Topic: How To Invest

Q: Pat, I am 75 years old and have a million-dollar-plus investment portfolio, mainly in blue chip, dividend-paying stocks. I recently bought some of the BMO International Dividend ETF. Could you give me your opinion on this ETF? Note—I’ve been an Inner Circle member for years.

Article Excerpt

A: BMO International Dividend ETF, $21.63, symbol ZDI on Toronto (Units outstanding: 20.1 million; Market cap: $434.8 million;, offers exposure to a portfolio of high-yield dividend-paying companies in developed markets. The fund excludes North American firms but can include foreign ADRs trading on U.S. exchanges. The ETF’s manager looks at the three-year dividend growth rate, yield, and payout ratio of the stocks it selects. Its holdings also need to meet minimum liquidity requirements. The fund started up in November 2014. Its MER is a reasonable 0.44%, and the units currently yield a high 4.2%. The ETF focuses on leading large-cap global companies. Its top stocks are Total Energies SA at 2.6% of assets; Nestle SA, 2.5%; Rio Tinto plc, 2.5%; Novartis AG, 2.5%; BHP Group, 2.5%; Roche Holdings, 2.4%; LVMH Moet Hennessy Lois Vuitton SE, 2.3%; Sanofi, 2.2%; Allianz AG, 2.1%; and Unilever, 2.1%. The breakdown by industry is as follows: Financials, 20.5%; Health Care, 14.4%; Industrials, 11.4%; Consumer Staples,10.9%; Mining, 10.0%; Consumer…