of ZWU and 3% of ZWC in my RIF. I would like to bring one of them up to a 5% holding and am looking for your opinion on which one to add to and why. Thanks, James
- TC Energy Corporation (TRP)
- Fortis Inc. (FTS)
- Algonquin Power & Utilities Corp. (AQN)
- BMO Low Volatility Canadian Equity ETF (ZLB)
- iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Ninepoint Energy Fund (NNRG)
- Ninepoint Energy Income FUnd (NRGI)
Q: Retired, dividend-income investor. I hold AQN in my RRSP, bought it in 2011 at $5.60 (not a typo) and have trimmed it multiple times due to asset allocation. Not that it matters, but I am still up 15% over my ACB.
Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?
I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.
Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?
So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?
Thanks for your help....Steve
Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?
I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.
Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?
So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?
Thanks for your help....Steve
- BMO Covered Call Utilities ETF (ZWU)
- CI Energy Giants Covered Call ETF (NXF)
- Canoe EIT Income Fund (EIT.UN)
- Main Street Capital Corporation (MAIN)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Pacer Global Cash Cows Dividend ETF (GCOW)
- Oaktree Specialty Lending Corporation (OCSL)
- Owl Rock Capital Corporation (ORCC)
- Evolve Global Healthcare Enhanced Yield Fund (LIFE)
- JPMorgan Equity Premium Income ETF (JEPI)
Q: Looking at 3 very different asset classes that offer high yields and would appreciate your help in sorting which ones offer best risk/ reward.
1. Covered calls: NXF, ZWC, ZWU, LIFE, JEPI;
2. Credit - OCSL, ORCC, MAINMAIN
3. Yield - GCOW, EIT-UN.
Questions: 1. What is your comfort level on risk/reward for any or all;
2. Please choose which are investable with short commentary as to rationale and and target buy prices
1. Covered calls: NXF, ZWC, ZWU, LIFE, JEPI;
2. Credit - OCSL, ORCC, MAINMAIN
3. Yield - GCOW, EIT-UN.
Questions: 1. What is your comfort level on risk/reward for any or all;
2. Please choose which are investable with short commentary as to rationale and and target buy prices
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- BMO Covered Call US Banks ETF (ZWK)
Q: A portion of my portfolio is invested in the BMO Covered Call ETF's. In their fund prospectus, they indicate that a portion of your return is a return of capital. Is this a return of invested capital or is this the return of the premiums collected from writing the calls against the underlying securities?
- PPL Corporation (PPL)
- AT&T Inc. (T)
- Power Corporation of Canada Subordinate Voting Shares (POW)
- Canadian Western Bank (CWB)
- Capital Power Corporation (CPX)
- Alaris Equity Partners Income Trust (AD.UN)
- Russel Metals Inc. (RUS)
- Brookfield Infrastructure Partners L.P. (BIP.UN)
- Exchange Income Corporation (EIF)
- Pizza Pizza Royalty Corp. (PZA)
- BMO Canadian Dividend ETF (ZDV)
- Dream Industrial Real Estate Investment Trust (DIR.UN)
- Automotive Properties Real Estate Investment Trust (APR.UN)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Enbridge Inc (ENB)
- Fabrinet (FN)
- Fortis Inc. (FTS)
- Manulife Financial Corporation (MFC)
- Sun Life Financial Inc. (SLF)
- Spectrum Brands Holdings Inc. (SPB)
- Suncor Energy Inc. (SU)
- Toronto Dominion Bank (The) (TD)
- TC Energy Corporation (TRP)
- Royal Bank Of Canada (RY)
- Bank Nova Scotia Halifax Pfd 3 (BNS)
- BMO Covered Call US Banks ETF (ZWK)
Q: These are my current holdings and I am looking forward to 2023. They are held in relatively the same quantities in 5 different accounts, a RRIF, 2 TFSA's and 2 Non registered accounts. I am retired an enjoy the income. Do you see any issues with these holdings or have any suggestions looking forward. The only non dividend holding is AR.
Take any extra credits as necessary. Thank you in advance. Enjoy and appreciate 5i'S help. Happy New Year.
Take any extra credits as necessary. Thank you in advance. Enjoy and appreciate 5i'S help. Happy New Year.
- iShares Russell 2000 Growth ETF (IWO)
- iShares Core S&P/TSX Capped Composite Index ETF (XIC)
- Vanguard FTSE Developed All Cap ex North America Index ETF (VIU)
- Vanguard S&P 500 Index ETF (VFV)
- INVESCO QQQ Trust (QQQ)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- Global X S&P 500 Covered Call ETF (XYLD)
Q: Hi, can you suggest a few ETF'S and covered call ETF'S to put in a self directed RRIF, providing income and some growth. I know you're not keen on giving specific portfolio construction, IE, everyones circumstances are different, I would really appreciate just a few ideas for core holdings.
Thank's James
Thank's James
- BMO US High Dividend Covered Call ETF (ZWH)
- Vanguard U.S. Dividend Appreciation Index ETF (CAD-hedged) (VGH)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- JPMorgan Equity Premium Income ETF (JEPI)
Q: Hi, is there a cdn etf equivalent to jepi, schd and divo?