Investment Q&A

• Enbridge Inc. (ENB $66.58)
  • $66.58 P/E (TTM): 25.72X Cap: $145.22B
  • View ENB Profile
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  • View Reports on ENB
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: What are the advantages and disadvantages in buying ZWU versus ENB for long term hold with both income and capital appreciation in mind

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Read Answer Asked by ANDY on May 22, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Hi 5i,

Could I get your thoughts on ZWU.
Would it be a good time to pick some up?

Thanks

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Read Answer Asked by Stephen on May 10, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• iShares S&P/TSX Capped Utilities Index ETF (XUT $31.98)
  • $31.98 P/E (TTM): 21.8X Cap: $294M
  • View XUT Profile
  • View Questions on XUT
• BMO Canadian High Dividend Covered Call ETF (ZWC $20.39)
  • $20.39 P/E (TTM): 12.59X Cap: $1.91B
  • View ZWC Profile
  • View Questions on ZWC

Q: Hi,
Would you please rate: ZWU XUT ZWC (best first), for a 5 Years hold!
Thanks

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Read Answer Asked by Fernando on April 04, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• iShares S&P/TSX Capped Utilities Index ETF (XUT $31.98)
  • $31.98 P/E (TTM): 21.8X Cap: $294M
  • View XUT Profile
  • View Questions on XUT
• BMO Canadian High Dividend Covered Call ETF (ZWC $20.39)
  • $20.39 P/E (TTM): 12.59X Cap: $1.91B
  • View ZWC Profile
  • View Questions on ZWC

Q: Hi 5i, In a previous Q/A you said "covered call ETFs can underperform in a bull market" can you please elaborate on this?.
Would you please rate: ZWU XUT ZWC (best first)
I own ZWU, but down 10%.
Thanks

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Read Answer Asked by Fernando on March 19, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Would now be a good time to take a long term position in ZWU for the covered call yield and some safety? Or does the sector rotation, rising interest rate potential and this news on MLP pipelines I don't fully understand mean perhaps wait a week or two as it might soften more?

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Read Answer Asked by Craig on March 16, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Canadian High Dividend Covered Call ETF (ZWC $20.39)
  • $20.39 P/E (TTM): 12.59X Cap: $1.91B
  • View ZWC Profile
  • View Questions on ZWC

Q: So if I'm seeking a 6% yield and wanted your one best pick for a safest both from an income as well as a capital preservation perspective ETF given current entry price which of these do I buy today why and is there another that you'd recommend instead - love - Ken

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Read Answer Asked by Ken on March 13, 2018

• H&R Real Estate Investment Trust (HR.UN $10.01)
  • $10.01 Cap: $2.75B
  • View HR.UN Profile
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• Algonquin Power & Utilities Corp. (AQN $8.12)
  • $8.12 Cap: $6.23B
  • View AQN Profile
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• Northland Power Inc. (NPI $17.23)
  • $17.23 Cap: $4.50B
  • View NPI Profile
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  • View Reports on NPI
• SmartCentres Real Estate Investment Trust (SRU.UN $25.23)
  • $25.23 P/E (TTM): 18.04X Cap: $4.49B
  • View SRU.UN Profile
  • View Questions on SRU.UN
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• American Hotel Income Properties REIT LP (HOT.UN $0.32)
  • $0.32 Cap: $23M
  • View HOT.UN Profile
  • View Questions on HOT.UN
• Crius Energy Trust (KWH.UN $8.80)
  • $8.80 Cap: $498M
  • View KWH.UN Profile
  • View Questions on KWH.UN
• Automotive Properties Real Estate Investment Trust (APR.UN $10.89)
  • $10.89 P/E (TTM): 42.12X Cap: $537M
  • View APR.UN Profile
  • View Questions on APR.UN

Q: Hello 5i Team.
I own these stocks for the dividend, in sectors that are currently getting hit due to rising interest rates (I assume). From your point of view, is it best, if one needs the income, to not be concerned with losing equity value and just continue collecting the dividend and hope that over time, these stocks will recover? Or is it best to sell and research other options. (I am 66 years young). Please also rate these stocks from best to least in terms of dividend safety and growth potential. Thank you for your wise advice.

