Really, really, really appreciate this video. Not only can I finally wrap my brain around what a covered call is, but you saved me from my original plan of investing in all three--ZWC, ZDV, and VDY. Now, I'm sticking with ZWC.
I personally invested in ZDV on the covid correction. It went up signifcantly since then and now I will put it in ZWC, which did not go up nearly as much since then. So non-covered call ETFs like ZDV can be useful during market corrections if you have some spare cash. This guys strategy is almost purely covered call no matter what, which is simpler and that's just fine.
Great advice for someone like me approaching retirement in another 8 years and already looking for cash flow income. I don't have access to this ETF but already accumulating shares in QYLD, and RYLD for at least a 5% of my portfolio. Thanks for sharing all your knowledge in this subject. For me it is good news and at the perfect time.
Thanks Ravi, I'm glad your finding this info useful and appreciate the growing number of comments i get similar to yours. This only motivates me to make more videos and focus on these amazing Funds. It's honestly never been a better time to be a DIY investor! Competition between fund manager and Innovation also exists in Investing. I LOVE CAPITALISM! You can either take part, or fall behind!
Yeah zwk especially was a great pickup this year . Managed to book a 10% yield on it as banks were down , but there already recovering nicely . Best and biggest banks in the U.S. all legends , can’t go wrong !
I don’t comment much on videos but I wanted to give you props for the structure and presentation. Really well done. Liked, Subscribed and Commented. The algorithm gods will take note! LOL
I have been like a deer in the headlights every time I read about CC and tried to understand how they work. I listened to your video once and, boom, it is as clear as day to me now. Thank you for being so easy to understand and having your channel available - I am subscribing and moving on to your other videos.
Great Video Adrian - 2 questions - Firstly - from your presentation you can just open say a TFSA and just load everything on the ZWC and just drip it and if you have a 9-5 still just continually acquire the ZWC and just drip it over and over etc.... Now 2nd question do you have to be with BMO to acquire the ZWC - what if your with other banks etc. but you want the ZWC etc...?
I like the way you have everything written up in your description. That's extremely helpful like for people like me who need time to think things through. Much appreciated!
you cannot look at yield only. this fund purchased Nov 1, 2017 @ $20.51 your return would be less than 3%. buying today Feb 20/2021@ a price$16.77 and does not fall over next 5 years yes you would earn 8%. is this *% a distribution or Dividend
@@PassiveIncomeInvesting That's the plan, I'm not trying to beat the TSX with these ones just get a nice consistent yield, like you said that's what they were made for.
At almost 25% ZWG:CC is the largest holding in a new ETF - ZWQT which is officially described as a "BMO Global Enhanced Income Fund ETF Series is a professionally constructed all-in-one Asset Allocation solution that provides instant diversification consisting of a basket of Enhanced Income ETFs." It will the "Core" holding in ZWQT since it is the largest holding so it appears that BMO has a lot of confidence in the fund. Remember to enter it as ZWG:CC in your tracking software.
Thanks Adrian, I've been looking at ZWC for a bit and your video essentially sealed my decision. I put $30K in and will put another $30K next month and then let it ride for the next 15 years as I set sail into retirement. Curious if you think this is the right move? I've lost too much money in the markets over the years but still swing trade a little but don't risk that much capital when I do.
Thanks for sharing your strategies with us. Much appreciated. Wondering what advise you would give to individuals just starting out with $10k or so. And how long it would take to get to $500k of a portfolio using these techniques. Thanks again for being so transparent. We appreciate the Canadian content.
Hi Adrain. Thanks again for another very informative and helpful video. I was wondering what your thoughts were on EIT.UN with its 12% yield. I love the "The Three Little Pigs" reference in your reply to Lumina's comment. We appreciate your logical and grounded approach to investing, keep up the awesome work.
lol thanks! It comes from experience. Nothing more useful than personal experience in the Investing game. EIT is one of my Favorite INCOME stocks of all time and am planning on making a video just on that fund eventually. It's one of my biggest positions, I have 25k invested there now. You can always check out my portfolio unveiling video to see my entire portfolio. th-cam.com/video/3eAMN-wLldg/w-d-xo.html
I have no mortgage but my house is worth $1.5 million. Would it be a good idea to borrow against my house any put a modest amount into this stock, especially as I can get a low interest rate these days, less than 2%?
I can't say if it would be a good idea or not, it really depends on your personal situation. On paper it looks like it is, but i would never advise somebody to borrow money to invest, as a general principle. BUT that doesn't mean its not a good idea for you, if you are comfortable with it. If my house was worth 1.5 million and it was paid off, i would sell it, invest all the money and just RENT. Which is exactly what i did last year where i sold my paid off condo and invested all the proceeds. We are super happy with our decision as the Income we make pays for not only the rent but all our living expenses with some $ left over. Along with a huge sense of freedom. Home ownership is overrated in my personal opinion but that's just me. Yes it is generally a really good long term investment but at what cost? Owning a home can be a huge hassle and very time and energy consuming. Id rather have more freedom So the decision really depends on your Lifestyle and personal situation. If you love your home and plan on staying there for a longtime, borrowing 10-20% on it to invest might be a good idea! What is your long term goal in life?
@@PassiveIncomeInvesting Good vid. Good advice. A HELOC would be best option in my opinion. Remember interest is tax deductible for funds used for investing but make sure you keep all loan accounts used for investing separate from others.
@@PassiveIncomeInvesting I'm retired but my wife has another 4-5 years. I went back to work so my brain doesn't turn to mush. We have saved well but need to start generating more income with the cash we have.
Thanks Adrian. I’ve added this etf 3 weeks ago and already received my first dividend from it. I have an idea for a video. Can you explain when we should take the profits from our TFSA in order to enjoy our extra money. Would it be best to do this in the last quarter of the year and recapture that TFSA room come the new year. Just wondering thanks Rob
Hey Rob, That is very subjective to each investor. I can't give my opinion when is the "right" time to take profits or not... and I assume you mean sell stocks that your up on to make a capital gain. Personally, I own high yield stocks in my TFSA like Split Corps and REITs and withdraw the Dividends every month. The amount i withdraw every month increases my contribution room dollar for dollar the following year. So when Jan 1st hits, I can finally transfer in new funds in my TFSA. Like I always preach, i don;t suggest buying and selling stocks to make profit, it's better just to buy and hold. Much simpler this way. Hope this helps? let me know, maybe I misunderstood your question
@@PassiveIncomeInvesting yes I mean if I’m collecting dividends which is cash in the account to withdraw not selling the stocks. So if I received $1000 dividends in my tfsa over the course of one year and just left it as cash and did not reinvest. I could pull that cash out say in November and come January as would get my $6000 plus the $1000 room in my tfsa to invest for 2021 ?
