1) Are these a safe hold that should increase in value with general market appreciation over the years?
2) Would you believe the current dividend is sustainable?
3) Are there other options in the ETF world that you might recommend for a long term hold?
4) Again for a long term hold would you prefer something along the lines of buying equities directly, with something like holding one of your portfolios, knowing that he will not be paying much attention to these investments.
Thanks! Paul
XEQT has a 100% equity allocation, so does carry market risk. But, the longer a position is held, the more likely one can expect a positive return. Over 10 years, odds are near 100%. Over 20 years, basically as much of a guarantee as one can get without an official guarantee. Certainly we would expect XEQT to appreciate with the general market. VEQT is more or less the same fund and the same comments would apply. ETFs 'pass through' dividends, and with holding through proxy hundreds of securities we would not have any concerns on the distribution. A big recession where multiple companies cut dividends could of course impact it. #3 We would consider these solid, one-stop shop ETFs. #4 A portfolio of equities can boost returns (if stocks are chosen properly), lower fees (to zero) and can help with tax planning (selling losers for losses). But considering low fees (0.20%) and an investor who may not pay much attention, we would prefer the ETF route.