Do you see this as a good strategy to get a higher return with relatively low risk to the erosion of my investment value, given the long time frame?
Also, what would be an acceptable price to purchase ZWU?
It is a yes and no answer. For an investor seeking income, we would be comfortable with ZWU. Generally, utilities are quite stable in most market environments. The exception is when interest rates spike higher (as in 2022). Losses can still occur in the sector. If an investor wants equity exposure, then utilities as a sector is typically one of the safest, along with consumer staples and health care. BUT..............in no way would we equate such an investment with a fully-guaranteed GIC. There is a big difference, and investors need to understand this. A GIC is never going to decline, and a ETF, even in utilities, can, sometimes sharply. So while we cannot get personal, looking at a 5 to 10 year time frame we would still be quite comfortable with ZWU overall. $10.85 we think would work as a price.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.