They haven’t , not only that but the dividends are slowly increasing over time . Check out the dividend history on the funds website . Now that I think about it it’s a pretty important part I didn’t mention in the video ☹️
@@PassiveIncomeInvesting its ok buddy. thx for sharing. i agree its a no brainer to me also. i will buy and hold this tommorrow as i believe it still has much room to the upside at least to the pre-pandemic levels.
I rarely look at my portfolio and haven't checked the dividend for a while it's down to 6.34% which is fine .. still getting about 1050$ a month. Can't add anymore more into that account so I'm just gonna let it ride for 25 years until a retire!
Why do you consider options to be "tricky, and not something you would do on your own?". I write my own covered calls all the time. I'm also a fan of ZWC for my TFSA, thanks.
I thought that diversification was important. Theoretically, would it be wise to hold 100% ZWC in a non-registered account and a TFSA? Or would diversification be more important? It would definitely be good having eligible dividends instead of foreign income, but I'm unsure if it would be worth the trade off.
Looks like a fund I would consider if I was a investor in the US . A good balance between growth and income . Reminds me of the ZWG etf here in Canada . 5-7% yield is actually not bad considering it’s not a covered call etf
It looks like ZWC has lowered its upcoming dividend distribution. I haven't been able to find out the reason and if this is a new trend for this ETF. Do you have any information about this? Thanks.
No info but it could happen , it’s not necessarily permanent . Call premiums are harder to get in a bull market , especially outside of the us , as option trading is less popular
I have employed a financial advisor due to past mistakes. This sounds to good to be true, especially when it is free advice. BUT, I do know something about investing & this is the most conservative low risk strategy I have ever heard of. It is not for growth but income only, which saves on capitol gains tax. As was stated, one can pay bills or invest more or both. Win , Win ,Win Question : I am fairly new at this information highway, What do you get out of this?
Hi Robert , for a beginner it sounds like you understand quite a lot ! So don’t doubt yourself . Regarding what I get out of it it’s simple : I get hundreds of positive comments and letters from people saying how this helped them tremendously and changed their lives . So I get a lot of good karma which is priceless . Also I love doing it ... I also started receiving some income from TH-cam ads and my digital product I sell on my website which you should check out 😎 thanks for your positive feedback
Great video as always! Just bought some ZWC. Thoughts on XEI VS ZDV? I wanted some exposure to dividend stocks without covered calls and currently hold XEI. Do you think it makes sense to have both ZDV AND ZWC instead or not? Thanks again
Holy crap. I've been investing in my TFSA since the crash in early 2020 (got about 11k in there at this point) and its mostly in vanguard VDY and VRE, along with a little sprinkle of REI.UN and XIC. I would love to add ZWC to my portfolio, and I get that the entire report says that the strategy is safe, however, we have yet to see it function in a downturning market over a prolonged period of time. And with a coming global market correction on the horizon due to all the damage from lockdowns, Im having a hard time deciding whether i should be adding this to the portfolio.
Adrian - I saw your video with the different ETF portfolios for the Tortoise, Beaver, etc. I'm looking to build an ETF portfolio and get a strong but safe dividend snowball going to live off the income in 10 years. My plan was to invest $300k now ($50K ROTH, $250k Taxable) into 5-6 ETFs with average starting yield of 4.5-5% and average annual dividend growth of 8-10%. I would reinvest all dividends for next 10 years. I was looking at 30%SCHD, 20% SPHD, 10% REGL, 15% QYLD, 15% JEPI, 10% USHY. How would you construct a portfolio for this scenario? Maybe you can call it the "Moderate-Risk Snowman" - Thanks !
Hi Tom, Since I'm Canadian I focus on Canadian Listed Funds and stocks. I know and own a few U.S. listed Funds like QYLD and RYLD from Global-X but I probably wouldn't be the ideal person to help build a portfolio of U.S. listed securities although you guys have definitely more choice than us! When you say annual Dividend Growth of 8-10%, i think you mean Dividend Yield?. Dividends typically grow by 1-3% a year , sometimes less and sometimes more... and sometimes they stay the same. And that's by owning them directly. With a Dividend ETF , it's even slower. Dividend Growth is extremely slow and there no chance of you finding companies or ETF's that grow their dividend 8-10% a year every year. To me it sounds like you're a 50/50 investor. 50% Income and 50% Growth. Global-X recently came out with 2 new Products which is exactly that. QYLG and XYLG which are basically the same concept as QYLD and XYLD but they only write covered calls on 50% of the portfolio. So you get the best of both worlds (Growth and Income) but at a reduced level. Me personally ,Ii go 100% Income. What a lot of GROWTH Investors fail to realize is that an INCOME strategy can also lead to growth if you're re-investing the Dividend Every month with the DRIP. Instead of relying on the stock price appreciation, you can simply watch the high dividends compound and get growth that way. Maybe you just inspired a new video!
@@PassiveIncomeInvesting Actually my core holding, SCHD, has grown its dividend by 11% average per year. This is how I get the snowball effect when you reinvest dividends. Thanks for your input.
Hey Adrian. Really loving the channel. This might sound weird, but with all the stresses in the world today, I really look forward to your videos. I hold 207 shares of ZWC and adding more over time. I really like the BMO ETFs. P.S. Did you notice that HPF massively cut their distribution? I believe you hold this stock. I sold all of mine when I saw the cut.
Not weird at all, I'm honored actually :) Yes i am well aware HPF cut their dividend 66% . I knew a reduction was coming as no matter how good of a manager you are sustaining a 18%++ dividend is impossible no matter how many Covered Calls you sell hehehe. I was surprised that it was a 66% cut. I wss expecting 33% or maybe 50%. Quite unfortunate but on the positive side, the ETF STILL pays out a decent dividend. And with the cut, and recent oil recovery, the ETF stock price should rise nicely. NXF would be top choice if ever you want more yield.
Great videos however I am wondering about the long term of your portfolio. The trend on many of your investments is downward so over time the value of them would go lower. Curious on your thoughts on this?
That’s one of the most common questions I get which I try to address in some videos in snippets here and there but I’m planning to make a video just covering this question soon so stay tuned ... the quick answer : I’m not concerned with share prices and trends because I’m an income investor that doesn’t rely on share price trends ... whether good or bad or flat
@@PassiveIncomeInvesting thanks for the response, I'll keep an eye out for the video for sure! I guess my concern is if you're reinvesting into the same underlying stocks that the value over time of the entire portfolio would drop if the trend is downwards.
Yes you are my friend ! something very important . The amount is not the Important part it’s what it is relating to the share price . Vdy is 33$ a share whereas zwc is 16.50$ . The yield% is : the annual dividend , divided by the share price , times 100 . Pull out that calculator like your back in grade 6 and do the calculations 😀
@@PassiveIncomeInvesting haha after some reading and basic math calculations I see the error in my ways. Dividend Yield is more important than dividend rate. Cheers
Hi. I watched multiple your movies and in my opinion you pass amazing info and advices to people. I would love to invest in Canadian stock but I live in US. Do you know if in States I can invest in Canadian stock and how? What is the best online broker for it? Thank you.
