Investment Q&A

Q: Can you please compare HLYD and HDVI to BIGY and CANY in terms of leverages, dividends, NAV decay and which one would you recommend to own ?

Q: Dear Team:

After reading many of your Q&As. I understand the drawbacks of Covered Call ETFs!

IF I want to hold Canadian Covered call ETFs in my Non-Regd accounts, which two or three would your favourite (in a tax advantageous manner withdrawal).

Also, if you can direct me to the issue that addresses Covered Call ETFs in your ETF &MF Newsletter, I would appreciate it! May I request you once again to add search function in ETF&MF Newsletter! At least a yearly index for the articles. That way, I don't need to bug you often!

Many thanks.

Q: Can you give me the pros/cons of adding any of these to my TFSA. If so, which one(s) would be best if the goal is somewhat secure dividend yield.

Q: Looking at the idea of adding covered call ETFs to add some income. Understand how they work, can you recommend a few to take a look at and maybe why?

Q: I am an 80 year old value investor. In a diversified portfolio in all sectors, covered call ETF's as per above, make up 10% of my portfolio. I am satisfied with that and all but two are up. 30% of holdings are ETF's including the covered calls.
QUESTION:1. Am I holding too many covered call ETF's? They seem to take the stairs up and the elevator down faster than single stocks. 2. Is it supposed that the covered call ETF's will plunge faster than the single stocks in an expected steep correction?
Thank you

Q: This is a follow-up to the Sept. 11th question where you mentioned other funds that are similar to this. Could you name a couple that you would recommend please? Thanks.

Q: Hi. would like to know in what account (RRSP,TFSA,NON-REGISTERED) would be best suited for these ETFs and your best to less favored in order for each account type please. ZWB, HCAL, ZWK, ZWE, ZPW, UMAX, HYLD, HDIV, HDIF, ENCC. Thank you

Q: Do you consider HYLD as a reasonably safe place to store cash in my normally growth orientated TFSA while I decide on a growth stock I want to invest in long term? (The high yield is very tempting).
Thank you.
David

Q: I have small holdings in HYLD (1.54), FMAX (2.24) and HUBL (1.51) for 5.29% in my overall US Financial portfolio. I would like to consolidate into only one ETF. I am leaning toward HYLD. Would you have any thoughts on this?. Your comments please. At my age, I am only investing for Dividends, Distributions and Interest. Thank You.

Q: For my retirement, I have income coming from several streams. Rental income from property, employment income from an eight-week/year position (that I enjoy immensely), and a small RRSP account that I plan to use to earn 8% per year average and take principal and interest for monthly payments, using it up completely over 9 years, pushing off OAS and CPP until I’m 70 years old, when these benefits have maxed in value and can replace the depleted RRSP funds. Recently, I have been researching high income, 25% leveraged ETFs (I asked a question about them a few days ago, but this question takes the concept a step further), and I had the thought that it might be possible to buy a few ETFs for the RRSP, replacing all equities, and earn an average yield of 13%, which would cover the monthly payments while not depleting capital. I realized the capital may be reduced at the end of the 9 years, but likely not gone as in the original scenario, so any leftover funds would be a bonus. This would also free up time from managing my portfolio the way I do now, giving me more time to enjoy my retirement. Do you see any big holes in my theory? I wondered, for example how variable the dividends can be year over year. If this seems like a solid plan, could you suggest a portfolio of ETF’s (would 5-6 suffice?) that would serve this concept? (Note-I do have other investments, but they are not part of my monthly income streams, more a rainy-day fund.) Thanks!

Q: Given the current volatile market, option selling etfs seems to offer some tax efficient income while waiting for things to cool down somewhat. What is your opinion on investing in these vehicles? What is the risk / reward equation in an uncertain market. Is there one that you would prefer if you were considering for your income portfolio. Thanks

Q: I'm impressed by the performance of the Hamilton Etfs, managing a crazy high 'dividend' and not really losing price. How will the Hamilton covered call ETFs (I've listed only a couple examples) do in a down market -- will they outperform or underperform the market ? I know they are new products; are these ETFs at risk of 'bait and switch' in terms of some unseen fees or reduced distributions?

Q: I am an 80 year old income investor with some growth. I have $20,000 to employ. The above is a list of my losers out of 50 winners in a portfolio of mostly the Income Portfolio plus 15 yield maximizer ETF's like UMAX. Should I:
1. wait for your monthly advice before acting
2. distribute evenly accross the losers
3. add to the winners
Any other suggestions would be appreciated.
Please take as many credits as needed.
Thank you

Q: Hi there. With the recent uncertainty in the markets, what is your opinion on HYLD.CA?
Does it make sense to be more diversified when deploying new money in this current environment and have a larger amount of investable capital in ETF type funds that pay higher yields- as opposed to individual names? Do you see the Canadian dollar gaining some strength as we head further into 2025?

Thank-you as always!

Q: All things being equal, which ETF would you prefer for US exposure today with all that's going on, for a 3-5 year hold? A follow up to my previous question, would 50/50 in either maybe a better way to go?

Thanks

Q: So I am looking at a high yield Canadian issued ETF with distributions in USD. Growth is secondary to yield as it it is to partially offset the increasing costs of wintering in Florida. Is the price of HYLD.U.CA ( $14.75 ) in CAD or USD ; likewise what currency is the distribution ? I understand this ETF has 1.25 leverage.

Would this ETF met my goals of high income from stocks representing the broad US market?
Are there other products that meet my goals ?

Thanks. Derek.

Q: Does the Hamilton group of US etf.s like HYLD HBND. FMAX. HBIL have withholding tax if held in a TFSA or non regestered account? Thank you JIM

Q: Of these two etfs HYLD and HHIS how safe is the capital and which one would you prefer. Also would they be better for a RRSP, TFSA or NON REGISTERED account

Q: I own ZWA.TO and it has drastically underperformed anything close to the benchmark dow. IYY, a Dow proxy listed in USD, is up 34% in past year while ZWA is up less than 10% on a price basis. Being a covered call ETF, yielding less than 6%, does not explain this huge %-point performance difference. Nor the fact that it is CAD-hedged. How can it be so poorly managed? What is going on with these BMO etfs? Can you recommend a broad CAD denominated global equity covered call ETF so I can replace ZWA?

Q: Best of the Season to all at 5i,

Please advise your most well thought of covered call ETFs. Leveraged and unleveraged.

Thanks very much.