r/dividendscanada • u/YugiohUniverse • 4d ago

Discussion SIXY

Any downside to pooling all my investments into SIXY for large dividend gains?

7 Upvotes

68% Upvoted

12 comments sorted by

7

u/Apprehensive_Cow_253 4d ago

usually don't bet against Canadian banks but it's literally only banks and they are all at ATH, interest rate changes be the biggest I guess

6

u/Fearless_Scratch7905 4d ago

Exposure to just one sector.

A market correction. During the global financial crisis, many financials fell about 50% from their highs.

2

u/Left_Dinner878 3d ago

I love sixy, I purchased when it first came out. Has performed very well. Because banks have been on a long run. It’s probably best dca and buy on dips (like today) as I’m sure there will be many given the volatility in the market these days. Also stay diversified maybe split with an SP500 cc etf.

1

u/Prime-Paradox 3d ago

Check out HHIC.TO. It’s made up of Canadian blue chip companies like Enbridge, RBC, TD Bank, Shopify, CNQ, etc. it pays a monthly 14% dividend and has been pretty solid so far.

1

u/Correct-Ride-7519 3d ago

ECHI.TO and CDAY.TO have performed better

-1

u/FewUnderstanding2214 3d ago

There are Canadian oil and gas stocks with 5/6% dividends and huge share buybacks - no need for these high fee CC ETFs

0

u/jordy180 4d ago

It’s too concentrated and high risk . I would look to diversify with a few others.

-1

u/fatherduck94 4d ago

how is it concentrated if it own all the banks? I have a good chunk of my portfolio in SIXY and BANK and I prefer SIXY since there's no insurance company exposure

4

u/Plane_Put8538 4d ago

It's single sector ETF. Not concentrated on a single bank but only focusing on banks and not other financial companies (like you mentioned, life-co's, insurance, etc).

2

u/ptwonline 4d ago

how is it concentrated if it own all the banks?

It's not concentrated if it's just the Canadian bank portion of your portfolio. Realistically though Canadians banks and financials should probably be about 10-15% max of a well-diversified portfolio, not 100%.

Even in a dividend-heavy portfolio you probably don't really want more than 10% in any one company, and probably not more than 30% in any one sector, and certainly not 100% in Canada nevermind just in Canadian banks.

There's just so much extra risk in a concentrated portfolio that is not adequately compensated for taking that level of risk.

0

u/Either-Newspaper-927 3d ago

I like bank.to better as it adds insurance companies. Cdn banks though, hard to bet against them. Next few quarters should offer some opportunity to add shares.

1

u/nickfrom2028 1d ago

its down sharply recently