Hi everyone back on Monday November 28, 2016 I wrote a post titled Big Sell in that post I mentioned that I would announce what I did with the cash I received from selling those stocks. Well today I can tell you I purchased my first ETF.
The ETF that I chose was the BMO US Dividend ETF (Ticker: ZDY). The ETF is designed to provide exposure to a yield weighted portfolio of US dividend paying stocks. It uses a rules based methodology that considers the three year dividend growth rate, yield, and payout ratio to invest in U.S. equities. (Source: BMO)
Reasons for Purchasing
- Gives me access to 100 US stocks (Previously I only had 2)
- I don’t have to worry about the Canada/US exchange rate
- Portfolio is in a better position more diversified
- Management Expense Ratio is 0.34%
Top 10 Holdings
- Seagate Technology PLC
- Williams Companies Inc.
- Kohl’s Corp
- Nordstrom Inc.
- Macy’s Inc.
- Valero Energy Corp.
- Qualcomm Inc.
- Caterpillar Inc.
- Garmin Ltd.
- Gap Inc.
The ETF pays a monthly dividend of $0.062
I purchased 447 shares at $28.8245 = $12,884.55 + $9.99 (Trading Cost) = $12,894.54. With this purchase I will receive $27.71 per month in income if the dividend remains the same.
After these sells and one buy my forward dividend income will be reduced by $100.71. Even though I am losing income I am very happy with these transactions as I now have greater exposure to the United States market and economy.
So what do you guys think of my purchase, I would love to read your thoughts.
Thanks for reading