Investment Q&A

Q: I have had the impression that covered calls were a riskier type of investment but when I look at the beta, std dev, alpha, sharpe ratio, etc I don't see much difference between the two ETFs listed. Are they both considered about equal?

Q: I have the above in my TFSA along with 5 individual stocks currently.
Any gapes or duplication in the ETFs, Should I just add to each equally with any new contributions to an approx 10-12 % weighting for all and thereafter considerate on individual stocks for more growth torque.

Q: Could I get your favourite enhanced income etfs for a registered and non registered account

Q: Hello,

I own the whole list (weights 1% to 2%) thinking I was being diversified but maybe went too far.

1) I am on the right track to reduce to about 3 names?
2) Which names optimise income?
3) Alternative names that I might have missed?

Many thanks!

Q: Hi, looking to start one or two Canadian based etf. Retired, no investment out of Canada. I think I should have some. Would like monthly income, 4%+ ,moderate risk, some growth if possible.
I think Cyh is the only one with a little growth?
Could you suggest two etf’s you prefer, or suggest two from above you might have confidence in.
Thanks

Q: HI!
In an income seeking portfolio, if one has a portfolio that is overweight financials, do you think it makes sense in the current environment to lighten up and add to pipelines and utilities due to the geopolitical events and risk of recession down the road. Thought in rate rising environment assets that benefit from rising rates were in favour but it seems telcos, utilities, and pipelines are moving more now. Obviously with price of oil, increase in pipelines is understandable and clearly yield curve is playing a role. What are your thoughts on whether increasing rates will eventually hurt utilities/pipelines. Thank you!

Q: How do you feel about ZWU today? Or would you prefer to own a pipeline company like ENB? Seems the number of anticipated rate increases has fallen in recent days given Russia's war on Ukraine. Looking for price stability and yield. Great service, thanks!

Q: Is there any tax implications on buying covered call ETFs like ZWU, ZWB in TFSA?

Q: I hold 13% of my non-registered account in energy and utilities, spread across the following stocks, with a focus on long-term income.

Would you suggest any consolidations or removal of any of these positions?

AQN, 9.70% of total, 3% gain
CU, 4.78% of total, 3% gain
ENB, 21.43% of total, 31% gain
EPD, 7.50% of total, 2% gain
FTS, 8.14% of total, 1% gain
KMI, 7.54% of total, 6% gain
PXT, 7.19% of total, 15% gain
SPB, 8.48% of total, 3% loss
TPZ, 4.19% of total, 8% gain
TRP, 4.86% of total, 11% gain
WMB, 4.63% of total, 10% gain
ZWU, 11.55% of total, flat

Thanks as always for your excellent work! Aaron

Q: My wife has $75,000 to invest in her TFSA, in which she is also holding 100 shares of TD Bank along with 100 shares of TD in an RSP. She is retiring in a month has a defined pension plan, CPP, OAS. But she is still looking for dividend income either monthly or quarterly to supplement her income.
We are looking at going with "Beating the TSX Portfolio 2022" but also looking at ZWU and ZWC which look like they could bring in more income but higher fees. What are your thoughts? Thank you.
Brian

Q: What are your thoughts on covered call ETFs? And if you like them, which would be your favourite(s)?

Thanks guys,

Dave

Q: Can I have your thoughts about these stocks and ETF’s for someone with a 3 to 5 year timeframe and who is in their mid 30’s?

Thanks

Q: are any of these worth buying ?

Q: Hi,

What are your thoughts about my current portfolio? I am also looking at adding ZRE.TO and ZWC.TO.

Appreciate your help.

Q: Hi,
I have been considering these covered call ETFs for income as a long term hold. I am recently retired. On researching them however on their BMO fact sheets I see a MER of .71% and total expense of .92%. As well in the holdings on the fact sheets I see only about 0.1% of their holdings are classed as covered calls. Seems like a lot to pay in total expenses for only 0.1% of holdings in covered calls. A pure bank ETF or utilities ETF or would be much cheaper. Am I missing something?

Q: I own ZWU in an RRSP account. Today's market price is basically the price I paid to buy it. I own it for the healthy monthly dividend it pays (7% annually). With interest rates about to increase this spring and at least 3 interest rate hikes expected this year, how would those rate hikes affect the price of ZWU? Would I be better off selling ZWU and then investing the proceeds in ZWC which is more diversified in its holdings? My investment time horizon is 10+ years. Thank you.

Q: I'm replacing ZWU and ZWC since I would prefer to hold stocks at this point. What 5+ stocks would you recommend to replace ZWU and ZWC each. Thank you.

Q: Hello 5i,
I’m helping a conservative investor with a tfsa. Vbal makes up half of the account.
In trying to boost monthly income I’ve come up with the above etfs.
Based on 2020 distributions,how would each of the above etfs be taxed if held in a tfsa?
Also, can you please verify the sector exposure of zup (similar to pff - usd) I thought the financial % was underweight.

Q: Hello, are the distributions from ZWU taxed as a dividend or income? thank you.

Q: Where do you see the greatest value in the market these days? Cdn Banks always seem like a go to when in doubt, ZWU also seems reasonably priced. Any thoughts on ETF's or specific companies that are positioned well? Thanks as usual.