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BMO International Dividend ETF (ZDI)
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Purpose International Dividend Fund (PID)
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Evolve Global Healthcare Enhanced Yield Fund (LIFE)
Q: Thank-you for your great service. The improvements to the site are excellent.
My wife and I are value/income investors, currently focussed primarily on the Canadian Market. We had started our portfolio in early 2020 - and felt that the exchange rate was prohibitive to buy US stocks. Also, with the “Covid Crash” and trying to “learn the market” (more like drinking from a fire hose) we thought it best to focus on companies we knew (Country bias). We have done very well, in a very large part to the 5i community, and have built up a diversified portfolio of 36 holdings (including 2 ETF’s); paying six figures in dividends.
We are about a year from retirement and we have started to diversify more geographically and are looking primarily at ETF’s to achieve this. While the exchange rate is much better, the US now looks expensive to us, so we are looking to focus on the developed International markets. While ETF’s are lower risk, the broad array of options makes our heads spin. If this question is too long, please feel free to edit/omit the above paragraphs.
We have a few questions around ETF’s. Please deduct as necessary. We have read all the 5i Questions and viewed the “Fact Sheets” with the ETF’s mentioned below, as homework, and would appreciate your advice.
1. I like the idea of utilizing covered call EFT’s to help offset some of the lower yields (and potentially underperformance during a market turndown) in some of our growthier positions. For example we have a 1.5% position in LIFE (Evolve Global Healthcare CC Hedged), to help balance out SIS’s lower dividend. What percentage of a portfolio should be covered calls before it starts adversely impacting portfolio returns?
2. We also hold a 2.25% position in ZWE (BMO Europe High Dividend CC Hedged) and are looking to add either a 2.25% in PID (Purpose International Dividend) or ZDI (BMO International Dividend) which offer a decent dividend, and potentially more growth. PID currently pays a higher dividend, and we like that no one company has no more than a 2% weighting. Which of the two would you recommend, or are there other ETF’s you would suggest?
We have considered the impact to our sector weights with the above (as best we can) and will be upgrading to Portfolio Analytics to better allocate these. As we move to increase our weightings in ETF’s this will be extremely helpful.
Thank-you!
My wife and I are value/income investors, currently focussed primarily on the Canadian Market. We had started our portfolio in early 2020 - and felt that the exchange rate was prohibitive to buy US stocks. Also, with the “Covid Crash” and trying to “learn the market” (more like drinking from a fire hose) we thought it best to focus on companies we knew (Country bias). We have done very well, in a very large part to the 5i community, and have built up a diversified portfolio of 36 holdings (including 2 ETF’s); paying six figures in dividends.
We are about a year from retirement and we have started to diversify more geographically and are looking primarily at ETF’s to achieve this. While the exchange rate is much better, the US now looks expensive to us, so we are looking to focus on the developed International markets. While ETF’s are lower risk, the broad array of options makes our heads spin. If this question is too long, please feel free to edit/omit the above paragraphs.
We have a few questions around ETF’s. Please deduct as necessary. We have read all the 5i Questions and viewed the “Fact Sheets” with the ETF’s mentioned below, as homework, and would appreciate your advice.
1. I like the idea of utilizing covered call EFT’s to help offset some of the lower yields (and potentially underperformance during a market turndown) in some of our growthier positions. For example we have a 1.5% position in LIFE (Evolve Global Healthcare CC Hedged), to help balance out SIS’s lower dividend. What percentage of a portfolio should be covered calls before it starts adversely impacting portfolio returns?
2. We also hold a 2.25% position in ZWE (BMO Europe High Dividend CC Hedged) and are looking to add either a 2.25% in PID (Purpose International Dividend) or ZDI (BMO International Dividend) which offer a decent dividend, and potentially more growth. PID currently pays a higher dividend, and we like that no one company has no more than a 2% weighting. Which of the two would you recommend, or are there other ETF’s you would suggest?
We have considered the impact to our sector weights with the above (as best we can) and will be upgrading to Portfolio Analytics to better allocate these. As we move to increase our weightings in ETF’s this will be extremely helpful.
Thank-you!
