BMO Premium Yield ETF (ZPAY.TO)

Can't compare ZPAY vs. TPRF because they're in very different risk buckets. He likes ZPAY, but doesn't recommend it be a safe haven for liquid funds.

 Loves it. He helped create this ETF. Half this is long with a covered call and the other half is selling puts to buy stocks at lower prices. It targets 6% returns or more. Is tax-efficient to get exposure to foreign stocks. There are currency-hedged and non versions. 

Will the CAD be 150 basis points stronger in 1 year? If yes, buy the hedged version. If not, buy the unhedged.  Given the weak enonomy, the BOC wil hold interest rates or even cut.

Downside protection, in the sense that it writes puts to acquire stocks. But there's also short volatility. When markets go down this typically goes down somewhat less, but it's not as protected as a buffer ETF.

Loves the strategy for income-focused investors, though you still want to wait for a correction to add. But after that, if you're wildly bullish, this is not the vehicle to generate massive capital gains for you. It's defensive, and great for those who want higher, tax-efficient income.

That said, good one to average in on dips.

No, it doesn't use leverage. Is cash-covered and T-bills which covers the naked puts they're writing to acquire other securities.

No, it doesn't use leverage. Is cash-covered and T-bills which covers the naked puts they're writing to acquire other securities.

No, it doesn't use leverage. Is cash-covered and T-bills which covers the naked puts they're writing to acquire other securities.

No, it doesn't use leverage. Is cash-covered and T-bills which covers the naked puts they're writing to acquire other securities.

No, it doesn't use leverage. Is cash-covered and T-bills which covers the naked puts they're writing to acquire other securities.

All US exposure. Uses optionality to generate significant income. There's a lot less risk to the overall market. However, it's all equity risk and it's US large-cap stocks. So if you're taking profits on riskier, growth-oriented investments, you're getting back into the same thing albeit with a better yield and risk/reward profile.

ZWU is utilities, mostly in Canada -- 30% US, 70% Canada. Pipelines and telcos. A lot less market sensitive. More defensive in theory; unless oil prices collapse, pipelines go down, and telcos go down further. If interest rates shoot up, utilities go down. He doesn't think any of those things are going to happen. So he'd pick this one as a more defensive way to make the shift to defense.

You don't need both. Pick one or the other.

It's equity risk and is about yield-income, so you will a lot of downside volatility in a correction.

Large-cap US companies, and does covered writing as well as put writing. About 55% of the portfolio is in cash. They use the premiums collected to purchase stocks at the put price. An active strategy, thinks they're pretty good at it. If you're looking for covered writing, it's a good choice.

Exact same as buying a stock, writing a call; exact same as a cash-secured put.

Has a US dollar unit. So the distribution is in USD. Attractive, risk-adjusted, tax-efficient distribution for the snowbirds out there.

Put-write covered call strategy, very tax-efficient yield strategy (though that doesn't matter in a TFSA). You'll have about half the risk of the S&P 500. If your house purchase is in the next year, then no. Not something you put your safe $$ in to use as a deposit for a house a year from now. If that purchase is 5-10 years down the road, then he likes it a lot. 

It's still equity risk, even though it's less risk with a higher yield.

Gives exposure to the US with a lot less risk and tax-efficient distribution though it's market risk, not the safer money-market risk.