First ETF Purchase

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.

etfs

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.

Dividend Info

The ETF pays a monthly dividend of $0.062

Transaction Details

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

Matthew

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4 thoughts on “First ETF Purchase

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