Can you guys do a video on high yield CC ETF's? Many of us might be in the same boat, where we have worked hard, saved money, and now have considerable capital that we plan to use to retire on and are looking for investment vehicles to park that money in. In comes high yield CC ETF's (covered call) from the likes of Hamilton, Horizon, Harvest etc. With many of them paying yields north of 12% (some higher than 16%) they seem too good to be true. I understand that one of the reasons they can pay such high distributions is b/c of the options writing strategies they use to generate income, but still it seems too good to be true.
Hi Steph can you do a follow-up on HGRO which has since morphed into HEQT and started making distribution of about 2% instead of zero percent as was the case in HGRO
Guys! Great information. Thanks alot. For Herizon products, since they don't hold the stocks itself rather than a guarantee aggrements with bank. Can the banks or whoever that holds the agreement refuse to honor it? How safe these corporate class ETF's are?
I can't comment on whether the bank decides to not honor the agreement b/c I can't predict the future but the bank does get a fee for entering into the swap agreement and makes money that way. How safe is it? Also hard to know b/c I can't predict future legislation but corporate class funds have been around for a long time.
Hi Marion, historically small caps have overall higher returns than large caps by a margin of about 1% which is why Mark was referring to them having a 1% premium. Although in the past couple of years this premium has gone down due to the enormous performance by mega caps (think MSFT, AAPL, NVDA) - who knows if this performance will continue into the future...
Hi! just came across your channel- just wondering do you you have a video/resource for how to decide if its better to buy a home vs invest? maybe its. a loaded question
I’ll tell my family physician and MD friend about you. Edit: BR and VG have trillions in AUM. Big Cdn banks are global. If they go under the world has big issues. 😊
𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
0:00 - Intro
3:14 - The Big 4 Providers of Asset Allocation ETFs
4:52 - Stock:Bond Allocation of each ETF
6:10 - Net Assets & Daily Volumes of each ETF
11:29 - Underlying Equity Holdings
18:29 - Underlying Bond Holdings
23:40 - TFSA: Fee & Tax Drag Comparison
27:37 - RRSP: Fee & Tax Drag Comparison
28:12 - Personal Taxable Account: Fee & Tax Drag
29:39 - Corporation: Fee & Tax Drag
33:50 - Summary
𝗧𝗶𝗰𝗸𝗲𝗿 𝗦𝘆𝗺𝗯𝗼𝗹𝘀:
1) Blackrock iShares: XEQT, XGRO, XBAL, XCNS
2) BMO: ZEQT, ZGRO, ZBAL, ZCON
3) Horizons: HGRO, HBAL, HCON
4) Vanguard: VEQT, VGRO, VBAL, VCNS
𝗢𝘁𝗵𝗲𝗿 𝗿𝗲𝘀𝗼𝘂𝗿𝗰𝗲𝘀:
1) ETFs Made Simple (Pt 1): czcams.com/video/lWBRXthIeZc/video.html
2) Efficient Investing in a Corp/RDTOH: czcams.com/video/7a_R3CkufBU/video.html
3) Loonie Doctor Blog Article: www.looniedoctor.ca/allocation-etf-comparison/
Very nicely explained both of you👍
So helpful both of you. Thanks!
Can you guys do a video on high yield CC ETF's? Many of us might be in the same boat, where we have worked hard, saved money, and now have considerable capital that we plan to use to retire on and are looking for investment vehicles to park that money in. In comes high yield CC ETF's (covered call) from the likes of Hamilton, Horizon, Harvest etc. With many of them paying yields north of 12% (some higher than 16%) they seem too good to be true. I understand that one of the reasons they can pay such high distributions is b/c of the options writing strategies they use to generate income, but still it seems too good to be true.
Hi Steph can you do a follow-up on HGRO which has since morphed into HEQT and started making distribution of about 2% instead of zero percent as was the case in HGRO
Guys! Great information. Thanks alot. For Herizon products, since they don't hold the stocks itself rather than a guarantee aggrements with bank. Can the banks or whoever that holds the agreement refuse to honor it? How safe these corporate class ETF's are?
I can't comment on whether the bank decides to not honor the agreement b/c I can't predict the future but the bank does get a fee for entering into the swap agreement and makes money that way. How safe is it? Also hard to know b/c I can't predict future legislation but corporate class funds have been around for a long time.
14:50 what is meant be the small cap premium being about 1%?
Hi Marion, historically small caps have overall higher returns than large caps by a margin of about 1% which is why Mark was referring to them having a 1% premium. Although in the past couple of years this premium has gone down due to the enormous performance by mega caps (think MSFT, AAPL, NVDA) - who knows if this performance will continue into the future...
Hi! just came across your channel- just wondering do you you have a video/resource for how to decide if its better to buy a home vs invest? maybe its. a loaded question
Hey, I don't have a specific video on it but it was covered in this video - I have linked the timestamp here: czcams.com/video/vjCjU9hjAI0/video.html
I’ll tell my family physician and MD friend about you. Edit: BR and VG have trillions in AUM. Big Cdn banks are global. If they go under the world has big issues. 😊