WORRIED of Split Share Funds?! ETF Replacements for DFN DGS FTN FFN LBS etc.

[@chrisbouchard4780]

What do you think about buying the dip for more dividends later?? Agree like everyone else I'm frustrated but dca is my thoughts

[@PassiveIncomeInvesting]

i think that is a great strategy, fortune favours the brave ... lets not forget

[@Nickgrunc]

Many people commented years ago on your channel that most split funds were just too risky. Ya you got blinded by the big dividends and looked beyond the negatives. Now you understand why knowledgeable investors stayed clear of split funds. Share price goes down while you get your own money back in dividends IF they pay that month.

[@henryhonda8408]

You really shouldn't comment on split funds if you don't understand them.

[@PassiveIncomeInvesting]

thanks for telling me that i learned and what I think. i needed that

[@ManTimeT.V.]

I said bye and good riddance to DGS today. Its not following my investing thesis and goals and missed about 6 months of payments in a row now. Like you said, theres PLENTY of other options. I opted to put that $ into SCHD, DIVO, SVOL and raised my dividends too. I am looking forward to seeing a bit more capital protection and appreciation , especially with schd and divo. The dividends and dividend growth from these in the future should do well. Svol is nice to give a boost to income and to dollar cost average down. Win win as far as im concerned 😊

[@PassiveIncomeInvesting]

thanks for sharing. its all about doing whats best for you. do you have these U.S. listed funds in an RRSP account?

[@ManTimeT.V.]

@@PassiveIncomeInvesting you betcha

[@roberttaylor3594]

Glad I saw this...watched it three times! I have not been watching DGS for the last few months, but ya...that is too many missed dividends in a row for me. I think I will switch to HDIV...I also have NXF which is in HDIV but I will keep that as it has done ok all on its own. Was considering BEP.UN, but the DGS money was slotted for higher dividend products, so HDIV it is! I already have some of that, HMAX, HDIF and HYLD. Went with HDIV because of the 'growth' component you mentioned.

[@nighatnaqi6797]

I bought LBS and FTN a year ago on your recommendation, but they are since then going down. I am FED up but selling at this point is losing a lot of money. Not sure what to do Adrian😢

[@PassiveIncomeInvesting]

dont sell, wait . look at whats inside these 2 funds. its all high quality financials. they are all down right now, so you gotta look beyond the Fund itself. the stocks inside is what counts

[@dkyrtata6688]

Nighatnaqi, no, don't sell! When the markets are down, most of what you hold will be down too. It's normal; it's what markets do to your holdings. September/October are traditionally the most volatile months of the year. So hang in there! The reasons for down markets and their durations are always different. But the end result is always the same; they eventually recover to new highs. The best thing you can do is buy more of FTN and GDV. Both are at new lows especially FTN today (Aug 31) giving a yield of over 18.5%. At $8.19, I bought another 500 shares and waiting to buy more of GDV when it drops below $9. Both of these funds are nowhere close to suspending distributions. The good thing about passive investing is that it provides better comfort during market swings because most of your funds continue to pay you even though they fall in value. If your funds were heading up you would never consider selling them while giving you an annual income stream of over 12%? So enjoy your monthly income and forget about the market value of your funds. They will recover, at which point you will wish you had bought more.

[@BearInvesting]

The only one I’m invested in is ENS it’s so far above the $15 Nav I’m not worried. Regular ENB stock doesn’t have capital appreciation and the dividend growth has slowed down too so why wouldn’t I take 11.5% yield vs 7.5?

[@PassiveIncomeInvesting]

exactly, its simply Enbridge with leverage and some covered calls

[@jimbob1189]

With what would you replace PWI ? thx

[@PassiveIncomeInvesting]

HUTE or UMAX are options

[@randalxu4889]

Thanks Adrian for another timely video! There are a lot of fears out there, but Warren Buffett once said that be greedy when others are fearful. As a PII, I basically just buy and hold forever, well occasionally switch for higher yield. 😁 Thanks for replacement funds mentioned! I have been buying HMAX, BANK, and BKCL and love them!

