-
BMO Covered Call Utilities ETF (ZWU $11.00)
-
CI Tech Giants Covered Call ETF (TXF $23.21)
-
Canoe EIT Income Fund (EIT.UN $15.79)
-
Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX $13.16)
Q: Hello!
Now that I’ve reached the age of RRIF withdrawals, I’m looking more closely at income and therefore at covered-call ETFs.
I understand that these instruments don’t fully share in the upsides, but the income of ETFs like EIT, TXF and ZWU is pretty solid.
I’ve also been looking at UMAX its unbelievable 14% yield, but I also see that the unit price has declined quite dramatically over the last few years.
So questions are, how do you feel about these ETFs for income? And if you’re okay with them, which would you recommend?
Thanks for all your help
Michael
Now that I’ve reached the age of RRIF withdrawals, I’m looking more closely at income and therefore at covered-call ETFs.
I understand that these instruments don’t fully share in the upsides, but the income of ETFs like EIT, TXF and ZWU is pretty solid.
I’ve also been looking at UMAX its unbelievable 14% yield, but I also see that the unit price has declined quite dramatically over the last few years.
So questions are, how do you feel about these ETFs for income? And if you’re okay with them, which would you recommend?
Thanks for all your help
Michael
5i Research Answer:
We do not love closed-end funds, but EIT.UN has a five year annualied return of 21.47%, and it...
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU, TXF.