Just bought ZWC. You really need to amend this video to correct your comments about ROC being tax free. It is more accurately tax deferred as it reduces your cost base and you will pay taxes as capital gains when you sell.
It provides good dividend but I much rather invest in TD,BMO or enbridge directly because this ETF practically had no growth in last 5 years and I was not able to find any record of dividend growth either.
ZWC ETF Facts sheet shows MER of 0.72% and TER of 0.29%. Total ETF expense is therefore 1.01% "As of June 30, 2020, the ETF's expenses were 1.01% of its value. This equals $10.10 for every $1,000 invested." Just something to keep in mind.
What are your thoughts if I were to put 30K into a non registered margin account (requiring 30% down and buying 90k of ZWC .. pretty bullet proof way to enhance yields over a 5 to 10 year period, no?
I would personally never invest in a MARGIN account. I would never borrow money to invest. But that is just me. If you want higher Yield id rather invest in a Split Fund and not use margin. See my SPLT Fund videos: th-cam.com/video/rdlNpPsipTU/w-d-xo.html th-cam.com/video/lhxJv8gJrfk/w-d-xo.html
I have trouble viewing the covered call ETFs as having no risk. I have been selling covered calls on my own stocks for years, and when there is a large correction or a company falls, I generally don't sell any new calls and wait until the stock has returned to close to my average cost base. Take March 2020 for example, stocks fell dramatically in a short period, the existing calls are far out of the money and will expire worthless. However, BMO will continue to open new calls at the lower price. The market recovered fairly fast, so did BMO have to sell a bunch of stocks at a price lower than the ACB, which would erode NAV? This is partly mitigated by BMO only selling calls on 50% of the portfolio at a time.
Yes they do. Not only BMO ones but all the Covered Call ETFs I have come across give a substantial portion of their dividend as "Return of capital". Split share funds and other Closed-end funds... even REITs give a % of their income as Return of Capital. You can check for each one by looking at the funds "Tax Information" . Its usually somewhere on their website under the "INVESTORS" section
@@PassiveIncomeInvesting that's great to hear. I found to income funds that I wanted your opinion on for my RRSP. They are crf (I believe you have clm) and oxlc. They have big US dividends.
@@PassiveIncomeInvesting I don't think you should say that the return of capital portion of the distribution is non-taxable - it effectively reduces the cost base and will be taxable as a capital gain in the future when the investment is sold
What would be the worst-case scenario with owning this ETF? And how realistic is that scenario? Thank you in advance and keep up the awesome work, I love your content! And congrats on getting your family FIREd :)
Thanks for the encouragement! If you BUY and HOLD it? The worst case scenario is the fact that you didn't buy more shares ! I can;t imagine any "worse case scenario" with this ETF. For people that are hesitant the #1 thing i tell them is to remember that you're investing in the Companies inside the ETF. And the companies in this are are Canadian GEMS. That is the point of these ETFs they put a higher income SPIN on solid, Blue Chip stocks. They are very safe and pretty much follows the TSX in General.
@@PassiveIncomeInvesting Thank you very much for your reply! I don't know if you're going to do a Q&A video soon (or ever :)), but it would be very interesting to hear your overall thoughts on risk and risk tolerance, especially for a FIRE family like yours. For example, what kind of precautions have you guys taken in case your dividend income (or portfolio value) halves in the next 10 years? Is there any strategy or a breaking point/threshold at which you'd consider returning to work? Will you be able to return to work after being inactive for 10 years? I'm sorry if my questions are all over the place and if they sound negative, but I'm just thinking it's smart to be aware of all the risks and strategies for handling those risks. Anyways, I'm sure you got my point :) Thanks again! Cheers
Thanks for the kind words. You have some good questions that I'm sure others are thinking about. Yes we are planning to eventually hold a live Q&A video where you will be able to ask us anything. Let me start off by saying that I am still employed. I am fortunate to have a lot of flexibility since I work in IT and can work at home whenever I want (so it's pretty much all the time). Although I don't NEED to work as our Passive Income more than covers all our living expenses, I chose to because i still like my job and am investing my entire paycheck every month to build my Main Income Portfolio quickly. In terms of precautions, the main thing I have done this year is to streamline and simplify my portfolio. I got rid a lot of riskier, smaller and higher risk stocks. Defining RISK is key to answer your question. Stock price fluctuation means nothing to me, up or down... I don't care. This is the luxury you have as a Passive, BUY and HOLD investor. RISK for me, is Dividend Reductions or Suspension. As I learned this year, most of this risk comes from individual Companies and stocks, especially smaller stocks who quickly reduce or suspend their Dividend altogether at the first sign of danger. Which is why I sold a lot of them off and am now focusing on Funds like ETFs as they are designed to endure stock market fluctuations since they hold many stocks. Especially Covered Call ETFs, they have been my most consistent performers and most even performed BETTER during volatility, just another reason why I love them. So to answer your question, I cannot see a scenario ever where i would lose let's say 50% of my income during the next stock market crash. Maybe I will TEMPORARILY lose 10-20% of the income but I can live with that easily. And the more i grow my fund, the better off I will be. The best strategy for handling what you call RISK, is all relative and different for different investors. It depends on your style and personal situation. Experience is another important factor to build up your confidence to know your strategy is the best one. And the March-April crash this year taught me that my strategy works but i just need to perfect it. I invest primarily in ETFs or Funds that hold Industry Leaders, so Big CAP Blue Chip stocks. Also, about 25% of my portfolio is Real Estate, a defensive sector. One thing I want to point out is that my main portfolio does NOT include our 2 RRSP accounts, which are compounding every month and they are worth about 250k. Another important factor is that we have no Debts and no Kids. Safety and consistency are very critical to my overall strategy Check out this video where I discuss my strategy in detail: th-cam.com/video/1PaSyi3U4t4/w-d-xo.html
@@PassiveIncomeInvesting That was very helpful, thank you Adrian! I have already watched that video, but I'll also make sure to watch all your other videos, because I have some more questions - so it wouldn't be a bad idea to check if you have already answered them in another video :) Also, looking forward to the Q&A session! Cheers
Thanks Adrian, I’m wondering about “return of capital”. Is this simply the fund giving us some of our own money back to keep the dividend yield up? Money going from your right pocket to your left pocket, so to speak? Likely why that portion isn’t taxed?
Hello Adrian! Really enjoying your videos! What makes a dividend yield go down? Is the yield updated every month, quarter, year? I see that zwc now only offers a 7.22% yield, was just wondering why it would've gone down. Thanks!!
They changed their dividend this month from 11 cents to 10 cents . But it might be temporary. Dividend changes on cc funds can be for a number of reasons , like not enough option income , which is more common during a bull market
Do you know about xdiv? My friend told me about zwc recently though, maybe it's better for me.. Is it on IBKR? I heard etfs are free on interactive. Oh yeah, thanks for sharing.
