Investment Q&A

Q: Good morning,
May I have 5is opinion (pros and cons) regarding the following please.
I have just rolled my RSP into a RIF and am thinking of selling AQN and SPB and consolidating into ZWU. My thinking is that this will in a simpler more stable way of provide equal to better performance (income with some growth) over time. Do my thoughts have merit? I also hold BEP.UN as well as FTS.

Thank you for your thoughts and opinion.

Q: HI 5i ,
I ama DYI retired investor, looking to add a few covered call ETF's to my TFSA, do you have a favorite what are your thoughts in this realm for added dividend income?
Thanks P

Q: Hello 5i team,
I'm thinking of increasing my position in ZWU in my TFSA. It pays a big distribution of 8.39% at the moment, and is trading near its 5 and 10 year lows. As utilities have been beat down by rising rates over the past year, would you expect a recovery in the unit price as central banks reach their "terminal rates" and look towards reducing rates in 2024? My understanding is that calls are not written on all of the fund's holdings, leading me to think there is some upside in the unit price if/when utilities recover, in addition to collecting an outsized yield. Is my thesis correct?
Thank you!

Q: I am interested in income and currently hold 3% of ZWU and 3% of ZWC in my RIF. I would like to bring one of them up to a 5% holding and am looking for your opinion on which one to add to and why. Thanks, James

Q: I am thinking of picking up ZWU and ZWB for income at this time. Your thoughts please.
Thank you.
Martin

Q: When is Ex-Dividend Date for ZWU (BMO Covered Utilities)? Would the investor get a dividend if the ex-dividend date is today and ZWU is purchased today but the settlement date is March 16? Thank you

Q: Looking at 3 very different asset classes that offer high yields and would appreciate your help in sorting which ones offer best risk/ reward.
1. Covered calls: NXF, ZWC, ZWU, LIFE, JEPI;
2. Credit - OCSL, ORCC, MAINMAIN
3. Yield - GCOW, EIT-UN.
Questions: 1. What is your comfort level on risk/reward for any or all;
2. Please choose which are investable with short commentary as to rationale and and target buy prices

Q: Hi

Is it time to lighten up on the following and look at growth stock..

In our RRSP we have

LIFE at 5% of the RRSP (still not underwater)
XYLD at 9% of the RRSP
ZWU at 5% of the RRSP

Like the dividend but two holdings are are dropping in valve.

Thank you

Mike

Q: Interested in your thoughts on HUTS. Could you please compare it to ZWU. Which of the two would you prefer, and why?

Thanks,
Chuck

Q: Hi

In my RRSP account I am down 10% on ZWU.

Based on interest rates and other factors would AD.UN be the better of the two to own?

If you have any other suggestions please feel free to mention.

Thank you

Mike

Q: I notice that utility ETF are in the low range of 52 weeks.Considering interest rates and economic context ,is it a good time now to invest in utility ETF (or even in utility covered call ETF in order to limit the present volatility ) ? any ETF suggestion ?

Q: I am looking for ETFs that trade on the TSX with a yield of at least 4-5%. From the income portfolio, I see CPD (preferreds) / CVD (convertible) / XHY (US HY) / ZRE (REITs), and I am also aware of ZWU (Utilities) / ZWB (Banks).

Are there any others that don't have much overlap with the above that you would recommend?

Q: In reference to Paul's question yesterday. That ZWU from 2017 to 2021 of that nice dividend 1/2 to 1/3 was a return of my own capital, Considering that, I'm surprised that 5I has recommended ZWU. What I thought was a very nice dividend is not. Now I'm wondering how many other covered call stocks are doing the same? The underlying stocks don't give a return of capital, right. Next I'm going to find out there is no Santa.

Q: hello 5i:
can you tell me how much Return of Capital has been for ZWU dividends over the last 5 years?
thanks
Paul L

Q: A portion of my portfolio is invested in the BMO Covered Call ETF's. In their fund prospectus, they indicate that a portion of your return is a return of capital. Is this a return of invested capital or is this the return of the premiums collected from writing the calls against the underlying securities?

Q: I need to add income equities to the TFSA as the income target is underwater. With this, I'm pondering adding BMO Covered Call Canadian Banks ETF(ZWB-T) to the TFSA for extra income, rather than say ENB that I would prefer to hold in a trading account and also rather than hold a small capitalization stock like AW.UN. What do you say about this option, ZWB for a mate over the age of 71?
If you are aligned with this approach, are there other Covered Call ETFs that you would suggest from my consideration?
Many thanks for the hints!!!......Tom

Q: Hello, I'm recently retired. I am seeking income generating vehicles for my various, registered plans (RRSP, LIRA, TFSA) to invest in. I'm considering an investment in ZWU. I'm wondering if there might be a similar, utilities based, covered call, ETF available for the American market?

Lastly, if any of these ETFs might also be available without the covered call overlay and if you believe that those versions of the ETFs might provide better, mid-term probability of a greater Total Return; I'd be interested in your opinion, as well.

Thank you!

Q: Hello 5i
In one of the recent questions it was said that you do not like covered call etf’s. I didn’t know that was the case. Maybe it isn’t, even i don’t know. I have concentrated my covered calls on American companies that i own. Also many uncovered puts. I have concentrated on the US because the premiums are much higher than on Canadian stocks. I have quite a few Canadian stocks, however. And i hate to see them languishing and unproductive. I have therefore been thinking of a way to make some money on them. The premiums are so low that it doesn’t seem to be worth the effort. But, covered call etf’s would be easier. I don’t know much about them, however. I wonder whether you might provide some information and some pros and cons. Whether you like the idea or not.
Thanks for the excellent service.

Q: Could you please recommend at least three Canadian products (stocks, etfs, bonds, whatever) that have an annual yield of at least 6%, but are ‘lower risk’. If you could list them in order of least risky to most that would be greatly appreciated. Thank you.

Q: I have the above ETF,s in my TFSA in roughly equal weights along with a number of stocks. Is there sugnifcat any over lap here? Where would add first or all equaly? I know your not a fan of covered call ETSs. Any suggested changes or additions?