Q: Your thoughts about purchasing the above in my TFSA and/or RRIF accounts . Do you see any major downsides?
5i Research Answer:
Both the banking and utility sectors should start to do better as interest rates peak. Covered call funds offer higher income, with a give up of lower returns if the sectors rally. Banks are very cheap versus historical levels, but investors are worried about recession. Utilities have had a tough year but we think have good potential from current levels. We would be comfortable with these funds today for an income-oriented investor.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWB, ZWU.