Investment Q&A

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

Q: Hello, I'm recently retired. I am seeking income generating vehicles for my various, registered plans (RRSP, LIRA, TFSA) to invest in. I'm considering an investment in ZWU. I'm wondering if there might be a similar, utilities based, covered call, ETF available for the American market?

Lastly, if any of these ETFs might also be available without the covered call overlay and if you believe that those versions of the ETFs might provide better, mid-term probability of a greater Total Return; I'd be interested in your opinion, as well.

Thank you!

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: I am wondering if investment in XYLD is a good idea in this market?
I am unfamiliar with the covered call concept - hoping that you might be able to explain it in layman’s terms.
If buying is acceptable in this market, when is it best to sell this type of investment?
Thank you for your expertise.

Q: I understand that ~30% of ZWU dividend is ROC. Would you say this is the case across the board for all covered call ETFs? Am looking at XYLD with this spectacular dividend, and am tempted.
And GE- industrial sector, well diversified, (seemingly) well priced
What do you think?
Thanks Jerry

Q: How do you determine what the total holdings are of this and other etf's above and beyond their top 10 holdings. Also is their an easy way to determine whether an etf's payout is partly return of capital. Thank you

Q: Hi

I refer to the question from Ian concerning XYLD.

In our RRSP accounts EQL represents 17% of our holdings.

As retirement is fast approaching I am thinking of splitting our EQL holdings with XYLD, for the dividend.

Would this make sense?

Thank you for your time

Mike

Q: It often seems difficult to find the holdings of covered call etf's and whether their returns include return of capital. Do you have a solution and your opinion of xyld for long term hold. Thanks for you expertise.

Q: is there a $CDN equivalent to XYLD?

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: Is there a dividend appreciation etf similar to VGG that has a covered call overlay and if so would you recommend in this market. Thanks for your expertise.

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: 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.