[@efullname]

Good to know, but DFN is a cash cow at 24% is an opportunity, yes i will miss monthly payments but long term still a PII winner, underlying are blue chips too, also it only takes 1.5 yrs to get my capital back if my yield is 24% - bing AI

[@abha801]

After learning about the Nav part from Adrian I prefer to sleep easy at night and choose the All in ones 🙂

[@PassiveIncomeInvesting]

zzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz

[@abha801]

😂😂😂😂

[@Funkbringer]

Thank you so much for taking the time to make this video. I feel exactly how you described in the beginning of it and I'm sure there are many others like me. We owe you a coffee for this one 🤗

[@waffles1ca]

Question, are Canadian covered call ETF dividends considered “eligible “ by CRA? Thank you.

[@PassiveIncomeInvesting]

it varies

[@joannapatterson4625]

I still have a small portion of ENS and BK in my TFSA. I sold them in my cash account. Put that money in BKCL ENCC and USCL. I see no reason to own splits anymore with the newer options. Thanks for another video ❤

[@PassiveIncomeInvesting]

Thanks for sharing!

[@dwights1024]

no reason to sell ENS

[@henryhonda8408]

Nice to hear you again Joanna. I've been out of ENS for a while now and very recently got out of BK also, although I loved it. With the BK sale I also bought some BKCL, ENCC and more HMAX. USCL is very high on my watch list as is UMAX. Take care!

[@joannapatterson4625]

@@dwights1024I made the decision to sell it out of my cash account for higher yielding funds of which I also like the holdings. I didn’t suggest that anyone should sell ENS. I’m not looking for approval regarding my portfolio holdings.

[@joannapatterson4625]

⁠@@henryhonda8408I hope you are doing well 😊 Take care! I’m active in the Inner Circle too if you’re there.

[@jimwu8532]

Thanks Adrian, looking to pull the trigger on some of these names, just got to get monies situated first. Do you worry about leverage in a down market, or is it a non-issue as long as shares go back to previous levels? I recall some pundits saying it's good to invest after a whole market cycle so you can see the good, bad and ugly...

[@PassiveIncomeInvesting]

i personally think leverage is always your friend long term and on quality assets

[@mastertrader3491]

Good day Adrian - if the yields are somewhat the same or close proximity to each other from one fund to another - what difference would it have to the investor, "earning wise{ if the fund is leveraged or not etc. thanks

[@chemicalbombgang]

What happens if split corps like DFN stock tanks way too low and don't recover ? Do we lose the investment ?

[@PassiveIncomeInvesting]

technically , this is s possibility with every investment

[@dkyrtata6688]

This is why split funds suspend distributions -- to protect them from irreversible damage. However, there are some split funds like FTU that are in this state. I have no idea how they got there. Perhaps it's a question for Adrain to ask Brompton, Quadravest, and Mulvihill, all of which mangage split funds that do nothing.

[@catherinedesilets8960]

Thanks Adriano! Two great videos in one day to help guide income investors!! Keep up the great work

[@PassiveIncomeInvesting]

thanks C

[@TheProjectOverload]

Another great video - Thanks Andrian

[@PassiveIncomeInvesting]

My pleasure!

[@jacquesfournier4616]

Hi, what do you think of PWI split share fund? Usually, utilities are considered safe haven! It went down 39% since I bought it

[@PassiveIncomeInvesting]

utilities have gone down, they are not immune to volatility! and PWI , like all SPLIT FUNDS are leveraged. you cannot forget that. leverage= much higher volatility. KEEP it, the stocks are solid

[@jacquie4047]

It is great that there are so many options. There may be a similar replacement ETF for a split share, but they are taxed very differently. Split shares may be chosen because their distributions are predominantly eligible dividends, whilst ETFs are not. What are some similar ETFs that have a high percentage of eligible dividend distribution?

[@paulsantori8920]

Just buy them in your TFSA or RRSP.

[@henryhonda8408]

@@paulsantori8920 My TFSA is loaded with high yield ETFs....... HMAX, ENCC, BKCL

[@PassiveIncomeInvesting]

not necessarily but some are YES and if E. Dividends are more tax efficient for you, it makes sense. my goal was not to knock Split Funds, i've only ever been a champion for them (the only one) but to present ETF alternatives.

[@jacquesfournier4616]

Hi, great video, especially on banks alternatives. Good job.😁

[@lindsayross9853]

This was excellent. Keep them coming.

[@PassiveIncomeInvesting]

thanks!

