Investment Q&A

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.

Q: If a person was looking for income only with a lesser amount of capital gains what are your thoughts on these candidates for 20 % of an overall portfolio ?

Q: Hi I have this etf in my account . Should i sell some and buy stocks or add some i am looking for dividend income.

Thank you

Q: Hello 5i,
I am a 75 year old value investor for dividends and some growth with a balanced mix of ETF's and individual stocks. I hold ENB, FTS, TRP, BCE. I see that ZWU is at an attractive price point with 7% yield. As it holds others that I do not have would this just be a duplication of what I have and leave it as not needed. or go for the value and dividend?
thank you
Stanley

Q: Looking to establish a portfolio of higher yield equities. What are your thoughts on the above ETFs as part of the portfolio and which would be a preference if choosing only one? Have just started building recently with 1/2 positions in each of POW, PPL and BCE so far. Expect to hold 7-10 positions in total.
Thanks

Q: Hi Peter
Is ZWU a good buy for an income oriented investor? Would you buy it at the current level?

Thanks

Q: Hello, I own above ETF's, and with rising bond yields, is it time to bail out ? If so, which one(s) to let go and which one(s) to keep.
Thanks
Carlo

Q: Are utility stocks and other dividend names under greater pressure with a rising 10 yr yield? If so, could you please explain why? Thanks.

Q: Hi 5i,
This may well be 4 questions, so please deduct points accordingly.
Portfolio Analytics indicates that I'm underweight in Communications Services, Consumer Defensive, Industrials and Consumer Cyclical, and I'd like to top up these sectors.
I try to be a balanced investor and like income, but I don't mind taking on more risk and little or no income on something with a solid premise. Especially right now I'm looking for companies that are poised to benefit from the return to (more or less) normal life that 2021 might bring.
My present Communications Services weight all comes from the following ETFs - TXF, ZDI, DISC and ZWU. Can you provide a few Canadian equities to look at in this sector at this time, other than the big four?
My present Consumer Defensive weight comes mostly from NWC, with a smidgeon from ETFs like ZFI and DISC. Are there two or three Canadian equities in this sector you'd currently recommend looking at?
My present Industrials weight is in FTG (which I'd be happy to sell unless you think it has the potential for recovery in the coming year), QST and XBC. Are there another two or three Canadian names you presently favor in this sector?
And finally, my only Consumer Cyclical other than whatever might be in the listed ETFs is NFI (although I'd have thought it would properly be classified as an Industrial). Again, could you recommend two or three Canadian equity names that might qualify as viable Consumer Cyclical holdings going forward?
Thanks a lot and Happy New Year!
Peter

Q: Thanks for the quick answer. Just a follow up to my "renewables" question. My 3rd question was meant to compare ZUT versus the covered call equivalent ZWU (not ZWC, which I also own). Rereading your answer a few times makes me believe that you thought the intended comparison was between ZUT vs ZWC...not so.

It appears to me that the total return for ZUT handily beats that of ZWU. My question related to where we are in the market cycle. My understanding is the covered call overlay system works best in a slightly rising, flat or slightly falling market...I think. Otherwise the CC ETF will underperform in a bull market. So, based on where you believe we are in the market cycle, which ETF is best...ZUT or ZWU. This ETF is intended to improve my asset allocation by increasing my Utilities and Energy exposure. Again, I already own ZWC. Based on where I think we are, I am leaning towards ZUT for total return. Your thoughts?

Thanks for the clarification...Steve