iShares Global Advantage Dividend E.T.F. (CYH-T)

Dividend income ETF. Will payout dividends over time. Global in nature - provides diversified income steams. Income(dividends) safe. Good compliment to a global portfolio  approach. 

International dividend growth ETF. He uses CYH as a benchmark. It is a global dividend index using the Dow-Jones methodology that is currency hedged. In the US, there is NOBL for dividend growth companies. Globally, he would look at ZWE for yield enhancement.

At market bottoms you don’t want ETFs with covered calls like ZWH-T because you are giving away some of the upside. You want ZDY-T or the currency hedged version of that. CYH-T is a benchmark for world dividends. It is a Canadian dollar currency hedged ETF. TDIV-Q is a technology dividend play.

It is a Canadian Hedged ETF. He would want to keep his US dollar exposure, however. There are both stocks and other ETFs in this. It is very sector biased. He would suggest XMW-T instead (See top picks for today) as you get much more diversification.

(RESP 15-20 year minimum?) European equities hedged to the Cdn$. Pretty much everything in Europe and the UK, but without financials. He would advocate a broader global strategy and without the Cdn$ hedge. This is a perfect time, because you can average in through all the nonsense that is going on.

RESP with an 18-year time horizon? He would say this is a good choice, but investing with a long-term growth horizon, dividend weighted stocks are going to be underperforming. He would much rather have something like a total world Index that is going to give you maximum upside growth.

A global high dividend paying ETF hedged to the Cdn$? There are a couple of options. The yield on this is just under 4%. It is hedged globally. There are many more choices in the US.

This ETF on a buy and hold basis is what he is trying to do in his global dividend fund. Some of these more interest rate sensitive payers may underperform for a while. The dividend sector will be challenged for a while next year. It is a decent ETF, but does not track its index very well.

(Top Pick Sep 30/14, Down 23.36%) The healthcare sector has been hit hard recently. They do community, non-urban hospitals. They acquired a health management company last year. They are trading just under 10 times next year’s earnings. The market has been brutal and it has been across the board and created wonderful opportunities.

There were some problems with this a year ago, but thinks they have fixed it. If you like the idea of global monthly dividends, this is fine. Don’t forget you are dealing with non-Canadian companies’ dividends and you are going to be paying tax as interest. He’d rather get a dividend tax credit.