Q: Is this ETF too volatile and risky for a conservative investor? Terrific yield.
5i Research Answer:
We posted comments on this fund yesterday; The oil and gas sector is inherently volatile/cyclical. The covered call aspect helps this volatility a bit, but in a big sector decline the ETF is still probably going to take a decent size hit. So it depends on the degree of conservativeness. For a conservative investor we would be OK with a small position for sector exposure but would not want a big weighting.