Investment Q&A

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

Q: hi guys are these good to buy and hold do you think there dividends are safe

Q: A few weeks ago you said that close to 40 % of the dividend paid by ZWU in2019 was actually return of equity. Would you know if this would be more or less true about most years?
Also, you don't seem to have a very high opinion of ZWU. Why then do you include it in your Model ETF Portfolio?
Thank you
jerry

Q: For a balanced portfolio with the next 3-5 years in mind, what are your suggested weightings in preferreds, utilities and high yield bonds. Given low interest rates preferreds in particular seem like a place investors will go to seek higher yields with some opportunity for growth.

Q: Hello why is ZWU still down nearly 20% from peak, but XUT is only down about 5%? Does it have something to do with the large yield on ZWU?

Q: Just looking for some info on the cost structure of this product
Management fee-.65
MER -.71 So am i correct by adding these 2 togeather to 1.36 is what it cost me and if so when and how is this paid or taken from my account....thanks

Q: Would you please comment on the Canadian uttilities as a sustaining dividend provider and in particular ZWU and whether the covered call feature has consistently provided a history high dividend yield --- currently at 8+percent.
George Murphy

Q: I have a TFSA with about $33K that I plan to give to my daughter for graduate school in about 2 years. ZWU looks like a good investment, with YTD return of -14.25% and yield of about 7.95%. Would appreciate your comments on ZWU and any other suggestions you could provide.
Thanks!