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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: This is more of a response to Stephen regarding his question about Zwc-I am also retired and purchased Zwc in the fall of 2017. I purchased the units around 19.50 when the tsx was around 16,500. Currently the units are close to 17.00 however the tsx is close to 21,000. My dividend paid since 2017 far out way the capital loss currently however I am speculating that over time the market will continue to rise as it has over the past many decades. Eventually I expect to get my capital back and perhaps a little more-no guarantees so I will keep my fingers crossed
Read Answer Asked by Bradley on December 20, 2023
Q: Retired, dividend-income investor. I bought a 4% position in ZWC in 2017 and it has just been "ok". I'm probably going to give it a few more quarters to see if/how it recovers from it's current price. Over the time I have owned it, I have averaged around 4%. The dividend I get is directed to other investment opportunities.

If I decide to flush ZWC, I am interested in purchasing a USA-focused ETF that pays a reasonable dividend and is eligible for the Cdn dividend tax credit. It should cover the various sectors of their economy and include the magnificent 7. I am more of a value investor and hesitate to buy something that has already had a big run-up. However, there is the theory that there is still room for the Mag-7 to run.

Do you have a few ETFs that I could research...thanks...Steve
Read Answer Asked by Stephen on December 19, 2023
Q: “Horizons ETFs Management (Canada) Inc. said that since no distributions are expected to be paid, the ETF will be more tax-efficient for investors who hold it in non-registered accounts.”

Can you please recommend me a few Canadian and US listed alternatives that I may want to consider?
Read Answer Asked by MG on November 13, 2023
Q: I would like to put about 50% of my portfolio into safe, higher yielding (10%+) Canadian focused ETF's or Mutual Funds, and adjust my holdings as needed going forward based on sector performance. I feel that both Banks & Utilities are nearing lows and that a further correction may occur in the general market due to tax loss selling or possibly one more rate hike. Do you feel that the mix of ETF's listed provide a safe way to invest with the goals indicated? What % for each, as part of the 50%, would you recommend as a holding, and how would they be treated for tax purposes? Thanks for the great service and please use as many credits as necessary.
Read Answer Asked by Will on October 25, 2023
Q: Would like to get your view on ETFs that use covered call options to enhance returns. As interest rates plateau and eventually begin to fall is there anything 'in general' that we can expect from these ETFs? Will the share price increase, like bonds, to bring yields more inline with expectations or is the share price more influenced by the underlying share prices of the stocks held in the ETFs?
Read Answer Asked by Larry M. on September 18, 2023
Q: I am at a point in my life where I am looking to my investments more for income than growth. My question concerns how you might incorporate a strategy that are includes "dividend" stocks that pay a low yield. eg HD, TRI, CN etc. Assuming you wish to obtain an overall yield of 4% - 5% from your portfolio (in order to satisfy RRIF requirements while maintaining some growth) I would think it best not to load up only on high yield stocks and continue maintain a balanced portfolio. To achieve the necessary income should one invest in low dividend payers and sell a portion of the low yield dividend payers annually in order to achieve the be needed income; go a bit overweight on high yield equities in order to juice the income; or just forget about balancing the portfolio?

Any thought you have would be greatly welcomed.

Appreciate the insight.

Paul F.
Read Answer Asked by Paul on September 14, 2023
Q: I'm going to set up a TFSA for my daughter she has 41K in available room,for a 5 year duration with the hopes of cashing it in for a down payment on a house.My strategy is to put 10K in 4 funds by setting them up as DRIPs not worried about price appreciation(although that would be great)looking to get 6-10 % on dividends,would like to stay primarily Canadian could you comment on the 3 ETFs i am considering and also could you recommend 3 different options of ETFs that could work ....Thank you for your great service
Read Answer Asked by Greg on July 12, 2023
Q: Hi, I'm slowly transitioning from a growth portfolio to a dividend portfolio for retirement, starting with positions in JEPI and JEPQ. Can you suggest a couple of US and a couple of Canadian ETFs with high dividends (+6%) that would complement these two? Thanks!
Read Answer Asked by TK on July 10, 2023
Q: Hello, just wanted your updated opinion on HLIF to generate income. I would also appreciate another choice of covered call ETF with more history and with which you would be comfortable for maximum income without undue risk. Thanks.
Read Answer Asked by Martin on June 08, 2023
Q: Retired, dividend-income investor. I hold AQN in my RRSP, bought it in 2011 at $5.60 (not a typo) and have trimmed it multiple times due to asset allocation. Not that it matters, but I am still up 15% over my ACB.

Looking forward is what really matters. AQN is up roughly 20% from it's low of around $9/share. Q#1 = Do you think AQN can continue their short term performance?

I hold AQN, FTS, TRP, NNRG, NRGI, and utility-energy stocks held within CDZ, ZLB, ZWC. Q#2 = What conservative utility or infrastructure stocks should I consider that might "fill the gap" in my current holdings? Please list 4-6 stocks for me to do further research on.

Q#3 = Should a component of "renewables" be a consideration? That was one of the reasons for holding AQN. Ideas?

So the bottom line is = what's done is done. AQN appears to be starting to recover and there is always the chance of being bought out.
1. Hold of sell,
2. Replace with what,
3. Include renewables?

Thanks for your help....Steve
Read Answer Asked by Stephen on March 22, 2023
Q: Looking at 3 very different asset classes that offer high yields and would appreciate your help in sorting which ones offer best risk/ reward.
1. Covered calls: NXF, ZWC, ZWU, LIFE, JEPI;
3. Yield - GCOW, EIT-UN.
Questions: 1. What is your comfort level on risk/reward for any or all;
2. Please choose which are investable with short commentary as to rationale and and target buy prices
Read Answer Asked by sam on March 09, 2023
Q: A portion of my portfolio is invested in the BMO Covered Call ETF's. In their fund prospectus, they indicate that a portion of your return is a return of capital. Is this a return of invested capital or is this the return of the premiums collected from writing the calls against the underlying securities?
Read Answer Asked by T Michael on January 17, 2023
Q: These are my current holdings and I am looking forward to 2023. They are held in relatively the same quantities in 5 different accounts, a RRIF, 2 TFSA's and 2 Non registered accounts. I am retired an enjoy the income. Do you see any issues with these holdings or have any suggestions looking forward. The only non dividend holding is AR.
Take any extra credits as necessary. Thank you in advance. Enjoy and appreciate 5i'S help. Happy New Year.
Read Answer Asked by John on January 10, 2023
Q: Hi, can you suggest a few ETF'S and covered call ETF'S to put in a self directed RRIF, providing income and some growth. I know you're not keen on giving specific portfolio construction, IE, everyones circumstances are different, I would really appreciate just a few ideas for core holdings.
Thank's James
Read Answer Asked by James on January 09, 2023