I just came out of my bank and spoke to a financial advisor. I mentioned ZWC and he made it seem like he didn't know what I was talking about. I have 10 grand to invest and I am wondering what is the best way to take that money and put it to work. Should it be through my bank? Wealthsimple? Something else maybe? I should add that this person that I spoke to was already talking about putting me into a profile and/or talking about low medium risk.
I am building a post retirement portfolio with ZWC, ZWE and ZWS. Since these are all blue chip stocks with downside protection, is there a need to diversify with bonds? If so, what safe bonds or bond ETFs can you suggest?
Another great video - thanks Adrian. I actually bought a lot of ZWC units in November 2020, and the dividend yield for the first few months was 8%. Unfortunately, in mid-2021 BMO decided to reduce the dividend yield payment by 1 cent (from 11 cents to 10 cents per month), which had the effect of lowering the dividend yield to roughly 7.3%. I still have my ZWC units, and the stock price on the units has gone up by about 14%. I'm tempted to sell my ZWC units now, but I'm not anxious to trigger the capital gains and pay tax on those gains.
Do you wonder at times if the TFSA will ever stop increasing the contribution limit? At the moment it is at 75,500$ For example, it will stop increasing the limit at 85,000$?
Just a hypothetical, but what are your thoughts on potentially just taking your entire maxed TFSA and putting it all in ZWC and setting up a DRIP so it compounds like crazy with the high yields?
@@PassiveIncomeInvesting Yeah that's what I was thinking too. Was just wondering your thoughts were on the hypothetical since you seem quite bullish on these high yield Canadian covered call ETFs and split share funds.
For sure , but I still wouldn’t put all my eggs in that basket . I like to have a piece of everything in different parts of the world . Especially the advanced economies .
Passive Income Investing I've watched a few of your videos in the past week. I think I understand a bit better what you're doing. Would it be a reasonable summary of understanding to say that you have about $900k in dividend portfolios, with a yield of 9% or 10%. Stock appreciation is minimal due to focusing on dividends etc. Spread over a few accounts for tax reasons. Maybe 1/3 or so in covered call dividend stocks. And the rest in various individual stocks and EFTs. hope I'm getting there with understanding it
Number of shares is irrelevant, just don’t buy them a few at a time . There is a fee whenever you buy shares , so my advice is to save up at least 1000$ before you invest in a stock . Personally I invest about 2500$ a pop . The important thing is to start as soon as possible
Honestly each person has a different tolerance for fees . Some people don’t k is that back in the day td charges 30$ a transaction lol . We’re spoiled now …
Really, really, really appreciate this video. Not only can I finally wrap my brain around what a covered call is, but you saved me from my original plan of investing in all three--ZWC, ZDV, and VDY. Now, I'm sticking with ZWC.
I personally invested in ZDV on the covid correction. It went up signifcantly since then and now I will put it in ZWC, which did not go up nearly as much since then. So non-covered call ETFs like ZDV can be useful during market corrections if you have some spare cash. This guys strategy is almost purely covered call no matter what, which is simpler and that's just fine.
Zwc also went on sale , if you would have invested you would have booked a 9% yield
Great advice for someone like me approaching retirement in another 8 years and already looking for cash flow income. I don't have access to this ETF but already accumulating shares in QYLD, and RYLD for at least a 5% of my portfolio. Thanks for sharing all your knowledge in this subject. For me it is good news and at the perfect time.
Thanks for putting these videos together Adrian! I feel like I found a hidden gem in your channel. Keep it up, and stay healthy. Happy Holidays!
Thanks Ravi, I'm glad your finding this info useful and appreciate the growing number of comments i get similar to yours. This only motivates me to make more videos and focus on these amazing Funds. It's honestly never been a better time to be a DIY investor! Competition between fund manager and Innovation also exists in Investing. I LOVE CAPITALISM! You can either take part, or fall behind!
Such good youtube. Only 3.8k subscribers. Very helpful . Thanks. Hope more people see it
Hey Adrian, another great video. I love the BMO etf . Looking forward to see more video of the BMO Covered Call ETF family.
More to come!
Long ZWC + ZWK got these in my RRSP, RESP. Love it!
Yeah zwk especially was a great pickup this year . Managed to book a 10% yield on it as banks were down , but there already recovering nicely . Best and biggest banks in the U.S. all legends , can’t go wrong !
Love your calm & collected style. Thank you for your very, very informative videos. Cheers!
I don’t comment much on videos but I wanted to give you props for the structure and presentation. Really well done. Liked, Subscribed and Commented. The algorithm gods will take note! LOL
this channel is very undervalued thank you again brother for posting this vid
I love anything that is UNDERVALUED, especially Stocks! :)
Come January 1, 2021 (with $6,000 new contribution room in my TFSA), I will buy some ZWC.
YES! my new favorite part about New Year's now is getting more TFSA room!!!
I have been like a deer in the headlights every time I read about CC and tried to understand how they work. I listened to your video once and, boom, it is as clear as day to me now. Thank you for being so easy to understand and having your channel available - I am subscribing and moving on to your other videos.
GreAt!! I got other ones on explaining how covered calls work … I even have a playlist that covered them , check em out! You’ll be a pro
Great Video Adrian - 2 questions - Firstly - from your presentation you can just open say a TFSA and just load everything on the ZWC and just drip it and if you have a 9-5 still just continually acquire the ZWC and just drip it over and over etc.... Now 2nd question do you have to be with BMO to acquire the ZWC - what if your with other banks etc. but you want the ZWC etc...?
ZWC is a publicly listed ETF you can buy it with any Broker
Adding it to my portfolio. Thanks for the amazing explanation as always!!
Great video! Covers every detail for decision making. Strategy, portfolio, comparisons, Tax implications. Thank you!
I like the way you have everything written up in your description. That's extremely helpful like for people like me who need time to think things through. Much appreciated!
Thank you for a great video, I was so confused with all the choices of dividend stocks, now ZWC is all I need, Thank you again 👌👍👏
How is the zwc working out for you?
Hey Adrian!! Another fantastic video!! I bought ZWC and ZWK back in July thanks to your great recommendation!! Time to load up on some more ZWC!!!
Thanks Paul, enjoy the easy Passive Income brother.
which is better ZWC or ZWK?
I can’t say one is bette than the other that’s not the right way of looking at it , they both invest In different companies , they are both good !
you cannot look at yield only. this fund purchased Nov 1, 2017 @ $20.51 your return would be less than 3%. buying today Feb 20/2021@ a price$16.77 and does not fall over next 5 years yes you would earn 8%. is this *% a distribution or Dividend
Ended up buying a bunch of the BMO etfs, ZWC is my biggest holding followed by ZWU. Will continue to add more over the months.
Just HOLD them!
@@PassiveIncomeInvesting That's the plan, I'm not trying to beat the TSX with these ones just get a nice consistent yield, like you said that's what they were made for.
