![]() ![]() It has a medium risk rating and comparable MER at 0.61, equivalent to a $6.10 fee per $1,000 investment per year. XFN offers a lot more diversification since it’s not concentrated in only 6 stocks. XFN’s top-10 holdings as of August 3, 2021, are: XFN Holdings The iShares S&P/TSX Capped Financials Index is a Financial ETF that provides exposure to Canadian financial companies including banks and insurance firms. iShares S&P/TSX Capped Financials Index ETF RBNK is a relatively new ETF and has a medium-high risk rating. That said, its 10.4% annualized return since inception is lower, although it again beats ZEB with a 58.3% vs. With a yield of 3.93%, RBNK currently has a higher distribution than ZEB. As of August 3, 2021, RBNK holdings were: RBNK Holdings The weights allotted to the different bank stocks are not ‘equal’ or close. If the high management fees for CIC and ZWB are not to your taste, the RBNK ETF also invests in the big six banks while charging a lower fee. While this ETF has a higher dividend yield than ZEB, ZEB has a higher annualized return of 11.59% since inception and 55.24% in the last year. ZWB has an annualized return of 9.38% per year since inception and 44.43% in the last year alone. ![]() It also held several call options with various expiration dates and strike prices. ZWB holdings on July 30, 2021, are: ZWB Holdings Its management expense ratio is higher at 0.72% which is equivalent to a fee of $7.20 per $1,000 investment per year. Similar to CIC, ZWB uses covered call options to earn premiums, lower portfolio volatility, and potentially increase yield.Ĭompared to the 3.33% dividend yield for ZEB, ZWB had a distribution yield of 5.82% as of this writing. The BMO Covered Call Canadian Banks ETF also invests in Canadian banks (top-six) and holds another Canadian bank ETF, ZEB. it is covered).Ĭovered call writing investment strategies work best in a market where price action is sideways or advancing gradually. Since they hold the underlying asset, if the call buyer exercises their option because it has moved “into-the-money” CI can simply offer them shares from its holdings (i.e. The call options used by CIC are derivative contracts that earn premiums. Unlike ZEB, CIC pays dividends on a quarterly basis.ĬIC has provided an annualized return of 9.94% since its inception and 49.81% in the last year. In addition, it held various call options for each bank. This ETF has a medium risk rating and holds the following security as of August 3, 2021: CIC Holdings This fee is 20 basis points higher than the MER for ZEB. Increased active management strategy by this ETF translates to an MER of 0.80% which is $8.00 in fees per $1,000 asset per year. ![]() ![]() In addition, it uses covered call options to minimize volatility and increase income.ĬI Global Asset Management can sell call options on up to a maximum of 25% of the common shares of each bank held each month. Like ZEB, the CI Canadian Banks Income Class ETF also invests in Canada’s 6 largest banks.
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