Q: Hi
Presently own ZDI in our RRSP.
I am thinking of replacing ZDI with KKR & BRK.B.
KKR and BRK.B are bigger and are like an ETF without the fees.
Also in the long run I think KKR and BRK.B it will have better growth than ZDI .
We would be giving up a good dividend with ZDI go.
Thank you.
Mike
Presently own ZDI in our RRSP.
I am thinking of replacing ZDI with KKR & BRK.B.
KKR and BRK.B are bigger and are like an ETF without the fees.
Also in the long run I think KKR and BRK.B it will have better growth than ZDI .
We would be giving up a good dividend with ZDI go.
Thank you.
Mike
5i Research Answer:
We would not have real objections to this, as long as one understands that there will be more single company risk and less overall diversification than an ETF with 113 holdings. KKR and BRK are considered 'financials' and ZDI has 19% exposure to the financial sector. But if growth is the prime objective, we agree both companies are kind of like funds in and of themselves, and each likely has more upside potential, long term.