💰High income ETFs can provide substantial dividends for investors.
🌎Canadian-based ETFs offer the convenience of trading on the TSX.
🔍Investors should conduct thorough research to understand the source and sustainability of high yields.
⚖️High income funds prioritize dividends over capital appreciation, but may still offer growth potential.
👵👴High income funds are suitable for retirees and income-focused investors.
Are high income funds risky?
—While high income funds can be perceived as riskier due to higher yields, it is important to conduct thorough research and understand the underlying securities before investing.
Who should consider investing in high income funds?
—High income funds are suitable for investors looking for substantial income and are willing to prioritize dividends over capital appreciation.
Can young investors benefit from high income funds?
—Yes, young investors can still benefit from high income funds by reinvesting the dividends and taking advantage of compounding growth.
Do high income funds only invest in Canadian securities?
—While Canadian-based high income funds trade on the TSX, the holdings within the funds can be diversified globally.
What are the potential trade-offs of investing in high income funds?
—Investors may have to sacrifice some capital appreciation potential in exchange for high dividends when investing in high income funds.
00:07Welcome to another video where we explore three high income ETFs with distribution yields of 6.7% and higher.
02:45The first fund we'll discuss is HDIF, which offers an 8.5% distribution yield. It is a diversified monthly income ETF with a global focus.
04:30Next, we have ZWB, a covered call ETF that focuses on Canadian banks. It provides a yield of 6.29% and offers exposure to the top Canadian banks.
06:40Our final pick is ENB, which focuses on energy infrastructure. It provides a distribution yield of 6.7% and invests in world-class energy assets.
