Investment Q&A

Q: In an answer to John you stated that you would expect ZWU " would likely retain its' share price better than UMAX " . Though UMAX hasn't been around long enough for a comparison I think one can speculate on what return might be expected as fifty percent of their portfolio are utility stocks with no calls written on them . So I would think the capital gain would be fifty percent of the utilities index. For example if the index returned 8% annually UMAX should return 4% which would reflect the percentage of the portfolio that is stocks { half the portfolio }. I would think that might be a good educated guess ..... ZWU on the other hand has been around for a while. So my question is has ZWU historically beaten fifty percent of the annual return of the utilities index ? And what has their historical annual percentage been compared to the utilities index ? ......
What I am shooting for here is a way to calculate whether the difference between ZWU's return and the utilities index return is enough compensate for a 5.6% lag in yield between it and UMAX ...... Thanks Garth .....

Q: If you had $20,000 to invest today for and Income with some growth investor in an otherwise well diversified portfolio, what would you pick or just add to?

Q: Somewhat similar etf's with significantly different yields.

umax at 13.7% and zmu at 8.1%

would umax not be the obvious choice for an income investor?

thankyou

Q: ZWU recently dropped its distribution from $.08 to $.07 per month. What makes an etf like this cut its payout and do you think it's vulnerable to more cuts?

Q: Can you compare these please. umax distribution is much higher and is not leveraged, fewer holdings but includes railroads

Is zwu leveraged, and what does "leaverage" mean

Can't find umax mer

Thank you as always

Q: I am looking to park some cash in a cash account for 1 to 2 years. I am looking for income that is relatively safe and not concerned with minimized capital gains from capital gains. Your thoughts please. Thank you. If you have other suggestions for consideration,please advise.

Q: Hi,

Do you think now is a good entry point for a long term hold on ZBU - or in your opinion it would be better to wait until rates start to decline?

Thanks as always for your advice.

Q: I'm going to set up a TFSA for my daughter she has 41K in available room,for a 5 year duration with the hopes of cashing it in for a down payment on a house.My strategy is to put 10K in 4 funds by setting them up as DRIPs not worried about price appreciation(although that would be great)looking to get 6-10 % on dividends,would like to stay primarily Canadian could you comment on the 3 ETFs i am considering and also could you recommend 3 different options of ETFs that could work ....Thank you for your great service

Q: I have a bit of money to invest in dividend paying stocks for a long term hold . What do you think of the 5, I have listed or can you suggest anything better ? Thanks.

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 ?