Recent Sale

     A position that I have held for a few years yield north of 6% annually and paid monthly.  Was it a REIT, ETF, or a regular stock? The position was the Horizon's Natural Gas Yield ETF.  The ETF had fallen on difficult times due to lower natural gas prices.

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:  Horizon's ETFs )

The downside of owning an ETF is that you have to pay management fees unlike owning a stock.  This cuts into your returns.  Although the yield was high, the price of the ETF traded below $13 for many months.  The monthly distribution is also different every month.

HNY.TO has increased in value recently, so I decided to sell my position at a profit.  Although HNY.TO provided income their is not much in terms of future growth.  The owned 121 units in my TFSA, that is currently shown in my portfolio.

This sale reduces my annual dividend income by approximately $80.00 per year. I say approximately as the distribution amount varies month to month.

My investing tab spreadsheet will be updated in early December to reflect this sale.

Disclosure: I also owned 337 units of HNY as part of a savings project.  I sold out of this position as well.

DISCLAIMER

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.