Topic: How To Invest

Q: Pat: What do you think of the Purpose Core Dividend Fund ETF? Thanks.

Article Excerpt

A: Purpose Core Dividend Fund ETF, $27.78 symbol PDF on Toronto, (Units outstanding: 13.0 million; Market cap: $361.1 million; www.purposeinvest.com), holds U.S. and Canadian stocks that its managers view as able to sustain and grow their dividends. The fund holds mostly high-quality companies. Those holdings include AbbVie, LyondellBasell Industries, Pembina Pipeline, Finning International, Inter Pipeline, Ford Motor, Las Vegas Sands Corp., Bank of Nova Scotia, General Motors and National Bank. The Purpose Core Dividend Fund ETF holds 51.2% of its funds in Canadian stocks, 47.2% in U.S. stocks and 1.6% in cash. Its breakdown by industry is as follows: Financials, 15.1%; Utilities, 14.2%; Energy, 14.0%; Real Estate, 12.1%; Consumer Discretionary, 10.7%; Telecom Services, 9.5%; Industrials, 7.1%; Health Care, 5.7%; Consumer Staples, 4.6%; Materials, 2.8%; Information Technology, 2.5%; and cash, 1.7%. The fund’s portfolio is equally weighted among the 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,…

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