[@davinjohnson3613]

My moneys been stuck in FFn since 2020 and no dividend is also killing me

[@g59490155]

Great informative video as always. Personally I don't like these "ALL INCLUSIVE" ETF's, because if everything or all sectors are included in a single ETF like HYLD, HDIV, HDIF and etc, you are never able to observe any trend in a specific sector. It's harder for you to analyze, you can only relay that to the general index, I don't like that.

[@PassiveIncomeInvesting]

yes diversification has positives but also negatives

[@joefalcone4762]

Great information

[@jumbothompson]

I've been loading up on HMAX in the last two months.

[@TheProjectOverload]

Me too - Good times to back-up the money truck and dump into HMAX.

[@Nickgrunc]

HMAX price will continue to go down. The dividend you get is just your own money as the price continues to decrease. Get out before it goes to 0. Never buy in the money covered calls

[@henryhonda8408]

@@Nickgrunc you not only don't understand split funds but that even applies to ETFs. Maybe you should go troll somewhere else with your misinformation. This group is way more intelligent than you are.

[@PassiveIncomeInvesting]

loading up on any financials makes sense right now

[@stuinvests]

Not a great move. The shares have depreciated over 11% in the past 6 months. That’s almost all of your dividends for the year.

[@2617king]

I was literally thinking about looking into this. Perfect timing

[@ananditagangwar9988]

I'll be loading up on FTN and GDV. I bought 7000 DFN at $5. You just upset that you bought FTN and now its dropped. Be a man LOL. FTN and GDV are better than some ETFs, because ETFs can either lower or stop dividends.

[@dwights1024]

good for you, you want your prize?

[@dkyrtata6688]

I agree! I own both FTN and GDV. With a 17.6% yield (Aug 30/23), FTN is my favourite. Not many ETFs come close to that. At 52-week lows, now is a great time to buy both FTN and GDV without much risk of suspended dividends.

[@henryhonda8408]

DFN at $5 is a good buy but I believe DGS is a MUCH better buy right now with a very nice discount to NAV. DFN still has a small premium to NAV.

[@PassiveIncomeInvesting]

lol be a man. do i look upset at all?

[@dkyrtata6688]

Ananditagangwar, income ETFs are not likely to suspend distributions because providing income is their purpose. But they are prone to reduce distributions when markets stabilize as was the case with HYLD and HMAX. And yes, as hard as it is to believe, there is less volatility this year than last year. If you look at the VIX, the volatility index, it sits at under 14; less than half of when it was at 32 last year. And even 32 is relatively low compared to the 65 it was at in 2020 and 80 in 2008.

[@richardlannon]

This is a good video. I want out of my split funds but will take a loss in my registered accounts. Sad.

[@PassiveIncomeInvesting]

not that sad in a cash account, you can carry forward the losses forever

[@richardlannon]

@@PassiveIncomeInvesting I know but unfortunately that will not be an option, so I will pick my battles (so to speak).

[@sidb9540]

I'm going to stick to Split shares.. They've been around for a long long time

[@dkyrtata6688]

I prefer them too because the yields tend to be higher and you can predict if distributions are at risk of being suspended. ETFs give little notice, if any, if distributions are going to be reduced.

[@PassiveIncomeInvesting]

oh ya some investors will. in the end, you're still investing in the stocks INSIDE these funds . some people just cannot realize that and cannot look past the vehicle itself

[@dkyrtata6688]

Another reason why I prefer split share funds is because their distributions are more likely to stay the same when the markets recover. The ETFs on the other hand earn a significant amount of their returns from the 25-50% Covered Calls they sell. But Covered Calls do not generate as much income during rising markets, so the distributions of the ETFs are more likely to be reduced as well as more shares surrendered by the fund.

[@roberttaylor3594]

What happened to CALL in March?

[@PassiveIncomeInvesting]

CALL = U.S. Banks

[@dangelusaenglishchannel4210]

Man! Thank you for another inspirational video! I have some success in a dividend investing, that I shared in my new video and just posted on my channel! Can’t wait to hear your feedback.

[@jeromegraham5422]

Thoughts on SBC? Would you buy going forward?

[@PassiveIncomeInvesting]

its a great fund with a great long term performance. the performance speaks for itself :)

[@joyotydasgupta1190]

Problem is the book value of mine dropped like crazy. So I can't replace. I will lose money

[@MilesBrio]

V5 is coming 👀

[@dwaynecunningham2164]

This video is a year old, and I can tell you CNCL has been very good to this guy. 😊