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iShares Canadian Financial Monthly Income ETF (FIE $8.85)
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CI Tech Giants Covered Call ETF (TXF $21.10)
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Canoe EIT Income Fund (EIT.UN $15.63)
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX $13.52)
Q: I am relooking at the Fixed Income portion of my portfolio. The bulk is bond funds, but it also includes a few GIC’s and a HISA. But what about Preferred Shares, EIT, FIE, TXF, and UMAX, all of which I hold STRICKLY for their distributions? I am currently grouping them in with my dividend stocks but maybe they should be included in Fixed Income? EIT and FIE have paid out the same distribution for ten plus years. Thanks.
5i Research Answer:
We would mostly classify EIT.UN, FIE, TXF, and UMAX as income funds or 'hybrid income'. Most have exposure to individual equities, with high yields coming from a mix of covered calls and Return of Capital (RoC). None of these are considered preferred shares or fixed income, but FIE has some exposure to preferred shares and fixed income (about 28% total exposure).
For grouping with fixed income, we would look for ETFs with capital stability and predictable income, and low correlation to equities.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in TXF.