RE:RE:Some thoughtsHey CSC
Nice to hear from you. I do agree that you have quite a complicated portfolio but it sure seems to be working well for you and it sure generates a lot of income.
We initially got into FIE becaue of the high yield and because it had a few different things like CPD and XCB and also had a lot of financials. I also found it intriguing that they use some extra leverage to bump up the yield. I also read all the comments on it being bad because of its ROC but after holding for a while, I noticed that the unit price was still gradually increasing and of course, it was paying that great yield.
It's only a medium position for us and it has a low volatility so I decided to let it ride. We've been in since Mar, 2014 at $7.18 so that sort of dispels the non-sustainable over the long term theory.
I like ZWB for the covered calls and extra income. It is also only a medium position and again is something a little different for us.
When I started doing the grandkids investments, I picked individual stocks but have backed off of this a bit as it is such small amounts and too risky over their timeframe. I evaluated all the dividend income ETFs and liked VDY the best. We also have some ZWB for them as it sure gives great bank exposure for small dollar amoounts. I still left some BCE and EMA in their accounts as I do feel quite confident in them.
As an aside, the investments are actually in 2 non-registered accounts, 1 per family. I decided to let the kids do their own thng for RESPs. We also like it that the dough doesnt have to be used for post-secondary education. If one of the grandkids wants to use it to travel the world or something like that, then that's fine with us.
Let me know if you have any ohter questions.
Take care
Sarge
CanSiamCyp wrote: Thanks for sharing Sarge!
As you are aware, our portfolio has evolved into something quite complex with a mix of 30 Preferred Shares (about 40% of AUM), 14 Common Shares (about 20%), 12 REITs (about 15%) and 4 Private Equity Funds (about 25%). I anticipate a large chunk of our Preferred Share Portfolio will be redeemed in 2022 and beyond, and am pondering what to buy as replacement(s). All buys would be long-term buy-and-hold cuz we have set up our will to pass on the actual investments in-kind to our children.
Please share some specific details re your likes - namely VDY, FIE and ZWB. Whenever I have read about FIE, this iShares ETF always gets panned for the high RoC component and flagged as being non-sustainable in the long-term. And yet the popularity persists due to its high yield!
Like you, we are also putting money into RESPs for our grandkids; the attraction of putting $2.5 k per child per year is that you get the 20% grant money from Turdo. However, what to put the balances in which is safe and sound for the relatively short term of investing? I confess that I put the cash into one-year GICs and roll-over and add to the principal each year. Hardly inspiring, but 100% safe! I do not own any other GICs in our portfolio - only these!
Cheers! CSC