Q: Hello all. Could I have your opinion please on CGFX, a gold ETF containing the largest gold miners. It pays a distribution yielding around 6%. They do this by writing covered calls on 25% of the portfolio. Too good to be true? Thanks.

A: The CI First Asset Gold+ Giants Covered Call ETF, $17.20, symbol CGXF on Toronto (Units outstanding: 24.8 million; Market cap: $426.6 million; www.firstasset.com), holds an equal-weighted portfolio of the 15 largest gold and precious-metal companies as measured by market capitalization. Each is listed on… Read More

Pass on this ETF: Horizons Enhanced Income Gold Producers ETF

The HORIZONS ENHANCED INCOME GOLD PRODUCERS ETF $37.00 (Toronto symbol HEP) invests in an equal-weighted portfolio of North American-listed gold mining companies. The portfolio currently holds 14 stocks, with all the top producers such as Barrick Gold and Newmont Corp. represented.
The ETF yields a high 5.0%. However, the dividend income… Read More

5 great tips for ETF investing

5 great tips for ETF investing

You will have better opportunities for success with ETF investing when you follow our tips
In 1990, ETF investing was introduced in Canada. The fund was called Toronto Index Participation Shares, and started trading on the Toronto Stock Exchange (TSX). The shares, which tracked the TSE… Read More

3 key ETF Definitions for Investors

3 key ETF Definitions for Investors

Our key ETF definitions will help you better understand ETF investing
The simplicity of investing in ETFs holds a lot of appeal for many investors. We’ve compiled a list of ETF definitions so you can determine if ETFs are right for your portfolio.

What does ETF mean?

ETF… Read More

Q: May I ask your opinion on ZWB (BMO Covered Call Canadian Banks) and HYGH (iShares Interest Rate Hedged High Yield Bond ETF)? In addition, does “covered call” offer any appreciable advantage over straight bank stocks or bank ETFs? And does the hedging of HYGH add risk or unpredictability versus the “straight” HYG? Thank you.

A: The BMO Covered Call Canadian Banks ETF, $18.62, symbol ZWB on Toronto (Units outstanding: 68.1 million; Market cap: $1.3 billion; www.bmo.com/gam), holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either… Read More