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Read Answer Asked by Jocelyne on February 27, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH $70.69)
  • $70.69 P/E (TTM): 22.25X Cap: $181M
  • View ZUH Profile
  • View Questions on ZUH

Q: Hi Peter & Ryan, when using sector ETF's such as Utilities and Health Care, would you take a full position or half in each. Do you have any others than those listed.
As always thanks for your great advice.
Ivan

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Read Answer Asked by Ivan on February 26, 2018

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.74)
  • $13.74 P/E (TTM): 7.35X Cap: $1.06B
  • View CPD Profile
  • View Questions on CPD
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight REITs Index ETF (ZRE $21.47)
  • $21.47 P/E (TTM): 18.91X Cap: $570M
  • View ZRE Profile
  • View Questions on ZRE

Q: I am retired living on dividend income. I am interested in ZWU to increase my dividend income with its yield of 6.30%.
However, I noticed that it's cash distribution has been decreasing since Jan 2017. How is its cash distribution determined? With rising interest rates, will it's cash distribution continue to decrease? What income etf yielding over 4.5% would you recommend in this market? What percent position would you recommend for income ETFs?

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Read Answer Asked by Curtis on January 29, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Hi I was thinking of buying some zwu for income and hopefully a little growth it continues to drop what would be a good entry point and any reasons for the continue drop thanks

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Read Answer Asked by Dale on January 26, 2018

• BCE Inc. (BCE $32.59)
  • $32.59 P/E (TTM): 4.87X Cap: $30.39B
  • View BCE Profile
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• Enbridge Inc. (ENB $66.58)
  • $66.58 P/E (TTM): 25.72X Cap: $145.22B
  • View ENB Profile
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  • View Reports on ENB
• Enercare Inc. (ECI $28.99)
  • $28.99 P/E (TTM): 44.2X
  • View ECI Profile
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  • View Reports on ECI
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Could you please rank these holdings - in terms of a hold...If i wanted to raise some cash, which would you sell first in order?

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Read Answer Asked by Jeff on January 26, 2018

• BCE Inc. (BCE $32.59)
  • $32.59 P/E (TTM): 4.87X Cap: $30.39B
  • View BCE Profile
  • View Questions on BCE
• Fortis Inc. (FTS $70.68)
  • $70.68 P/E (TTM): 20.38X Cap: $35.72B
  • View FTS Profile
  • View Questions on FTS
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Is this a good opportunity to add to these types of names or do you see more weakness coming with interest rate fears lingering?

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Read Answer Asked by Kyle on January 11, 2018

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Hi,
Is there a reason why ZWU is down so much last few weeks
My utilities weighting is 20% with ENB at 8%
And vnr,aqn and kWh other 8% and ZWU at 4%
Please can you let me know if I should reduce and if so which one need to go
They are my long term holds and growing though drips

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Read Answer Asked by manish on January 11, 2018

• BMO Covered Call Canadian Banks ETF (ZWB $24.73)
  • $24.73 P/E (TTM): 11.7X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: I am looking for income and was wondering what the risks are in covered call ETFs. I am looking at ZWB and ZWU. Would they fare better in a market correction than pure ultility or bank stock ETFs?

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Read Answer Asked by James on January 06, 2018

• OR Royalties Inc. (OR $46.96)
  • $46.96 P/E (TTM): 60.33X Cap: $8.84B
  • View OR Profile
  • View Questions on OR
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU

Q: Thinking of sell zwu and buying OR. Previously bought OR at 14.13 in March and sold in Nov for 15.90. Is this a seasonal period for gold?

