What kind of fund is Dividend Select (DS) 15 Corp and is it risky?

Does Dividend Select 15 Corp (DS.TO) have any weird stipulations on it, like the shares expire at a certain date or is it a straight-forward investment, unlike a split-share corp? I need to know if there are any hidden things in there that may make me lose money, aside from capital depreciation. Not sure why it isn’t a plain old ETF? Thanks.

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Asked on November 22, 2020 5:57 pm

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Hi there - it is a fund put on by Quadravest and the intention is to deliver 10% annual income to shareholders. IT has a 0.75% MER fee and its holdings consistent mainly of financials and energy stocks. You can get the full details of the fund here:

https://www.quadravest.com/ds-fund-features

Personally, I am not a fan of these type of gimmicky funds and agree you are better off investing in an ETF. Although it does not appear to be a split corp, it still relies on cash inflows to make the model sustainable. Just look at its performance over the past decade - which was a bull market. What you get in yield, you lose in capital depreciation.

Mat

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Posted by Mathieu Litalien

Answered on November 23, 2020 4:34 am

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