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Hey, Thanks for the great content. I just have a question regarding ETFs vs stocks in a situation where I am a long term investor (ie. looking to hold the investment for 20+ years). I understand that ETFs are a good way to play a sector which helps take away some of the volatility that may be associated with an individual stock but I was wondering what you would advise for lets say the below example: I have been looking to buy individual shares in Manulife but then came across a covered call ETF (FLI.TO) which includes North America’s 10 biggest life insurance companies. Given the covered call strategy helps take care of volatility with markets, this ETF has been issuing a relatively high dividend yield for quite some time. Sure, it may not have the capital growth over the years but the yield is good and in safe companies. What do you guys suggest in these situations? Given that I have a long time horizon, would I be better off investing in this ETF or going solely with Manulife? The idea of compound interest in both situations is the same, so if I keep reinvesting the ETF dividends that are consistently high would that work out better in the long run at the time of retirement compared to the possible fluctuations with Manulife? Sorry for the long winded question. If it is not clear please let me know. The reason I got to thinking about this is because of what happened this last week with RioCan’s distribution which got slashed by 33%. That is a significant blow to a yield that some rely on. But if you invested in something like an ETF (such as IDR as I previously mentioned in another post) this would not have occurred because their dividend has been consistent over the last 7+ years. Although the yield may not drastically increase over the years, at least it’s safe and consistent). Hope this makes sense. Thanks for your guys hard work, you help a lot of people especially during these difficult times.
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