Investment Q&A

Q: Thanks for your advice on greater than 10% covered call ETF's in a Trump tariff world .... Of the ones you { and the one I chose HPYT } I am leaning toward a combination of HBND and HPYT for bonds. UMAX for a non volatile stock ETF, and XYLD for US exposure .....

However I am not well versed on bonds . Could you explain the differences between the two ETF's ? I have noticed that they peaked in mid September and declined since. HPYT has declined by 10.65% and HBND by 12.66% ..... What market conditions account for the price action between September and now ? I have no idea what bond durations are or what the significance of a " long " bond is but I am curious why HBND has had the bigger decline of the two ? ..... If HPYT is the less volatile of the two I'm inclined to go for the juicier dividend ..... Please explain the differences between the two ETF's and what circumstances will effect one over the other ? ..... I'm inclined to make my bond ETF purchases now and my stock ETF purchases after the tariff announcements . Would you endorse this strategy ?

Also UMAX isn't really a utility ETF . It is Communication Services 23.2%, Pipelines 22.0%, Industrials 23.6%, and, Utilities 31.2% ..... Is this something I should consider ? Or do you still put it in a defensive category with a minimum of volatility potential ? ......{ I like the juicy 14% dividend but unsure how 5i evaluates it in a Trump tariff world } ..... Thanks for your terrific service ......

Q: I realize the higher the yield the higher the risk but I would like 5i's opinion of a few products. As a result of the American President's threats of tariffs which I feel are coming in thirty days I have been rebalancing . Canadian ETF's to American ETF's as well as the sale of tariff risk Canadian stocks . RRIF cash position currently { 30% } .... I would like to take some small positions in some greater than 10% covered call ETF's ..... These would be short term positions as I believe it will be 1 or 2 quarters before Mr Market realizes tariffs are a really bad idea ......

So which do you like better in a Trump world of tariffs ? A covered call bond ETF, a covered call treasury ETF, a covered call stock ETF ? I've been eyeballing HPYT for the simple reason that it appears to be at a low with a very high yield but I would like 5i's opinion. Could 5i list four or five ETF's which you feel would be good choices to play this theme ? It's okay if some of your choices are sub 10% ......{ I already own HYLD.U 6.9% position } And which sectors { bond, treasury, stock } would be the best choices in a Trump tariff world ? .... Thanks for your terrific service ......

Q: What's your opinion on active ETFs vs passive ETFs?

Would you recommend an active ETF?

Thank you.

Q: I have finally sold my Bitcoin from my US RSP at a small loss. After a long hold with no dividend, I would like to purchase US Efts with a 5- 10? dividend a would appreciate your opinions on this. Thanks, James

Q: Are there any other U.S dollar denominated comparable ETFs? I would be interested in holding a modest position in such a vehiicle, but am concerned about the tax consequences relative to, say, VIG. The newness of this issue is of less concern given th reputation of RBC. Thanks to the team. Bill

Q: Good Morning,

Please advise your top 5 covered call ETFs with associated yields, brief descriptions and a degree of growth potential.

Thanks very much.

Q: What is the best covered call option ETF in your option today?

Q: Good morning,

What an amazing job done here. My son is enrolled in a private school starting this year.

I'd like to tailor my non-registered to an income account to cover his monthly payments with capital preservation in mind.

I am comfortable with any and all options including covered call.

Rough metrics for this are 120k. Yielding 6% and greater.

Thank you very much.

Q: Is there a comparable (covered call strategy, risk, rate of return, and multi-sector approach) etf that trades on the US market?
Thank you

Q: Hi Peter,
For my RRIF, I want to invest in covered calls ETFs that generate high income with some growth potential for long term hold. Given the current market with possible near term interest rate cut, please share your top four Canadian listed covered call ETFs and top four US listed, with their respective current yield. Thanks.

Q: On march 28 question ,I was interested by the topics and by your answer,that seems to consider the 3 ETF in the same category :"HMAX would fit in this category as it does employ a covered call strategy targetting Canadian financials and primarily the 'Big 5' banks. Some covered call ETFs we like are QYLD and XYLD. We also think Hamilton ETFs line of covered call ETFs is solid, although some are very new and small which we would watch out for. ". Personnaly I did not choose QYLD and XYLD since I don't consider them in the same category as HMAX and others ETF as BMO ETF etc.. QYLD exerts options on 100% of its portfolio,wich limits upside and could lead to a significant long term downtrend; this is not the case for HMAX whose options are on 50% of its portfolio and consequently it keeps some upside potential.Is my comprehension OK or Do I miss something?

Q: Which covered calls ETFs would you recommend for short/long term. Would the HMAX fir this category?

Thanks for your service!

Q: I understand that TGED and TUED ETF's use both Call and Put option strategies to produce income. One is a global ETF and the other is a US stock ETF both available on the CDN exchange. Can you help suggest some ETF's available on the US exchange that use both Call and Put option strategies targeting the World and US stock markets. thanks

Q: Can you recommend some high paying US stocks or ETF's to hold in my Rif account. Please include some that distribute monthly payments if possible. I am mostly interested in income, not capital gains seeing most of my US investments are down. Thanks, James

Q: I'm interested in investing in several ETFs that use the covered call strategy to protect from downside pressure on their prices. I'm attracted to the high monthly distributions that some of them pay. Understanding there are disadvantage to this strategy if the market. turns up, please suggest 4 or 5 ETFs that you believe have a good chance of holding their value or increasing it while maintaining their distributions going forward.

Q: Good morning 5i, I am looking to add some covered call ETF’s to my holdings. Which covered call ETF’s would you recommend in the sectors of industrials, tech, consumer discretionary and energy. Which would you recommend reflecting the S&P 500.
Thank you in advance
Dan

Q: Hi

We still have 500 shares of GSY in our RRSP accounts

Thinking of selling and buying BAC. Both are beaten up. However I am thinking BAC
has a better chance of recovering in a shorter time frame with less government interference.

Your comments or other suggestions in the US are most welcome.

We already have CROX, BRK.B, CELH, PERI, NIO, INMD, LNTH, IFRA,XYLD, IYW

Thank you

Mike

Q: I hold XYLD and CIC, they are the only covered call ETFs I hold and I am new to them. Is there a way to track or find charts on their total yield? I seem to only find charts of their change in NAV which make them look like dogs, while they return 13% and 8% The other question I have about them is , why are they not drip eligible?
Thanks

Q: Hi

Is it time to lighten up on the following and look at growth stock..

In our RRSP we have

LIFE at 5% of the RRSP (still not underwater)
XYLD at 9% of the RRSP
ZWU at 5% of the RRSP

Like the dividend but two holdings are are dropping in valve.

Thank you

Mike

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