Oops, I Did It Again
In my last post, I showed the performance of the BMO covered call ETF’s compared with HYLD.
To my surprise, the BMO Covered Call ETFs have done pretty poorly. All of them are money losers. What really surprised me is that I KNEW they were money losers before buying them, but I bought them anyways.
So I sold them. I sold all the covered call ETFs – ZWB, ZWC, and ZWU. Buh-bye. I also sold ZLU. Just to simplify my holdings even more.
But what do I replace them with?
After looking at the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) ETF, I really saw it as an excellent diverse set of holdings.
It holds Canadian Financials, Gold, Energy Giants, Tech Achievers, Covered Call Utilities, and Healthcare Leaders.
Now it holds 16% of the BMO ZWU ETF I just sold. But that’s OK.
I like that it reduces my holdings. Instead of owning 4 ETFs, I own 1. And I like the 10.6% distribution yield. Much better than the BMO ETFs as well.
As I said in the last post, I have plenty of stability. I have significant money market and short-term bond holdings. I can use that as something to sell if I ever need cash. And then I can hold these riskier assets for longer. I put some of the money from those sales into HDIV.
ZWB, ZWC, ZWU, and ZLU collectively held 16.6% of my portfolio. The new HDIV is 12.1%. I still have 4.5% of cash to invest after this.
This move also increased my average dividend yield from 5.15% to 5.70%.
I have a crazy idea. Should I buy Berkshire Hathaway?
Buffett and Munger are in their late 90s, and there is significant concern about their remaining years able to run the company. I know that they have asset managers already in place. But what will the stock do once Saint Warren is no longer in charge? A significant concern.
BRK has significant stakes in several companies. They own shares in American Express, HP, Bank of America, Apple, Amazon, Coca-cola, Chevron, Kraft Heinz, and more. It’s like an ETF.
I’ve always wanted to own an actual share of BRK.A. That would be something.
There is also a “yield” version of Berkshire called BRKY.TO.
They execute a covered call strategy on Berkshire. I can’t imagine the premiums are very high. But the fund shows around 5% per year yield currently.
Oh, what the heck. I bought a few shares of BRKY just for fun. BRKY is only 1.5% of my portfolio.
I also bought some more CANOE Income Fund (EIT) and Doubleline Opportunistic Credit Fund (DBL) just to make those holdings more significant. It’s becoming less useful to hold a small amount of any stock or ETF.
