Topic: How To Invest

Pat: Can you give me your opinion on the Purpose Core Dividend Fund ETF, please? Thank you.

Article Excerpt

Purpose Core Dividend Fund ETF, $24.97, symbol PDF on Toronto (Units outstanding: 8.2 million; Market cap: $204.8 million;, holds U.S. and Canadian stocks its managers see as being able to sustain and grow their dividends. The ETF yields 3.3%. The fund holds mostly high-quality companies. Its holdings include Rogers Communications, Peyto Exploration, CIBC, SNC-Lavalin, BCE, Altria Group, Bank of Montreal, General Motors and Philip Morris. The Purpose Core Dividend Fund ETF holds 61.0% of its funds in Canadian stocks, 36.6% in U.S. stocks and 2.4% in cash. Its breakdown by industry is as follows: Financials, 14.9%; Utilities, 14.7%; Energy, 14.5%; Real Estate, 14.4%; Consumer Discretionary, 12.3%; Telecom Services, 10.0%, Industrials, 7.5%; Consumer Staples, 5.2%; and Materials, 4.2%. The fund’s portfolio is equally weighted among the roughly 40 stocks it holds. In general, we think you should stay away from equal-weight funds. In addition to incurring periodic charges to rebalance their holdings, they can cut your return by reducing the contribution from…

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