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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: Dear 5i team.

Are the holdings in these two different enough to hold both? Is the lower mer of life good enough reason to only own it?
Understanding that they are covered call etfs, which non covered call etf would compliment them best to gain upside to sector rallies?

Thanks for your insights.
Read Answer Asked by Arthur on April 10, 2024
Q: Hello 5i,
So, retired, dividend-oriented investor looking to add to Healthcare in Canada for a RRIF. Our primary healthcare holding is a full position in HHL, for the yield. P.A. indicates that we are overweight U.S. and need to increase our Canadian holding while healthcare is underweight.
We were considering CSH.UN, but it seems to be classed as a REIT (real estate is also overweight), so that doesn't seem to be an option. The 2 remaining choices seem to be either SIA or EXE, both seeming somewhat problematic.
Since the latest questions I could find on either SIA or EXE date back to last fall, could you update your analysis on these two equities with a view to whether either would be a suitable investment for us and whether the dividends appear safe for the foreseeable future?
And, finally, are there any other suitable Canadian healthcare options that pay a dividend?
Where there is nothing suitable in Canada, my thought was to return to ABBV and suck up the geographical imbalance. Thoughts?

As always, many thanks for your awesome service!!! It is very much appreciated!
Thanks,
Cheers,
Mike
Read Answer Asked by Mike on April 03, 2024
Q: Hi Folks,
I am looking suggestions for my non reg account,
I currently have 7% weighting in HHL and 7% in ZWE. I am close to retirement age.
Also is there a website that indicates whether the income from etfs/ stocks are dividends or interest.
Cheers

Cheers
Read Answer Asked by Michael on February 08, 2024
Q: So a lot of people think that interest rates have peaked and are set to go down, thus the market reacts positively. I believe that interest rates have peaked BUT will remain higher for longer. I anticipate that the market will initially react negatively to this but eventually will settle down to the new reality and continue to react to such metrics as earnings growth etc..
Recognizing that no one really knows the future, what would be the likely scenario ( short and long term ) for each of the sector ETF’s I am invested in : Canadian banks , American tech, American healthcare, Canadian large cap industrials/ utilities. Thanks. Derek.
Read Answer Asked by Derek on December 18, 2023
Q: Hi 5i, we need to increase our Healthcare allocation.

Currently hold XLV in our non-reg account, and are satisfied with it.

We need to use CA$ funds in our RIF's to increase, and are looking
at HHL, XHC, and LIFE (little unsure with LIFE as their website has faulty info).

We are looking for income plus some growth.

Could you provide some analysis of these 3 options,
and any other suggestions that you might see.

Thanks as always for your assistance. T.
Read Answer Asked by Terrance on December 01, 2023
Q: I have incorporated these ETF’s into my RRIF with the goal of deferring taking capital from my principal ( mandatory and rising % withdrawal requirements ). They now represent 33% of total portfolio. My TFSA and cash accounts equal my
RRIF and are more growth oriented. The ETF’s give me a high yield, diversified portfolio of solid large cap, primarily low growth companies in Canada and the US. So I ask myself “ Why don’t I have my RRIF be 100% of these 5 ETF’s ? What say you ?

Thanks Derek.
Read Answer Asked by Derek on November 27, 2023
Q: Do you consider these companies a buy and if so at what price point would you purchase them?
Read Answer Asked by John on October 30, 2023
Q: I wanted to gain some clarity on your answer to Terry indicating that the high dividend returns with these etf's are almost entirely return of capital. So if an investor holds these their yields would not be taxed as dividend income in a cash account but the cost base would diminish accordingly so that when sold the capital gain would be greater. But if a long term hold and if the yield continues to be return of capital then does the investor collect these yields effectively free of tax? Any other similar etf's with high yields that are largely return of capital? Am I missing something? Thank you for providing certainty on this.
Read Answer Asked by Ken on May 23, 2023
Q: Good Morning
Would like your opinion on the Harvest Health Care ETFs? Need to increase health care in portfolio. Is there another way to invest in health care that you would be preferable?
Would it be advisable to be Hedged or Un-Hedged?
Thank you.
Read Answer Asked by Heather on May 11, 2023
Q: I am looking at reconfiguring my newly established RRIF into the above equities with the 3 etf’s being 25% each with the remaining 5 stocks being the remaining 25%. What is your opinion of these stocks and portfolio composition? Am I being too cute ? Thanks. Derek.
Read Answer Asked by Derek on March 23, 2023
Q: hello 5i:
recently, I asked a question about LIFE; thanks for the quick response. In hindsight, what I should have asked might have been: which covered call ETF, in the health care space, provides the best dividend rate, with the lowest return of capital. As we're dealing in registered accounts, return of capital is not of interest to me.
thanks
Paul L
Read Answer Asked by Paul on March 17, 2023
Q: Hello 5i,
I have reviewed the questions on these two ETF's and I would like to confirm my thinking. I need to increase both my international and U.S. sectors, one more than the other. As I understand it, if I purchase LIFE, then my international sector would improve over HHL and if I purchase HHL, then my U.S. sector would improve over LIFE. Beyond geographic sector allocation I am largely indifferent albeit with a slight preference for HHL more due to its MER more than anything else.
So, are my assumptions correct and would you have anything further to add in terms of preferring one over the other that I may have overlooked?
Many thanks as always!!!
Cheers,
Mike
Read Answer Asked by Mike on March 14, 2023
Q: I have HHL & HHL.U in my registered accounts for many years. It has been a good dividend (>8%) generator with its policy of options investment of about 30%. It has a high management fee of 0.85 and MER of 0.99.

LIFE is similar with almost half fee and dividend is equally attractive. Like to get your advise comparable merits of switching HHL to LIFE.
Read Answer Asked by Ritwik on February 22, 2023