Q: Could I have your opinion on RING, as a means of holding some telcos but with a diversified approach. My main objective is dividend income in what I hope would be a somewhat stable industry (overall at least) in the event of a correction. Does RING use any leverage/options? If you prefer an individual CDN company, which would it be and why.
Thank-you
Thank-you
5i Research Answer:
RING does not use leverage or options. It essentially owns just three companies: RCI.B, T and BCE in near-equal allocations. With fees of only 0.04% we think it is fine for those who want general sector exposure. By design it will have less risk than single companies and with stability as a goal we would prefer it over owning one.