@@PassiveIncomeInvesting are the management fees already factored out of the distribution?
Yup
@@PassiveIncomeInvesting thanks. That’s what I figured I just couldn’t seem to confirm.
Larry Berman ( the manager of Zwc ) is a very well respected money manager.
Thank you for detailed explanation. I am just starting with RRSP on WealthSimple and I might put 2/3 of my current amount between ZWC and VGRO
I am a beginner of ETFs. I was looking for a stable dividend ETFs, so ZWC will be my first one . Thank you for the all details infomation.
Nice video, good content. I really appreciate your work. Thanks 👍
Thank man appreciate that. More to come !
Excellent find 🙌 i am goinng to look into it more and possibly purchase some on DRIP
At almost 25% ZWG:CC is the largest holding in a new ETF - ZWQT which is officially described as a "BMO Global Enhanced Income Fund ETF Series is a professionally constructed all-in-one Asset Allocation solution that provides instant diversification consisting of a basket of Enhanced Income ETFs." It will the "Core" holding in ZWQT since it is the largest holding so it appears that BMO has a lot of confidence in the fund. Remember to enter it as ZWG:CC in your tracking software.
If your looking for monthly income ZWC, ZWU, ZWB are all excellent
Thanks Adrian, I've been looking at ZWC for a bit and your video essentially sealed my decision. I put $30K in and will put another $30K next month and then let it ride for the next 15 years as I set sail into retirement. Curious if you think this is the right move? I've lost too much money in the markets over the years but still swing trade a little but don't risk that much capital when I do.
Can’t go wrong with Zwu but for 15 years consider hdiv
@@PassiveIncomeInvesting Will do, thank you!
ZWC or EIT.UN Hi Adrian, in your opinion, what’s better bang for the buck? Thanks again, great video!
can you make a video on how to effectively use rrsp once tfsa is fully utilised
The short answer is to also fill it up ! An rrsp video might be coming later on .... so stay tuned !
Thanks for sharing your strategies with us. Much appreciated. Wondering what advise you would give to individuals just starting out with $10k or so. And how long it would take to get to $500k of a portfolio using these techniques. Thanks again for being so transparent. We appreciate the Canadian content.
This should help:
th-cam.com/video/SewM4t6eVBQ/w-d-xo.html
@@PassiveIncomeInvesting Thank you for getting back to me promptly.
so simple so nicely explained - thank u
Great information, thanks for explaining the tax difference between the types of distributions.
Hi Adrain. Thanks again for another very informative and helpful video. I was wondering what your thoughts were on EIT.UN with its 12% yield. I love the "The Three Little Pigs" reference in your reply to Lumina's comment. We appreciate your logical and grounded approach to investing, keep up the awesome work.
lol thanks! It comes from experience. Nothing more useful than personal experience in the Investing game.
EIT is one of my Favorite INCOME stocks of all time and am planning on making a video just on that fund eventually.
It's one of my biggest positions, I have 25k invested there now. You can always check out my portfolio unveiling video to see my entire portfolio.
th-cam.com/video/3eAMN-wLldg/w-d-xo.html
I have no mortgage but my house is worth $1.5 million. Would it be a good idea to borrow against my house any put a modest amount into this stock, especially as I can get a low interest rate these days, less than 2%?
I can't say if it would be a good idea or not, it really depends on your personal situation. On paper it looks like it is, but i would never advise somebody to borrow money to invest, as a general principle. BUT that doesn't mean its not a good idea for you, if you are comfortable with it.
If my house was worth 1.5 million and it was paid off, i would sell it, invest all the money and just RENT. Which is exactly what i did last year where i sold my paid off condo and invested all the proceeds. We are super happy with our decision as the Income we make pays for not only the rent but all our living expenses with some $ left over. Along with a huge sense of freedom. Home ownership is overrated in my personal opinion but that's just me. Yes it is generally a really good long term investment but at what cost? Owning a home can be a huge hassle and very time and energy consuming. Id rather have more freedom
So the decision really depends on your Lifestyle and personal situation.
If you love your home and plan on staying there for a longtime, borrowing 10-20% on it to invest might be a good idea! What is your long term goal in life?
@@PassiveIncomeInvesting Good vid. Good advice. A HELOC would be best option in my opinion. Remember interest is tax deductible for funds used for investing but make sure you keep all loan accounts used for investing separate from others.
@@PassiveIncomeInvesting
I'm retired but my wife has another 4-5 years. I went back to work so my brain doesn't turn to mush. We have saved well but need to start generating more income with the cash we have.
So basically a lot of blue chips, diversified but you get a better yield return.. very interesting
Thanks you Very much for the great cover of this ETF !
Does return of capital not depreciate the value of the etf over the longer term?
Thanks for the video Adrian.
Good tips. Thanks for all your videos👍
Thanks Adrian. I’ve added this etf 3 weeks ago and already received my first dividend from it. I have an idea for a video. Can you explain when we should take the profits from our TFSA in order to enjoy our extra money. Would it be best to do this in the last quarter of the year and recapture that TFSA room come the new year. Just wondering thanks Rob
Hey Rob, That is very subjective to each investor. I can't give my opinion when is the "right" time to take profits or not... and I assume you mean sell stocks that your up on to make a capital gain.
Personally, I own high yield stocks in my TFSA like Split Corps and REITs and withdraw the Dividends every month. The amount i withdraw every month increases my contribution room dollar for dollar the following year. So when Jan 1st hits, I can finally transfer in new funds in my TFSA. Like I always preach, i don;t suggest buying and selling stocks to make profit, it's better just to buy and hold. Much simpler this way.
Hope this helps?
let me know, maybe I misunderstood your question
@@PassiveIncomeInvesting yes I mean if I’m collecting dividends which is cash in the account to withdraw not selling the stocks. So if I received $1000 dividends in my tfsa over the course of one year and just left it as cash and did not reinvest. I could pull that cash out say in November and come January as would get my $6000 plus the $1000 room in my tfsa to invest for 2021 ?
great info . one of your best vid so far imo. just one thing, do you know if they ever missed a div payment? thx
They haven’t , not only that but the dividends are slowly increasing over time . Check out the dividend history on the funds website . Now that I think about it it’s a pretty important part I didn’t mention in the video ☹️
@@PassiveIncomeInvesting its ok buddy. thx for sharing. i agree its a no brainer to me also. i will buy and hold this tommorrow as i believe it still has much room to the upside at least to the pre-pandemic levels.
Yea although it has recovered substantially there is still room for growth . But the purpose of this fund is the income
Great find! Glad I found your channel. Now subscribed! Thx
Thanks and welcome
As of Dec 22/21 this ETF is at $18.90.
Nice appreciation in just over 1 year.
Keep in mind it’s not designed for appreciation, it’s designed for income
Great video!!!!!!Thanks for sharing!!!!
