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BMO Equal Weight Utilities Index ETF (ZUT $25.44)
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iShares S&P/TSX Capped Materials Index ETF (XMA $39.97)
Q: hello 5i
your analytics say that i need to increase my holdings in basic materials and the utilities sectors. I have avoided these in the past because I wanted to avoid dividends, favouring capital gains instead. but i am wondering whether i should top up a bit here and how to go about it.
can you advise me on whether i would be wiser to buy a handful of individual stocks rather than an etf for conservative| sectors like this/ if so, how many stocks would i need and can you suggest a few of the best
thanks
your analytics say that i need to increase my holdings in basic materials and the utilities sectors. I have avoided these in the past because I wanted to avoid dividends, favouring capital gains instead. but i am wondering whether i should top up a bit here and how to go about it.
can you advise me on whether i would be wiser to buy a handful of individual stocks rather than an etf for conservative| sectors like this/ if so, how many stocks would i need and can you suggest a few of the best
thanks
5i Research Answer:
Generally, for 'portfolio sector decisions' such as this we would start with an ETF. If adding stock to two sector one might add eight more stocks, which can be cumbersome to manage if a bunch of stocks are already held. For materials, we would suggest XMA. Its yield is only 0.32% which meets a goal as outlined in the question. For utilties we would suggest ZUT. It does of course have a high yield (3.26%). If stocks are preferred, we would suggest: AEM, LUN, FNV, NTR, FTS, H, BEPC, EMA