Q – I’m looking for U.S. exposure ETFs with some income that can be purchased from the Toronto Stock Exchange. I am moving RRSP investments to a RRIF because my age. Any suggestions would be greatly appreciated. – Raymond L.
A – There are hundreds of ETFs with a U.S. focus that trade on the TSX. Some track major indexes like the Dow or the S&P 500 while others focus on specific sectors of the economy.
If you want broad market coverage, consider the iShares Core S&P U.S. Total Market ETF (TSX: XUU). It aims to replicate the return of the entire American equity market (small, medium, and large-cap stocks). It’s up 14.5% year to date. Distributions are paid quarterly but they aren’t very large (about $0.10 per quarter). The trailing 12-month yield is 1.3%.
For more cash flow, look at the BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (TSX: ZWA). It tracks the Dow and the managers write covered call options to enhance income. This is not a great fund for capital gains (it is up 2.4% so far this year). But it currently pays a monthly distribution of $0.10 a unit, for a projected yield of 5% over the next 12 months. – G.P.