iShares Cdn Financial Monthly Income ETF

FIE-T

Analysis and Opinions about FIE-T

Signal
Opinion
Expert
DON'T BUY
DON'T BUY
February 11, 2020

It's like XTR--the yield you seem to get is not what you're enirely getting. He'd rather do straight bond ETF or covered call one.

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It's like XTR--the yield you seem to get is not what you're enirely getting. He'd rather do straight bond ETF or covered call one.

COMMENT
COMMENT
August 20, 2019
Been around for a long time. Very popular on its initial launch. Diversified financials. If you are very yield sensitive you should perhaps consider keeping it. If you are thinking of it as a real kinda cushion for your savings he would recommend a more diversified portfolio beside just financials. 53% bank allocation.
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Been around for a long time. Very popular on its initial launch. Diversified financials. If you are very yield sensitive you should perhaps consider keeping it. If you are thinking of it as a real kinda cushion for your savings he would recommend a more diversified portfolio beside just financials. 53% bank allocation.
COMMENT
COMMENT
June 17, 2019
When you get a return of capital you are getting some of your own money back. In the next downturn, this will probably lose in the range of 30%. It's a fine ETF and the distributions are bigger than the underlying holdings. He does not like it from a couple of perspectives but there is nothing else wrong with it.
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When you get a return of capital you are getting some of your own money back. In the next downturn, this will probably lose in the range of 30%. It's a fine ETF and the distributions are bigger than the underlying holdings. He does not like it from a couple of perspectives but there is nothing else wrong with it.
BUY
BUY
April 16, 2019
Which Canadian financials ETF to buy? Do you want income or equal weight? Defer capital gains? FIE-T pays a monthly income and include preferred shares, corporate bonds and banks stocks, so it's diversified. If you don't want this income and prefer exposure and a total return swap and defer the taxation, then he suggests HEWB-T. You don't get dividends, so it's a great way to defer capital gains. But do you want to pay an MER to hold the big 6 Canadian banks?
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Which Canadian financials ETF to buy? Do you want income or equal weight? Defer capital gains? FIE-T pays a monthly income and include preferred shares, corporate bonds and banks stocks, so it's diversified. If you don't want this income and prefer exposure and a total return swap and defer the taxation, then he suggests HEWB-T. You don't get dividends, so it's a great way to defer capital gains. But do you want to pay an MER to hold the big 6 Canadian banks?
DON'T BUY
DON'T BUY
April 1, 2019
Thumbs down. It has a fixed distribution of 7% and if you look at what it holds you are looking at 3.5 to 4% so you are getting a return of your own money back.
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Thumbs down. It has a fixed distribution of 7% and if you look at what it holds you are looking at 3.5 to 4% so you are getting a return of your own money back.
DON'T BUY
DON'T BUY
March 12, 2019
What percentage of the distribution would be return of capital, not profits? You can look it up on the iShares website. He hasn't looked at this ETF in a while. It's an asset-allocation portfolio ETF. It uses a lot of financials and their bond and preferred issues to build a high-yielding portfolio. It also uses 15% leverage to juice its distribution to clients. It has a mixed of assets--preferreds and bonds. Pays nearly a 7% dividend. This underperforms financial sector ETFs, either flat or lower. This should stay flat on a capital basis. Look at XFN instead. basis. IT pays a 6.% but that means little stock price movement.
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What percentage of the distribution would be return of capital, not profits? You can look it up on the iShares website. He hasn't looked at this ETF in a while. It's an asset-allocation portfolio ETF. It uses a lot of financials and their bond and preferred issues to build a high-yielding portfolio. It also uses 15% leverage to juice its distribution to clients. It has a mixed of assets--preferreds and bonds. Pays nearly a 7% dividend. This underperforms financial sector ETFs, either flat or lower. This should stay flat on a capital basis. Look at XFN instead. basis. IT pays a 6.% but that means little stock price movement.
DON'T BUY
DON'T BUY
August 15, 2018

Doesn't like it at all. The problem is never trust yield. If an ETF is paying a yield that's higher than the yields of the stocks within that ETF, then where is the money coming from? The way this is presented to investors is unclear and
incorrect.

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Doesn't like it at all. The problem is never trust yield. If an ETF is paying a yield that's higher than the yields of the stocks within that ETF, then where is the money coming from? The way this is presented to investors is unclear and
incorrect.