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Read Answer Asked by Roy on January 05, 2018

• BMO Covered Call Canadian Banks ETF (ZWB $24.73)
  • $24.73 P/E (TTM): 11.7X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO High Yield US Corporate Bond Hedged to CAD Index ETF (ZHY $11.16)
  • $11.16 Cap: $1.42B
  • View ZHY Profile
  • View Questions on ZHY
• BMO US Put Write Hedged to CAD ETF (ZPH $14.35)
  • $14.35 P/E (TTM): 27.13X Cap: $33M
  • View ZPH Profile
  • View Questions on ZPH

Q: I am an income investor seeking capital preservation over capital appreciation. I am thinking of purchasing some or all of these ETFs. Do they meet my requirements? How would a downward market correction affect these ETFs?
Thanks for your assistance

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Read Answer Asked by Glen on January 03, 2018

• iShares Russell 2000 Growth ETF (IWO $331.15)
  • $331.15 P/E (TTM): 23.11X Cap: $13.34B
  • View IWO Profile
  • View Questions on IWO
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• Vanguard FTSE Developed Europe All Cap Index ETF (VE $43.89)
  • $43.89 P/E (TTM): 20.97X Cap: $491M
  • View VE Profile
  • View Questions on VE
• Vanguard FTSE Emerging Markets All Cap Index ETF (VEE $45.19)
  • $45.19 P/E (TTM): 7.5X Cap: $3.17B
  • View VEE Profile
  • View Questions on VEE
• Vanguard Dividend Appreciation FTF (VIG $221.59)
  • $221.59 P/E (TTM): 24.09X Cap: $97.37B
  • View VIG Profile
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• SPDR S&P 500 ETF Trust (SPY $685.69)
  • $685.69 P/E (TTM): 27.29X Cap: $702.91B
  • View SPY Profile
  • View Questions on SPY

Q: I am very heavy on Canadian equities within my corporate investment account. My personal accounts are all a bit heavy on Canadian equities as well. Plan to purchase ETFs to balance. Which of your current ETF portfolio names would you add right now and is there any advantage to doing so within my INC., TFSA, RSP or personal unregistered account. Would invest a 5% positon in the next few weeks. Balanced equity portfolio is the target, 10 year horizon.

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Read Answer Asked by Tom on December 31, 2017

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• iShares Core Canadian Universe Bond Index ETF (XBB $28.09)
  • $28.09 Cap: $8.83B
  • View XBB Profile
  • View Questions on XBB
• iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ $40.34)
  • $40.34 P/E (TTM): 14.68X Cap: $1.07B
  • View CDZ Profile
  • View Questions on CDZ

Q: Good morning from the West Coast.
Merry Christmas and a Profitable New Year to all the staff at 5I.
My question : Is there a CDN ETF that has a monthly payout please?
Thanks
Rick

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Read Answer Asked by Richard on December 22, 2017

• BMO Covered Call Canadian Banks ETF (ZWB $24.73)
  • $24.73 P/E (TTM): 11.7X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight Oil & Gas Index ETF (ZEO $83.00)
  • $83.00 P/E (TTM): 6.81X Cap: $235M
  • View ZEO Profile
  • View Questions on ZEO
• Harvest Healthcare Leaders Income ETF (HHL $7.66)
  • $7.66 P/E (TTM): 23.53X Cap: $1.55B
  • View HHL Profile
  • View Questions on HHL
• State Street Consumer Staples Select Sector SPDR ETF (XLP $78.46)
  • $78.46 P/E (TTM): 23.97X Cap: $15.30B
  • View XLP Profile
  • View Questions on XLP

Q: What would be your recommended ETF's for the following sectors that would provide safety and a regular monthly income . Financial, Consumer, Utilities ,, Energy, and Healthcare. I have noticed that you generally prefer for retired conservative investors like me to follow more the income portfolio.
Your comments and recommendations are appreciated. Thanks.

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Read Answer Asked by Fred on November 30, 2017

• BMO Covered Call Utilities ETF (ZWU $11.14)
  • $11.14 P/E (TTM): 18.74X Cap: $1.93B
  • View ZWU Profile
  • View Questions on ZWU
• BMO US High Dividend Covered Call ETF (ZWH $24.89)
  • $24.89 P/E (TTM): 18.85X Cap: $1.08B
  • View ZWH Profile
  • View Questions on ZWH
• iShares Core MSCI US Quality Dividend Index ETF (XDU $32.99)
  • $32.99 P/E (TTM): 18.63X Cap: $236M
  • View XDU Profile
  • View Questions on XDU

Q: I own ZWH at present in a registered account. Is there any advantage to adding XDU (hedged or unhedged) for diversification? I am also looking at ZWU as a possible addition. Thank you.

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Read Answer Asked by Barrie on November 24, 2017