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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have both of the above ETF's. Thinking of selling all of ZWB and adding to ZEB . While I like the high yield of the covered calls I think there is better opportunity for capital appreciation. with ZEB. as the values of all the banks are down. This would be aa long term hold. Your thoughts .

Read Answer Asked by David on May 29, 2023

Q: Doing a little research with Google I found that the TSX has had an average annual return of 7.94% over the 50 year period of 1971 to 2021 . { Please confirm or correct that number ? } I know 5I doesn't " like " to give portfolio weightings but I have in the past seen you comfortable up to 15% for some ETF's . Would HMAX be one of them ? It looks to me like I can have my cake and eat it too as it's dividend is superior to that of the average annual return of the TSX . Not quite, but close to double ......

Also I have always wondered just how much difference in performance { percentage } there would be between these three products { ZEB. ZWB out of the money calls, and HMAX in the money calls } . In the case of a 10% correction in the financial sector and also in the case of a 10% rise in the financials. Please speculate on what you would expect the return percentage for each . { you will have to speculate for HMAX because of its short history and supposed lack of volatility due to the use of in the money calls } This will help me grasp what to add or subtract to that 14% dividend for HMAX under the two scenarios ......

Read Answer Asked by Garth on May 03, 2023

Q: Growth investor, high risk tolerance, who enjoys dividends as well. Im currently sitting close to 21% in Financial Services, a combination of long held holdings with big gains; GSY, SLF, newer purchases down slightly; ZEB, HCAl, and the newest and worst performer ECN. Stock positions are close to 5% each, I add or trim accordingly, ETF's are smaller. I wrestle with knowing holding good companies long term is the way to outperform, against opportunity costs of holding underperformers and or overweighting the wrong sectors for the year. If you managed your own $, what % would you hold here, if trimming, what order ? Emotionally it's much easier to trim GSY with big gains than ECN at a loss, but then there is the trimming the winner and holding the looser thing?

Read Answer Asked by Charles on January 17, 2023

Q: I am new to the forum and 5I. Thanks for your great information! I wish I had subscribed earlier.
Can you give me a long term chart on the value and or return for these 2 ETFs? Because of the different dividends it is hard for me to value the two investments. Do you have a preference?
Thanks again

Read Answer Asked by Richard on December 07, 2022

Q: Do you think these ETF's are worthwhile investments in the Cdn. Bank area?
They both have high yields - are they sustainable
What is difference between the two? Which one is the preferred investment?
If neither are preferred - can you suggest an alternative?

Read Answer Asked by Reg on December 05, 2022

Q: Hello

Want to sell GOOG and AMZN in my cash account for the tax loss.

Replace them with FTS, PPL and ZEB. for dividend and safety.

Your comments thank you.


Read Answer Asked by Mike on November 03, 2022

Q: I noticed that ZEB..holds the six major banks. However, its dividend distribution is 3.33%. The lowest of the dividend from TD and RY are 3.8/ 3.9. and the others are 4%+ . Any reason for that? May be a good reason to switch over?

Read Answer Asked by DAVID on June 13, 2022

Q: As concerns ZWC vs ZEB: I had assumed that the former's high return-of-capital component were accounting-speak for capital gains from the sale of covered calls - essentially, a way to defer capital gains taxes until the position were closed. So what's not to like about deferring capital gains taxes, particularly for an stable, NAV-appreciating, income-oriented instrument like ZWC, which we would expect to hold for a long time? I.e., what am I missing about why lower return-of-capital should be 'better' - or, more generally, is there a threshold above which high return-of-capital creates some sort of weird risk?

Read Answer Asked by John on March 28, 2022

Q: HI!
In an income seeking portfolio, if one has a portfolio that is overweight financials, do you think it makes sense in the current environment to lighten up and add to pipelines and utilities due to the geopolitical events and risk of recession down the road. Thought in rate rising environment assets that benefit from rising rates were in favour but it seems telcos, utilities, and pipelines are moving more now. Obviously with price of oil, increase in pipelines is understandable and clearly yield curve is playing a role. What are your thoughts on whether increasing rates will eventually hurt utilities/pipelines. Thank you!

Read Answer Asked by Neil on March 08, 2022

Q: Hi, Market drop in the morning, Today and complete reversal after President Biden's briefing about Russia invasion of Ukraine was simply Extraordinary. Nasdaq, of course was the huge winner. Banks, on the other hand, were really weak at the open and did not gain much traction, during the day. Could you try to explain the disconnect, please.

RBC results were quite impressive, but it did not help the stock, Today.

CNBC, Bob Pisani commented that US Financials have been under pressure, the whole week.

We added some CM,RY,TD and BNS in the morning, for dividends and additional exposure to financials, to take advantage of market drop and due to expectations of the sector benefitting from rising rates. Do you consider it a wise move?

Thank You

Read Answer Asked by rajeev on February 25, 2022