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  5. TXF: Is this still worth holding? [CI Tech Giants Covered Call ETF]
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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Is this still worth holding? It is down like many type ETFs. CI Global Asset Mgt is to be purchased by Mubadala Capital. Not sure if everything will be "steady as she goes".
Asked by Stephen on May 01, 2025
5i Research Answer:

In asset manager takeovers, not much generally changes. The takeover was more likely due to the fact that CI was not getting a good valuation in the public market, and it created an opportunity for a long term strategic buyer. TXF is not likely to change. Its strategy is simply to buy the 25 largest tech companies on an equal weighting basis and sell covered calls.  It is not difficult to manage. It is down with the tech sector, but recent tech results have been better than expected. Lower interest rates could spark a rally. For longer term investors we would be fine keeping this if one wants tech exposure and enhanced income. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in TXF.