Investment Q&A

Q: Happy New Year 5i and thanks for being there!
I just transferred TDB171 for $6000 from a non registered investment into my self directed TFSA. Thereby gaining 1.7% in MER fees.
TDB171 is about 50% income and 50% equity.
My thought is to redeem these funds and purchase some dividend DRIP eligible stocks.
Looking at purchasing some income and potential growth stocks.
H, ZUT, and ZWB come to mind because their dividends are currently north of 4% and would allow a DRIP return. With the anticipation of the market rising over the next 3 years and a 3-5 year investment period would you see these as safe moves with a reasonable chance of gain? Any other suggestions in any sectors would be appreciated along with your comments which are also desired and welcome.
John

Q: I am looking for a sanity check. I am a retired income investor so I like covered calls like BMO's ZW series. However I believe the market is at or near a bottom so owning covered calls ETFs is significantly less appealing than owning the underlying stocks, especially since I can claim some capital losses. So, for example, yesterday I sold ZWB and bought RY. Am I making sense? I do realize I am a bit less diversified and I realize I would need to buy a few companies to replace say ZWC.
Thanks
don

Q: With the tide running out and lowering almost all "boats", the yields on the examples listed above are becoming compelling for a retired, income oriented investor.

Part of the thought process here is that inflation at least at this point appears to be muted. The yields on the above range from 4.2% to 6.8%. I see these as income producers with a good risk return profile given the size of the share price drops.

1. Do you agree with my reasoning?
2. Would these types of ETF's make sense?

Thanks for your help here.

Q: Folks can you recommend one or a few ETFs that trade in US dollars that would compare with the ETFs listed. I want to put some US cash into lower beta equities and strategies and am thinking that the ETF fees may be worthwhile to gain the covered call approach and enhanced income that results at the additional cost of sacrificing upside in rising markets. Also any comments on this intended approach for an equity investor who is transitioning from a balanced to an income tilt is appreciated - all the best.

Q: Hello,
How effectively can ZWC replace our ZWB and ZWU holdings?

Thanks for your efficient service and re assuring advice.
regards

Q: What are your views on these ETFs? Would this be a good time to buy these ETFs? Is one safer than the other in a broad market downturn?

Q: Banks-increase in interest rates, no increase in savings rates, spread widening.
Insurance Co’s-increase in yield on long term bonds,thus spreads widening.
What is your opinion on owning the above securities. I currently own all except FLI. Thinking of buyingFLI to diversify into insurance Co’s. Thank you for your help

Q: Should I just rut all my money in these Bank ETFs and hibernate for the rest of the year. 3 more rate hikes by the FED should be good for US banks and also Canadian Banks as spreads widen ? Any others you like ? RAK

Q: As a retired couple looking for div. Growth, not to happy with 5% weight in zgi in our rrif. Could u please give a few better options.

Q: I am looking for income and was wondering what the risks are in covered call ETFs. I am looking at ZWB and ZWU. Would they fare better in a market correction than pure ultility or bank stock ETFs?

Q: I am an income investor seeking capital preservation over capital appreciation. I am thinking of purchasing some or all of these ETFs. Do they meet my requirements? How would a downward market correction affect these ETFs?
Thanks for your assistance

Q: My 29 year old son has $40,000 in a tfsa all in cash. So far, he has little interest in investing. I'm thinking as a possible way to get him interested (and to at least get some kind of return) of suggesting to him that he put $35,000 into a Cdn equity etf and $5,000 into a growth stock. (I would really like for him to just put it into say 4 growth stocks but if the whole thing tanks it will be "dad's fault".) He also has his employer DC pension plan (2 or 3 years in) in which he's invested in life-cycle funds.

Could you recommend an etf and stock for his tfsa? Or would you suggest some other completely or slightly different route to go with his tfsa? Thank you.

Q: What would be your recommended ETF's for the following sectors that would provide safety and a regular monthly income . Financial, Consumer, Utilities ,, Energy, and Healthcare. I have noticed that you generally prefer for retired conservative investors like me to follow more the income portfolio.
Your comments and recommendations are appreciated. Thanks.

Q: I am a retired non-resident and living on dividend income. My portfolio is a collection on higher yielding dividend stocks such as TD, BCE, FTS, AX.UN, ENB etc. (80% of portfolio focused on income)
I also have some lower yielding but higher growth stocks such as SIS, GSY, CCL.B, PBH, WSP. (20% of portfolio focused on growth)
To offset the lower yield of my growth stocks, I am looking into covered call ETFs such as ZWU (yield=6.6%) to bump up my income. I am not concerned with capital appreciation with the covered calls, only safety of dividend. Is a covered call such as ZWU for utilities as safe as it appears for dividend income? Are there any additional risks to be aware of holding a covered call such as ZWU vs the individual holdings within its portfolio?
Are covered calls the safest strategy to generate a 6-7% yield in a portfolio? Any other recommendations for higher yield (such as CEFs, BDCs)?
I am considering investing 10-15% of the income generating portion of my portfolio into higher yielding investments.
What 3 funds/stocks would you recommend I invest in to bump up the yield and thus offset the lower yield of my growth stocks?

Q: If I was to invest 25K, I would receive approx $105/Mn dividend but the cost would be .72% or $180/Mn. Are my calculations correct and if they are, why would I invest in something that costs me more than I'm paid?

Q: I am a fan of covered calls. I am retired and like the income, tax treatment and downside protection. In addition I like the diversity an ETF brings.
I hold all the above but am looking for more diversity. Are there equivalent US offerings? Does BMO have competing products that are more diverse?
Thanks

Q: You recently answered a question on these... would the distribution be income or dividends? Would any be okay in a tfsa or better in an rrsp or non-registered?

Q: Do you have a preference between these funds as a income generator and can you rank them from best to worst? Thank you!

Q: What ETF(s) might you consider best choice(s) for dependable tax efficient income with no concern for capital appreciation whatsoever but capital preservation being very important in both CAD and USD please? Thanks.

Q: do you think this is a good time to buy a bank stock or the ETF. for a long term hold? could you list your top 3 Cdn banks? thanks Jack