Wealthsimple Portfolio Strategy: XEQT vs Covered Call ETFs | ETFs

Wealthsimple Portfolio Strategy: XEQT vs Covered Call ETFs | ETFs | Blossom Social

Joe's post

ETFs · 4d

What do you guys think?

With the market finally pulling back, and possibly dropping more in August, would you use a Wealthsimple Portfolio Line of Credit at 3.95% to buy $XEQT for long-term growth and just sell some of the shares every month to pay the interest off, or would you buy covered call ETFs like $QQCL $QDAY $ECHI $HYLD $HDIV and collect the higher yearly yield of 14% instead and just give some of the dividends you get and pay the interest and the rest just re invested back?

I’ve had $30,000 invested through my Portfolio Line of Credit since March, reinvested all the dividends, and even after paying about $500 in interest so far, the portfolio has stayed relatively stable even with this pull back.

Which strategy would you choose?

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25 Comments

Richard Verhaeghe

@ravonar · 4d

No thank you to margin of any kind

Heath

@incomewealthinvestor · 4d

Pick what works for you!
Screen shot of 4 funds I do hold $QQCL $HYLD $HDIV $HEQL Vs $XEQT
Receiving distributions above your interest rate, you could just re-invest or pick a combo like $HEQL / $XEQT with $HDIV for a 6% dividend yield.

Wolfie

@wolf1e · 4d

I use covered call etfs with NAV stability/ growth to both live off of and pay down the margin account. You would generally want something that is high Roc for tax time. Last year HYLD was 100% Roc. The Daymax funds also seem to have higher Roc. Don't put garbage that depreciates too much like BIGY in there. Good luck.

Andy @anindya · 4dEdited

$VFV or $XEQT anytime over CC ETF for growth.

Kar Yung Tom@karyungtom · 4d

In the past, I just margined with XEQT and paid the interest off with my work income.

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