DON'T BUY
DON'T BUY
May 22, 2018

People buy this for the 6% yield, but the banks and high-yield companies inside this ETFs yield only half that. Where's does the rest come from? This is about a return of your own capital to goose the yield, not a return on capital. You end up with a lower adjusted cost base, so when you sell it yet get whacked with a heavier tax.

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People buy this for the 6% yield, but the banks and high-yield companies inside this ETFs yield only half that. Where's does the rest come from? This is about a return of your own capital to goose the yield, not a return on capital. You end up with a lower adjusted cost base, so when you sell it yet get whacked with a heavier tax.

DON'T BUY
DON'T BUY
March 22, 2018

Not one of his favorites. One of those ETFs where there is the possibility of Return of Capital as opposed to Return on Capital.

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Not one of his favorites. One of those ETFs where there is the possibility of Return of Capital as opposed to Return on Capital.

COMMENT
COMMENT
February 12, 2018

It is a straight pass-through of distributions. When an ETF has a fixed distribution that is higher than what is in it, then you are getting some of your own capital in your distribution and the ETF provider could alter it.

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It is a straight pass-through of distributions. When an ETF has a fixed distribution that is higher than what is in it, then you are getting some of your own capital in your distribution and the ETF provider could alter it.

PARTIAL SELL
PARTIAL SELL
October 30, 2017

Preferreds and dividend payers. It is a great holding bu concentrated in the sector. It is at all time highs. He is reducing his exposure to the financial sector now. If it goes higher he would reduce more.

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Preferreds and dividend payers. It is a great holding bu concentrated in the sector. It is at all time highs. He is reducing his exposure to the financial sector now. If it goes higher he would reduce more.

COMMENT
COMMENT
September 26, 2017

How do you get your income? A nice way to get it is to own a monthly income ETF, you have to pay a fee for that. The issue is, do you buy your bank shares directly or own a bank ETF, and pay the manager 45 or 50 basis points to have the privilege of getting monthly checks. If you don’t have a lot of capital and you still need it, then it may be a better way than buying individual bank shares.

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How do you get your income? A nice way to get it is to own a monthly income ETF, you have to pay a fee for that. The issue is, do you buy your bank shares directly or own a bank ETF, and pay the manager 45 or 50 basis points to have the privilege of getting monthly checks. If you don’t have a lot of capital and you still need it, then it may be a better way than buying individual bank shares.

DON'T BUY
DON'T BUY
November 21, 2016

Good quality banks and insurance companies. It is not a good time to step in at this time. It is at all time highs. Its bonds are short term corporate bonds so you don’t have interest rate risk. The risks are far too high with these companies right now, however. He does not think Trump will cause interest rates to go up the way analysts predict.

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Good quality banks and insurance companies. It is not a good time to step in at this time. It is at all time highs. Its bonds are short term corporate bonds so you don’t have interest rate risk. The risks are far too high with these companies right now, however. He does not think Trump will cause interest rates to go up the way analysts predict.

HOLD
HOLD
October 3, 2016

It pays a fixed yield of 7%, but nothing yields that. You are getting back about 3% of your own capital. It is very concentrated in the financial area, so it we get into a financial driven systemic problem, this one will underperform.

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It pays a fixed yield of 7%, but nothing yields that. You are getting back about 3% of your own capital. It is very concentrated in the financial area, so it we get into a financial driven systemic problem, this one will underperform.

DON'T BUY
DON'T BUY
June 13, 2016

Likes this as a diversifier. You have about 22% of preferreds, 11% of corporate bonds, all of the banks and a lot of financials, some of the big dividend payers in Canada. It isn’t diversified much beyond financials, so there is a lot of sector concentration. If you are going to put this in your portfolio, and it is 10%-20%, he would be good with that. Make it a core holding. Valuation-wise right now, he doesn’t like financials. Thinks they underperform for the next year or 2.

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Likes this as a diversifier. You have about 22% of preferreds, 11% of corporate bonds, all of the banks and a lot of financials, some of the big dividend payers in Canada. It isn’t diversified much beyond financials, so there is a lot of sector concentration. If you are going to put this in your portfolio, and it is 10%-20%, he would be good with that. Make it a core holding. Valuation-wise right now, he doesn’t like financials. Thinks they underperform for the next year or 2.

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