Topic: How To Invest

Q: Pat: Could you share your views on the First Asset Tech Giants Covered Call ETF? Regards.

Article Excerpt

A: First Asset Tech Giants Covered Call ETF (CAD Hedged), $14.97, symbol TXF on Toronto (Units outstanding: 6.1 million; Market cap: $91.3 million;, invests in what it sees as some of the largest and most innovative U.S. technology companies. The largest 25 tech stocks listed on New York or Nasdaq, measured by market capitalization, are chosen for inclusion in the ETF on an equally weighted basis. They are rebalanced quarterly. The $168.6 million ETF started up on October 24, 2011, and has a 0.65% MER. First Asset is owned by C.I. Financial. The ETF’s top holdings include Micron Technology, HP Inc., Corning, Intel, Applied Materials, Facebook, Microsoft, Yahoo, Adobe Systems,, Cisco Systems, Alphabet, Intuit Inc., Nvidia and Qualcomm. First Asset Tech Giants has a high 4.6% yield. However, the ETF’s portfolio does not provide enough dividend income to cover the fund’s management expenses and fees, plus that high yield. To make up the difference, it has to make capital gains by…

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