Thanks a lot 🙏 Your channel is a great source of information 🤓
Glad you think so! More to come :)
I rarely look at my portfolio and haven't checked the dividend for a while it's down to 6.34% which is fine .. still getting about 1050$ a month. Can't add anymore more into that account so I'm just gonna let it ride for 25 years until a retire!
That’s the true attitude of a passive income investor! 👌
Why do you consider options to be "tricky, and not something you would do on your own?". I write my own covered calls all the time. I'm also a fan of ZWC for my TFSA, thanks.
its time and effort. and options is more advanced. i am all about being "Passive" . Of course you can do it yourself but id rather let the pros do it.
I thought that diversification was important. Theoretically, would it be wise to hold 100% ZWC in a non-registered account and a TFSA? Or would diversification be more important? It would definitely be good having eligible dividends instead of foreign income, but I'm unsure if it would be worth the trade off.
Diversification is more important in my opinion
Thanks for Great sharing.
What do you think of FGD? It yields 5.8% and grows its dividend 5 - 7% per year. Looks good for long term dividend growth investor
Looks like a fund I would consider if I was a investor in the US . A good balance between growth and income . Reminds me of the ZWG etf here in Canada . 5-7% yield is actually not bad considering it’s not a covered call etf
It looks like ZWC has lowered its upcoming dividend distribution. I haven't been able to find out the reason and if this is a new trend for this ETF. Do you have any information about this? Thanks.
No info but it could happen , it’s not necessarily permanent . Call premiums are harder to get in a bull market , especially outside of the us , as option trading is less popular
Thanks for the information!
just subscribed! great content. I am just starting up myself!
Welcome aboard!
I have employed a financial advisor due to past mistakes. This sounds to good to be true, especially when it is free advice. BUT, I do know something about investing & this is the most conservative low risk strategy I have ever heard of. It is not for growth but income only, which saves on capitol gains tax. As was stated, one can pay bills or invest more or both. Win , Win ,Win
Question : I am fairly new at this information highway, What do you get out of this?
Hi Robert , for a beginner it sounds like you understand quite a lot ! So don’t doubt yourself . Regarding what I get out of it it’s simple : I get hundreds of positive comments and letters from people saying how this helped them tremendously and changed their lives . So I get a lot of good karma which is priceless . Also I love doing it ... I also started receiving some income from TH-cam ads and my digital product I sell on my website which you should check out 😎 thanks for your positive feedback
Great video as always! Just bought some ZWC.
Thoughts on XEI VS ZDV? I wanted some exposure to dividend stocks without covered calls and currently hold XEI. Do you think it makes sense to have both ZDV AND ZWC instead or not?
Thanks again
Very similar … you can have whatever combos you want ! That’s the beauty of diy investing 👍
great video thanks a lot would anyone know if this etf has an expiring date like most income I'm new at this so I'm not sure
Holy crap. I've been investing in my TFSA since the crash in early 2020 (got about 11k in there at this point) and its mostly in vanguard VDY and VRE, along with a little sprinkle of REI.UN and XIC. I would love to add ZWC to my portfolio, and I get that the entire report says that the strategy is safe, however, we have yet to see it function in a downturning market over a prolonged period of time. And with a coming global market correction on the horizon due to all the damage from lockdowns, Im having a hard time deciding whether i should be adding this to the portfolio.
Cc ETF’s thrive in downturns , so let me try to make it easy for you , yes it’s a good idea
@@PassiveIncomeInvesting Thank you for the quick and concise reply!
Great Video! Thanks!!
Adrian - I saw your video with the different ETF portfolios for the Tortoise, Beaver, etc. I'm looking to build an ETF portfolio and get a strong but safe dividend snowball going to live off the income in 10 years. My plan was to invest $300k now ($50K ROTH, $250k Taxable) into 5-6 ETFs with average starting yield of 4.5-5% and average annual dividend growth of 8-10%. I would reinvest all dividends for next 10 years. I was looking at 30%SCHD, 20% SPHD, 10% REGL, 15% QYLD, 15% JEPI, 10% USHY. How would you construct a portfolio for this scenario? Maybe you can call it the "Moderate-Risk Snowman" - Thanks !
Hi Tom, Since I'm Canadian I focus on Canadian Listed Funds and stocks. I know and own a few U.S. listed Funds like QYLD and RYLD from Global-X but I probably wouldn't be the ideal person to help build a portfolio of U.S. listed securities although you guys have definitely more choice than us!
When you say annual Dividend Growth of 8-10%, i think you mean Dividend Yield?. Dividends typically grow by 1-3% a year , sometimes less and sometimes more... and sometimes they stay the same. And that's by owning them directly. With a Dividend ETF , it's even slower. Dividend Growth is extremely slow and there no chance of you finding companies or ETF's that grow their dividend 8-10% a year every year.
To me it sounds like you're a 50/50 investor. 50% Income and 50% Growth.
Global-X recently came out with 2 new Products which is exactly that. QYLG and XYLG which are basically the same concept as QYLD and XYLD but they only write covered calls on 50% of the portfolio. So you get the best of both worlds (Growth and Income) but at a reduced level.
Me personally ,Ii go 100% Income. What a lot of GROWTH Investors fail to realize is that an INCOME strategy can also lead to growth if you're re-investing the Dividend Every month with the DRIP. Instead of relying on the stock price appreciation, you can simply watch the high dividends compound and get growth that way. Maybe you just inspired a new video!
@@PassiveIncomeInvesting Actually my core holding, SCHD, has grown its dividend by 11% average per year. This is how I get the snowball effect when you reinvest dividends. Thanks for your input.
Hey Adrian. Really loving the channel. This might sound weird, but with all the stresses in the world today, I really look forward to your videos. I hold 207 shares of ZWC and adding more over time. I really like the BMO ETFs. P.S. Did you notice that HPF massively cut their distribution? I believe you hold this stock. I sold all of mine when I saw the cut.
Not weird at all, I'm honored actually :)
Yes i am well aware HPF cut their dividend 66% . I knew a reduction was coming as no matter how good of a manager you are sustaining a 18%++ dividend is impossible no matter how many Covered Calls you sell hehehe.
I was surprised that it was a 66% cut. I wss expecting 33% or maybe 50%. Quite unfortunate but on the positive side, the ETF STILL pays out a decent dividend. And with the cut, and recent oil recovery, the ETF stock price should rise nicely.
NXF would be top choice if ever you want more yield.
@@PassiveIncomeInvesting so it is going down to 0.01?
@@PassiveIncomeInvesting
Would it be a good idea to sell hpf and buy eit.un right now or hold and do you think the dividend will rise again?
Great video! But what are the negatives? Should talk abt both pros and cons.
Watch my covered call video 😎
Great videos however I am wondering about the long term of your portfolio. The trend on many of your investments is downward so over time the value of them would go lower. Curious on your thoughts on this?
