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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: Is there some way to score-board enhanced-yield Canadian bank ETFs/funds that assigns more weight to the factors that make more of a difference? Yes, fees add up, but even over the long term it's hard to see how basis-point fee differences could outweigh percentage-point yield differences. And won't either of these factors be outweighed by distribution tax treatment and, especially, by central bank rate-pivoting?

Further, in side-by-side comparisons, 5i often prefers larger ETFs (recently, for example, when comparing CBNK vs BANK.) But given large-cap banks' similar value-propositions and tendency toward mean-reversion, why should higher AUM matter (other than w/rt second-order effects like trading liquidity)? Put another way: what, if anything, could a new entrant to this sector do to make themselves attractive to 5i?

Please add to the supplied symbol list if other names provide more instructive comparisons.
Read Answer Asked by John on January 12, 2023
Q: I am currently somewhat overweight bank and gold stocks. Would these covered call funds be complimentary or simply increase sector exposure even more?
It's very hard to ignore the 11% yield with GLCC and BANK for an income seeking investor.
Why is ZWB 7% while BANK is 11%

thank you
Read Answer Asked by JACK on September 09, 2022