Monday, November 14, 2016

Recent Purchase

         I had some money in my TFSA account that I wanting to put to work.  What to do with it? Buy a dividend growth stock,  a bond ETF, average down on a position, or dividend based ETF?

       I noticed an ETF that I previously held in my TFSA had been trading at a low price.  Horizon's Natural Gas Yield ETF (ticker symbol : HNY) was trading below $14.00 per unit.

Click to Enlarge

      The objective of this ETF is as follows :

The investment objectives of Horizons HNY are to provide unitholders with: (i) exposure to the price of natural gas futures hedged to the Canadian dollar, less the ETF’s fees and expenses; (ii) tax-efficient monthly distributions; and (iii) in order to mitigate downside risk and generate income, exposure to a covered call option writing strategy. - Source : Website

        The ETF pays a monthly distribution that is variable.  As per the chart above, you do not necessarily see the variable distribution.  The distribution is paid to 5 decimal places. So, I recently purchased 39 units of HNY at $13.60.  The distribution is approximately between $0.10 to $0.11 per unit per month.  My broker has zero commissions for most ETFs.

       I will update my investing tab spreadsheet in early December with this new purchase.

Disclosure:  Long HNY

I am not a financial planner, financial advisor, accountant or tax attorney. The information on this blog represents my own thoughts and opinions and should NOT be taken as investment or business advice.

Every individual should do their due diligence to make their own financial decisions based on their financial situation and tolerance for risk.

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