That’s one of the most common questions I get which I try to address in some videos in snippets here and there but I’m planning to make a video just covering this question soon so stay tuned ... the quick answer : I’m not concerned with share prices and trends because I’m an income investor that doesn’t rely on share price trends ... whether good or bad or flat
@@PassiveIncomeInvesting thanks for the response, I'll keep an eye out for the video for sure!
I guess my concern is if you're reinvesting into the same underlying stocks that the value over time of the entire portfolio would drop if the trend is downwards.
Adrian, VDY pays 16 cents per share a month and ZWC is only 11 cents a month. Am I missing something?
Yes you are my friend ! something very important . The amount is not the Important part it’s what it is relating to the share price . Vdy is 33$ a share whereas zwc is 16.50$ . The yield% is : the annual dividend , divided by the share price , times 100 . Pull out that calculator like your back in grade 6 and do the calculations 😀
@@PassiveIncomeInvesting haha after some reading and basic math calculations I see the error in my ways. Dividend Yield is more important than dividend rate. Cheers
Hi. I watched multiple your movies and in my opinion you pass amazing info and advices to people. I would love to invest in Canadian stock but I live in US. Do you know if in States I can invest in Canadian stock and how? What is the best online broker for it? Thank you.
I would stick to us listed funds ! I made a recent video on us ETF’s ... have you seen it ?
Can you please do more Canadian dividend ETFs?
I got only one etf for canadian market and this is it 😊😄👌
Time to buy, I think, soon it will probably reach the before pandemic value. What do you think ?
I think it will pass it soon enough , cc ETF’s are much slower to recover due to the covered calls , so make sure to keep that in mind
@@PassiveIncomeInvesting Which growth dividend long term safe ETF are you recomanding me at a decent price now ? ( If there is ;) )
I have a monthly video series called stock picks of the month 😎
Just bought ZWC. You really need to amend this video to correct your comments about ROC being tax free. It is more accurately tax deferred as it reduces your cost base and you will pay taxes as capital gains when you sell.
th-cam.com/video/fMzf4G4WV5Q/w-d-xo.html
Well explained 👏 👌 thank you 😊
It provides good dividend but I much rather invest in TD,BMO or enbridge directly because this ETF practically had no growth in last 5 years and I was not able to find any record of dividend growth either.
Growth is not the point of this etf , it’s consistent and high passive Income .this channel Is about income Investing
ZWC ETF Facts sheet shows MER of 0.72% and TER of 0.29%. Total ETF expense is therefore 1.01% "As of June 30, 2020, the ETF's expenses were 1.01% of its value. This equals $10.10 for every $1,000 invested." Just something to keep in mind.
Definitely not on my mind ...
What are your thoughts if I were to put 30K into a non registered margin account (requiring 30% down and buying 90k of ZWC .. pretty bullet proof way to enhance yields over a 5 to 10 year period, no?
I would personally never invest in a MARGIN account. I would never borrow money to invest. But that is just me.
If you want higher Yield id rather invest in a Split Fund and not use margin. See my SPLT Fund videos:
th-cam.com/video/rdlNpPsipTU/w-d-xo.html
th-cam.com/video/lhxJv8gJrfk/w-d-xo.html
I have trouble viewing the covered call ETFs as having no risk.
I have been selling covered calls on my own stocks for years, and when there is a large correction or a company falls, I generally don't sell any new calls and wait until the stock has returned to close to my average cost base.
Take March 2020 for example, stocks fell dramatically in a short period, the existing calls are far out of the money and will expire worthless. However, BMO will continue to open new calls at the lower price. The market recovered fairly fast, so did BMO have to sell a bunch of stocks at a price lower than the ACB, which would erode NAV? This is partly mitigated by BMO only selling calls on 50% of the portfolio at a time.
Hey Adrian.... Another great video! Do all the bmo covered calls share the same tax benefits or just zwc?
Yes they do. Not only BMO ones but all the Covered Call ETFs I have come across give a substantial portion of their dividend as "Return of capital". Split share funds and other Closed-end funds... even REITs give a % of their income as Return of Capital. You can check for each one by looking at the funds "Tax Information" . Its usually somewhere on their website under the "INVESTORS" section
@@PassiveIncomeInvesting that's great to hear. I found to income funds that I wanted your opinion on for my RRSP. They are crf (I believe you have clm) and oxlc. They have big US dividends.
@@PassiveIncomeInvesting I don't think you should say that the return of capital portion of the distribution is non-taxable - it effectively reduces the cost base and will be taxable as a capital gain in the future when the investment is sold
There good ! Especially in an rrsp , no 15% tax
That’s true , but I did specify that the income is non- taxable .
Another great video. One question, is there a US equivalent or similar to ZWC for us subscribers here in the USA? Thank you!
Sorry haven’t found one for Canada stocks
I am holding zwk in my dividend portfolio 👍
What would be the worst-case scenario with owning this ETF? And how realistic is that scenario? Thank you in advance and keep up the awesome work, I love your content! And congrats on getting your family FIREd :)
Thanks for the encouragement!
If you BUY and HOLD it? The worst case scenario is the fact that you didn't buy more shares !
I can;t imagine any "worse case scenario" with this ETF.
For people that are hesitant the #1 thing i tell them is to remember that you're investing in the Companies inside the ETF. And the companies in this are are Canadian GEMS. That is the point of these ETFs they put a higher income SPIN on solid, Blue Chip stocks. They are very safe and pretty much follows the TSX in General.
@@PassiveIncomeInvesting Thank you very much for your reply! I don't know if you're going to do a Q&A video soon (or ever :)), but it would be very interesting to hear your overall thoughts on risk and risk tolerance, especially for a FIRE family like yours. For example, what kind of precautions have you guys taken in case your dividend income (or portfolio value) halves in the next 10 years? Is there any strategy or a breaking point/threshold at which you'd consider returning to work? Will you be able to return to work after being inactive for 10 years?
I'm sorry if my questions are all over the place and if they sound negative, but I'm just thinking it's smart to be aware of all the risks and strategies for handling those risks. Anyways, I'm sure you got my point :) Thanks again! Cheers
Thanks for the kind words. You have some good questions that I'm sure others are thinking about.
Yes we are planning to eventually hold a live Q&A video where you will be able to ask us anything.
Let me start off by saying that I am still employed. I am fortunate to have a lot of flexibility since I work in IT and can work at home whenever I want (so it's pretty much all the time). Although I don't NEED to work as our Passive Income more than covers all our living expenses, I chose to because i still like my job and am investing my entire paycheck every month to build my Main Income Portfolio quickly.
In terms of precautions, the main thing I have done this year is to streamline and simplify my portfolio. I got rid a lot of riskier, smaller and higher risk stocks. Defining RISK is key to answer your question. Stock price fluctuation means nothing to me, up or down... I don't care. This is the luxury you have as a Passive, BUY and HOLD investor.
