iShares Cdn Financial Monthly Income ETF (FIE.TO)

They are paying back part of the capital from the bank stocks.

Nothing in the holdings yields the 7% that it yields, so you are getting about 3% a year in your own money. It is not a real yield.

BMO Covered Call Cdn Banks (ZWB-T) or iShares Cdn Financial Monthly Income (FIE-T)? In Canada he would stay with the covered call. The banking side is something that he is comfortable with.

This is 100% financials and is charging a very hefty fee of around 95 basis points. He has a feeling that there is a fair bit of return of capital. It would be an awful lot easier to just go and buy something like BMO Equal Weight Bank ETF (ZEB-T). He doesn’t like paying those kinds of fees.

These iShares basically take all the dividends, repayments, etc., so the yields can get quite high. Pretty much a flow through. This gives you all of the big banks and the big insurers in Canada along with bonds and preferred shares. It is kind of a funny blend and not one he would recommend.

Stock vs. Stock. Financial ETFs ZWB and FIE-T. ZWB-T has the covered call overlay which he likes. FIE-T holds a bunch of other ETFs. It has a fixed payment so you are probably getting some capital returned. You would get more protection in a downturn. Would like to see both in a portfolio.

Stock vs. Stock. FIE-T vs. CMR-T. CMR-T is a money market fund. FIE-T is a multi holding income strategy holding all kinds of assets, so there will be more volatility. When markets are up go into CMR-T and FIE-T when they are down.

Has performed well until the last little while. A large part (66%) of that ETF is in financial stocks. The distribution is driven to a great extent by dividends. He does not think this part of the market is going to struggle as interest rates start to rise.

Owns the banks, insurance companies and some of the asset managers. Also, owns ETFs. Nothing wrong with owning this. The rising interest rate environment generally is good for the financial sector. 6.62% dividend.

Similar to XIE. Prefers ZEB. Some of the returns have had some issues regarding return of capital rather than return ON capital. Good if you are a smaller investor. Just be aware of the costs. .9 expense ratio. Thinks .6 on a dividend play is too high.

This would be a great Hold, if you are looking for an income generating vehicle. If you are at a point in life where you want to have some income, this is a great way of doing it. 6.78% yield.

This is an oddball, basically in the sense that it is an ETF of other ETFs, so you get a real mixed bag of strategies. Sometimes believes that the “return on capital” can actually be a “return of capital” so you have to watch this a little. Could have place in your portfolio. It is pretty conservative.

Dividend is probably not sustainable. It is not as diversified as an income product as he would like. It is very concentrated with the banks. Not his first choice. Prefers VDY-T.

Technically this looks quite interesting. Chart shows a long-term upper trend as well as the upward short-term trend. Right now, this is above its 20 day moving average. Looks like a very attractive opportunity.

Pays a higher dividend than securities in it by paying back some of the capital. So it is not a pure dividend. See their web site for details. Thinks the dividend is actually in 4-5% range and rest is return of capital.