Opinions Larry Berman CFA, CMT, CTA
iShares Canadian Financial Monthly Income E.T.F.FIE.A.TOCOMMENTMar 20, 2017
Larry Berman CFA, CMT, CTAUnknown
$6.91
Stock price when the opinion was issued
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COMMENT
He doesn’t like this. It is basically an accumulation of different income products, but this is a return of capital, so you are getting what looks like a very high dividend, but it is not entirely a return “on” capital, but is often a return “of” capital, in other words a return of your own money.
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COMMENT
Canadian balanced financial ETF with banks, bonds and preferreds. Very high income that comes from the underlying portfolio as well as return of capital.
Som SeifOwned
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BUY
Balanced ETF that includes banks and all the financials as well as preferreds and corporate bonds.
Som SeifOwned
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COMMENT
Balanced portfolio of equities, preferreds and fixed incomes. With the markets coming down, it has produced a yield of 12.5%, which is a little more than he would like. Possibility of a distribution cut.
Som SeifOwned
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BUY
Balanced portfolio of financials. Has equities, preferred shares and bonds of mainly banks and life insurers. Good ETF for broad balanced exposure. For a more targeted approach to banks he would suggest Claym Eq. Banc & Lifeco E.T.F. (CEW-T), which gives you exposure to the 6 large banks and the 4 lifecos on an equal weighted basis. (His company issues both ETF’s.)
Som SeifOwned
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The distribution on this is somewhat fixed. They are paying out north of a 6%-7% yield. If you look at what is in it, there is nothing that yields that much. Looking at all the banks and the other income generating securities this owns, the average is about 4%. This is paying out about 3% extra, which is capital gain you would’ve otherwise been getting from the share price. This is why you are not seeing a lot of upside in the price movement of this ETF.