Investment Q&A

Q: In which type of account is it best to hold EIT.UN (RRSP, TFSA, CASH)? Thank you

Q: This is a comment in relation to Grant's question regarding "phantom" distributions by Canoe, which are technically tax-neutral if held in taxable account. However, this is a bit of administrative headache for investors, as you have to do ACB adjustments annually, and when you sell, your reported ACB will likely not match your broker's T5008 form submitted to CRA.
I use this free software for ACB adjustment calculations: https://www.adjustedcostbase.ca/

Q: Have held this for a long time in a cash account, and been reasonably happy with it. Certainly the monthly distribution has been consistent through all ups and downs (although I don't think it has ever been increased). Early in the pandemic I added it to my RSP, so have nice capital gains on top of the distribution. However, the last couple years EIT has made some type of year-end capital gains distribution for tax purposes that increases the ACB, but does not actually put money in your pocket. This is fine for the cash account, but useless in the RSP. Could you comment on the process they are using and why, and am I correct that this is not beneficial to an RSP holding. I realize that I am still getting the regular monthly distribution, but question continuing to hold this in my RSP when there are several relatively new ETFs that pay a higher distribution without this complication. Should I continue to hold EIT in my RSP?
Thank-you

Q: Does this fund have a "Fund Facts" document? I mean the regulatory document not the company promotional one. Cannot seem to find it on their website. Actually looking to see if they have a trailing commission>

Q: Good morning.

What are your thoughts on EIT. Seems like a good core holding for income focused investors given the yield. Solid geographical split and looks like monthly distributions are taxed as capital.

Anything obvious that I am missing?

Thanks as always.

Q: Could you tell me the MER of this fund and how and when do you pay it,also what are the top holdings and how safe is that juicy dividend…thanks

Q: I am looking for a list of dividend paying stocks that you feel will do just fine in the next 2 to 3 years and that will likely continue paying dividends. Besides continuing to pay attractive dividends it would be a bonus if the price would not take a significant hit with a correction. I have listed 2 of them to consider. Please comment on those 2 as well as some of your picks.

Q: Given recent price gains of this fund, do you see more growth? I currently own this in one account and am contemplating buying more in another account. Comments?

Q: I have an incorporated business investment account. There will be no new money coming in and I will not need the money for five to ten years. Currently, I have roughly 5% in each of CSU, SVI, WSP, MELI, and TSLA, and 10% in ZSP. The remainder is split between EIT and FIE, whose distributions are primarily capital gains and eligible dividends. Would you have some suggestions on how to tweak the portfolio? Thanks.

Q: Hello!
Now that I’ve reached the age of RRIF withdrawals, I’m looking more closely at income and therefore at covered-call ETFs.
I understand that these instruments don’t fully share in the upsides, but the income of ETFs like EIT, TXF and ZWU is pretty solid.
I’ve also been looking at UMAX its unbelievable 14% yield, but I also see that the unit price has declined quite dramatically over the last few years.
So questions are, how do you feel about these ETFs for income? And if you’re okay with them, which would you recommend?
Thanks for all your help
Michael

Q: I am relooking at the Fixed Income portion of my portfolio. The bulk is bond funds, but it also includes a few GIC’s and a HISA. But what about Preferred Shares, EIT, FIE, TXF, and UMAX, all of which I hold STRICKLY for their distributions? I am currently grouping them in with my dividend stocks but maybe they should be included in Fixed Income? EIT and FIE have paid out the same distribution for ten plus years. Thanks.

Q: You recently answered a question about HDIV and ETSX. I currently own ETSX and have been happy with the income and growth it has generated. I am thinking of adding HDIV or EIT.UN.
Could I get your comments on EIT.UN as a comparison to the other 2 funds?
I am a retiree looking primarily for steady income with some growth.

Q: Dear 5i team.

Can you shed light on why EIT appears to have similar volitility to the general market?
What are the top holdings? Does it use leverage?
Is this something that is just too volitile for a conservative investor? The wild ride with the market last few weeks has got my attention.

Many thanks for your help

Q: Hello. Could you comment on how the yield is achieved in this fund? Dividends will form part and I see leverage was mentioned in a previous answer (assuming there is a net benefit from additional yield over the cost of leverage). Does this fund also employ an options strategy? If no options strategy, am I right that a good chunk of the distribution over time has been return of capital? Secondly, could you comment on the volume/liquidity of the fund over time? I'm thinking of starting a position in this across our investment accounts but am concerned about what might be limited volume on entry or exit. Thank-you.

Q: Here is a challenge for investors to beat financing charges. The financing is 2.4% for 36 months and I need better than 2.6% to pay taxes on unregistered account. With a ladder of tbills, bonds and strips one can obtain 3.1% with very little risk. If one could live with a bit more risk ( say possibility -5% over the term) are there any other options such as a low volatility income fund or preferred shares?

Q: Hello Peter and Team. I am about to open a new TFSA account with almost 100K. Time frame of 5-8 years. Could you please recommend 4-6 growth/income stocks with 1or 2 ETF’s?

I was thinking BN, VFV, EIT.UN, TVK. Any other recommendations would be appreciated. Thanks for the amazing service. Brian

Q: I have a incorporated small business with some excess cash. I am taking out a small amount every year but the bulk will not be needed in the next ten years. No new cash will be added. I was thinking of investing half in EIT.UN and half in ZSP, but both are near all time highs. I would also be fine holding a handful of individual stocks. Would you have some suggestions? Thanks!

Q: In the growth portion of my RRIF i like the above three ETFs. Do you see any issues with any of these? Is there much overlap? Other stocks and ETFs focus on dividends, although Canoe is included in that group. Thanks.

Q: What is your current opinion of EIT.UN.ca - is it a good investment or would you have alternatives that are better?
Thanks

Q: I am finalizing RRIF portfolio focusing on safety and yield. I am trying to decide between Canoe Income fund and SLF. Performance-wise they look similar to me but with EIT having a higher yield. I would value your advice on selecting one of these unless you have an even better suggestion then that would be welcome as well. Thanks for all you do! Dan