RISK for me, is Dividend Reductions or Suspension. As I learned this year, most of this risk comes from individual Companies and stocks, especially smaller stocks who quickly reduce or suspend their Dividend altogether at the first sign of danger. Which is why I sold a lot of them off and am now focusing on Funds like ETFs as they are designed to endure stock market fluctuations since they hold many stocks. Especially Covered Call ETFs, they have been my most consistent performers and most even performed BETTER during volatility, just another reason why I love them.
So to answer your question, I cannot see a scenario ever where i would lose let's say 50% of my income during the next stock market crash. Maybe I will TEMPORARILY lose 10-20% of the income but I can live with that easily. And the more i grow my fund, the better off I will be.
The best strategy for handling what you call RISK, is all relative and different for different investors. It depends on your style and personal situation. Experience is another important factor to build up your confidence to know your strategy is the best one. And the March-April crash this year taught me that my strategy works but i just need to perfect it. I invest primarily in ETFs or Funds that hold Industry Leaders, so Big CAP Blue Chip stocks. Also, about 25% of my portfolio is Real Estate, a defensive sector.
One thing I want to point out is that my main portfolio does NOT include our 2 RRSP accounts, which are compounding every month and they are worth about 250k. Another important factor is that we have no Debts and no Kids.
Safety and consistency are very critical to my overall strategy
Check out this video where I discuss my strategy in detail:
th-cam.com/video/1PaSyi3U4t4/w-d-xo.html
@@PassiveIncomeInvesting That was very helpful, thank you Adrian! I have already watched that video, but I'll also make sure to watch all your other videos, because I have some more questions - so it wouldn't be a bad idea to check if you have already answered them in another video :)
Also, looking forward to the Q&A session! Cheers
Thank you. Learning so much. 👍👍
Thanks Adrian, I’m wondering about “return of capital”. Is this simply the fund giving us some of our own money back to keep the dividend yield up? Money going from your right pocket to your left pocket, so to speak? Likely why that portion isn’t taxed?
Watch my roc videos please , I have 2 of them
@@PassiveIncomeInvesting I will, thanks .
Zero chance of losing anymoney? Y sure about that. What if those shares go down to $60?
Nice video! subscribed and liked :)
Thanks for the sub!
No option chain to sell a cash secure out to enter the trade.
What is the stock/bond ratio of ZWC?
Watched and liked, thanks!
Nice video
Hello Adrian! Really enjoying your videos! What makes a dividend yield go down? Is the yield updated every month, quarter, year? I see that zwc now only offers a 7.22% yield, was just wondering why it would've gone down. Thanks!!
They changed their dividend this month from 11 cents to 10 cents . But it might be temporary. Dividend changes on cc funds can be for a number of reasons , like not enough option income , which is more common during a bull market
@@PassiveIncomeInvesting Perfect thank you!!
Do you know about xdiv? My friend told me about zwc recently though, maybe it's better for me.. Is it on IBKR? I heard etfs are free on interactive. Oh yeah, thanks for sharing.
yup dividend growth style. zwc is covered call. different strategy
thank you for the info
I just came out of my bank and spoke to a financial advisor. I mentioned ZWC and he made it seem like he didn't know what I was talking about. I have 10 grand to invest and I am wondering what is the best way to take that money and put it to work. Should it be through my bank? Wealthsimple? Something else maybe? I should add that this person that I spoke to was already talking about putting me into a profile and/or talking about low medium risk.
You should invest and manage it yourself!
@@PassiveIncomeInvesting How? I am with scotiabank. Is this a good bank to deal with?
There pretty much all the same . They have decent broker platforms
I am building a post retirement portfolio with ZWC, ZWE and ZWS. Since these are all blue chip stocks with downside protection, is there a need to diversify with bonds? If so, what safe bonds or bond ETFs can you suggest?
I don’t recommend bond ETF’s they suck , check out zpay and zph !
Thank you for your sharing. This is my first time coming across your channel.
Another great video - thanks Adrian.
I actually bought a lot of ZWC units in November 2020, and the dividend yield for the first few months was 8%. Unfortunately, in mid-2021 BMO decided to reduce the dividend yield payment by 1 cent (from 11 cents to 10 cents per month), which had the effect of lowering the dividend yield to roughly 7.3%. I still have my ZWC units, and the stock price on the units has gone up by about 14%. I'm tempted to sell my ZWC units now, but I'm not anxious to trigger the capital gains and pay tax on those gains.
Keep it …. You locked in a nice yield and it could always get increases back to previous levels
Subscribed!
I have ZWU ZWC ZWE .... I did not get a "CALL" means! Thank you
Do you wonder at times if the TFSA will ever stop increasing the contribution limit? At the moment it is at 75,500$
For example, it will stop increasing the limit at 85,000$?
No I don’t wonder about that stuff lol
@@PassiveIncomeInvesting do you think they will? Or keep increasing it for the decades to come? Lol
I think they will keep increasing it
What a stupid question
Hi from Bali-
Are you still
Behind this strategy on zwc??
I’m looking to acquire this in my ira
I’m a usa citizen ..
Thanks
John
Can’t go wrong with zwc , easy way to get exposure to the best dividend stocks in Canada 🇨🇦
Just a hypothetical, but what are your thoughts on potentially just taking your entire maxed TFSA and putting it all in ZWC and setting up a DRIP so it compounds like crazy with the high yields?
Lol you can but why would you ? Why not diversify and be safer .... what happens if something goes wrong with Canada ? Zwc would be heavily impacted
@@PassiveIncomeInvesting Yeah that's what I was thinking too. Was just wondering your thoughts were on the hypothetical since you seem quite bullish on these high yield Canadian covered call ETFs and split share funds.
For sure , but I still wouldn’t put all my eggs in that basket . I like to have a piece of everything in different parts of the world . Especially the advanced economies .
How does the stock price performance for the non covered call version compare to the CC version ?
Slightly better I’m sure ...
Passive Income Investing
I've watched a few of your videos in the past week.
I think I understand a bit better what you're doing.
Would it be a reasonable summary of understanding to say that you have about $900k in dividend portfolios, with a yield of 9% or 10%.
Stock appreciation is minimal due to focusing on dividends etc.
Spread over a few accounts for tax reasons.
Maybe 1/3 or so in covered call dividend stocks. And the rest in various individual stocks and EFTs.
hope I'm getting there with understanding it
Hey adiran, I was just wondering like what would be an ideal number of shares for this? Especially for a beginner investor. PLease reply, thankyou!
Number of shares is irrelevant, just don’t buy them a few at a time . There is a fee whenever you buy shares , so my advice is to save up at least 1000$ before you invest in a stock . Personally I invest about 2500$ a pop . The important thing is to start as soon as possible
@@PassiveIncomeInvesting Do you suggest the samething for those who use questrade since the fees are relatively low?
Honestly each person has a different tolerance for fees . Some people don’t k is that back in the day td charges 30$ a transaction lol . We’re spoiled now …
Thank you so much.