Investment Q&A

Q: The covered call strategies I have seen discussed to date are exclusively equity-oriented (e.g. QYLD, XYLD, RYLD, etc.) What do you think of the potential of TLTW assuming the relative volatility of the bond market stays high-ish?
Do you have alternatives to TLTW with a longer track record?

Q: JEPQ uses ELNs(up to 20%) in order to generate covered calls instead of writing covered calls on its assets that would limit upside potential.This means that JEPQ has a capital appreciation potential,and at the same time offers significant monthly income.I suppose though that QYLD will be less volatile than JEPQ.If I wish to take avantage of a future NASDAQ recovery and also obtain a revenue,JEPQ seems to me more interesting than QYLD .To summarize my question : is my impression OK ,and are there any avantages to hold QYLD instead of JEPQ ,(except of the higher yield ?

Q: QYLD writes calls options ATM on "100% of assets" wich means on all NASDAQ index or all assets ? I seems to me impossible and much to risky to sell call options on 100% of the NAV of the fund( since they could have to sell all of the fund eventually ..) but it would be logical for me to sell call options on a certain % of all the NASDAQ index (a % on 100% of NASDAQ 100 stocks)! I read that this % was 2%,but I found nothing about this point on global X website except this "calls on 100% of assets"...Did I misunderstand the whole principle of this fund ? thanks for explanations

Q: What is your opinion of Virtus Infracap U.S. Preferred Stock ETF? How does it stack up, from your perspective, to QYLD?

Q: I have all three in my RRSP account. QYLD and XYLD weren't good performers this year and, to add to the misery, they reduced distributions lately. JEPI was performing much better and they kept their distributions virtually unchanged. When we get market recovery, do you expect JEPI to outperform QYLD and XYLD or QYLD and XYLD are likely to outperform JEPI as they dropped more this year? I am considering selling QYLD and XYLD and buying more JEPI. Thoughts?

Q: I’d like to start a position in one or more income funds that offer a very high yield, but I’m not sure which ones to choose. As of Wednesday Oct 5th, these are the indicated yields I’ve found:

CLM 23.92%
PDBC 20.65%
SDIV 15.31%
QYLD 14.19%
RYLD 14.05%
XYLD 13.05%
BIGZ 11.01%
JEPI 10.94%
PDO 10.90%
PDI 10.79%
BXMT 10.38%
MPW 10.17%
STWD 9.84%
EIT.UN 9.42%
IDV 8.15%

Would you recommend any of these or do you have other suggestions? Are any of them too risky if the bear market deteriorates from here, or can they all be held long term? Are some of these yields too good to be true, like CLM and PDBC? Thanks for your thoughts.

Q: Looking to add to my income portfolio and trying to decide between QYLD, RYLD, XYLD, HHL-U and Keg-un. Can you recommend which you would select for a patient 68 year old and your reasoning behind your choice please. Thanks again.

Q: Looking for income in a RIF account. And “ safer” companies in terms of stability.

These two stocks appear to meet the criteria. The dividends are in the 10-12% range

What do you think ?
Would you have a preference given the similarities in holdings?

Thanks.

Q: What is your view on QYLD as a place to stash cash in the current market? Looking at the chart, although its unit value has dropped since inception, it seems to have held its value on a total return basis - would you agree? Any better recommendation?

Q: Could 5I please give me the annualized return for QYLD dividend plus capital gain/loss for the last five years..... Looking at the chart in my TD Webroker it looks like not much more than the dividend . Which TD shows as 11.35% ...... I'd like to get two numbers if I could ..... One ignoring the current correction in the NASDAQ { 2022 } and one including it .......Thanks Garth

Q: Hello,

QYLD ETF has recently raised their dividend from 0.22 USD to 0.50. I am confused whether this is in lieu of paying out two consecutive months or is it a their dividend/share going forward? I am looking forward to your comments.

Q: I have enjoyed the ride up in the markets over the last year but am now looking to shift a chunk of dollars out of what has been labeled the Cathie Woods stocks. And potentially give up some upside potential for income.

With that in mind I am looking for high dividends with consistent payouts.

Looking at these etfs as a GROUP would they meet this criterion? ie payouts remain relatively stable if the market dips as some are predicting right now.

A drop in share price could be tolerated but the prospect of a significant decrease in the monthly dividend would not.

I guess this is a risk reward kind of question.

THANKS for any guidance you can provide.

Q: Investing in high yield securities involves assuming the accompanying risks of course ... One can own an individual stock like ENB, a covered call ETF like QYLD or even a mortgage backed security company like NLY . Looking on RA's website it appears the major holdings are 40% global infrastructure and 38% real estate with a mixture of investments to make up the balance . I recently read an article on Seeking Alpha which called it a " Widows and orphans " security which kind of shocked me for such a high yielding stock ..... Could you give me a comparison of RA's price movement in comparison to the S&P 500 since inception ? An assessment of the risks in comparison to the three securities I have mentioned ? As well as a breakdown of how 5I views their investment strategy ? ...... { in the normal font size if possible }

Q: Further to my question regarding US financials and covered call etfs.
First thanks for your answer.
Both CALL and ZWK trade in CAD. Are there any USD denominated covered call etfs?
Or is there more merit in owning USA etfs in CAD?

Thanks.

Q: Hi 5i team,
This covered call etf shows 12% yield . Is that correct. Please can you explain how is their strategy different from ZWh.u which has 5.7 yield and .75 exp. is it a safe investment to generate regular cash flow for long term

Q: Hello 5i team, curious to know your thoughts about covered call ETFs, and whether they provide any interesting opportunities for portfolio diversification/hedging. If yes, would appreciate any suggested ETFs for Canadian, US and more international exposure. Thank you!

Q: Need income, Like to convert from equity to ETF's with a dividend of 5-7% for the next 10-12 years ...15 Etf's... 5Can.5 US and 5 International. or close to that. Cover call ETF's OK, Dividend Growth always good. Leaning towards income first.
Many thanks for your excellent service.
Cec

Q: My TD Waterhouse account currently shows QYLD as yielding 12.4 %. Pretty sure it didn't yield that much when I bought it for a lesser price. Could you confirm that yield is correct and explain it for me ? I know the yield is a combination of dividends and writing covered calls but suspect the ETF uses a strategy to achieve a yield between a certain range. If that is accurate I would like to know what that range is ? Also I realize portfolio weightings are a personal thing but could you give me a range of low to comfortable high for a weighting in this ETF in an RRIF ? I currently have a 4% position and am considering increasing it to 6 % or 7% Could go higher depending on what 5I's advice is . ...... Thank you for your sage advice during these volatile market times.....

Q: Greetings and Happy New Year,

What are your thoughts on QYLD? The yield is nice but has it underperformed its benchmark overall?

Cheers!

Q: I HAVE VERY LITTLE EXPOSER TO TECH AND I WOULD LIKE YOUR OPINION AS TO WHICH IS A BETTER BUY AND WHY. THANKS, JAMES