RE:RE:RE:Good Luck to All Longsauagntungsten wrote: I hold EIT.UN, a fund, Canoe,
been getting 10% for 15 years.
EIT.un, and others like it, are vehicles which return capital back to unitholders.
That 10% "yield" you're referring to is generated 3 ways:
1. Dividends from stocks held
2. Captured Capital Gains
3.
Return of Capital Pay attention to #3. If you don't know what Return of Capital is, in layman's terms, they are simply handing you your money back. This INFLATES the cash yield of 10%, the one you quoted to others here on PEY board.
In my opinion, these RoC equity pools are a ripoff, designed to dupe dumb retirees into chasing yield.
Next you'll question my comments, so below I've posted the tax information for that 10% yield you quoted:
https://www.canoefinancial.com/eit-income-fund/tax-information That 10% is really:
1.3% Dividends from stocks owned
4.6% Capital Gains (these VANISH during Bear markets)
4.1% Remaining is the Return of YOUR Capital
Overall, this is a holding for suckers.
You'd be better off owning ZDV, a sustainably managed basket of Canadian Large Cap Dividend Stocks. When you need money, sell some units.
EIT is ripping people off. It's usually bought by Clown Investment Advisors for grandmas and grandpas who don't understand the basics.
Oh, but wait, there's more!!
This is the best part, they charge you a massive management fee to do all this:
https://digital.lipperweb.com/canoe/profile?symbol=68196705&lang=en&filter=CDNSHAREDES:F#Overview According to their very difficult to find Fund fund overview, they charge a Whopping
2.13% annually to hand you your money back.
Gong show.