Viewing Company BMO Europe High Dividend Covered Call Hedged to CAD ET | StockChase
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BMO Europe High Dividend Covered Call Hedged to CAD ET Stock Symbol: ZWE-T

Last Price Recorded: $21.6000 on 2017-03-27

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Date Signal Expert Opinion Price
2017-03-27 DON'T BUY Larry Berman CFA, CMT, CTA

It is a broad, European, covered call strategy.  It could easily fall 10-15% minimum.  Don’t put new money to work here now.  Europe overall is pretty cheap, however. 


Price:
$21.600
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Unknown
2017-03-20 BUY Larry Berman CFA, CMT, CTA

BMO high dividend or BMO Europe high dividend? He loves these and uses them in his fund. When you want to play defence, a high dividend concentration in stocks, tend to have lower downside risk. If you do this with a Covered Call, you get an enhancement on your yield.


Price:
$21.590
Subject:
STOCKS & ETFs
Bias:
UNKNOWN
Owned:
Yes
2017-02-27 COMMENT Mike S. Newton, CIM FCSI

Likes the European space and has been cautiously moving into it. There are a lot of events on the horizon. The covered call writing gives this about a 6.75% yield. He would be more inclined to go directly without having a covered call strategy on top. You would probably get more torque and upside here by not using the covered call strategy. Not using covered calls brings down the costs.


Price:
$21.330
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
OPTIMISTIC
Owned:
Unknown
2017-02-23 COMMENT John DeGoey

He likes this because it has 2 things that he is always telling people to do. 1) Invest outside of Canada, and 2) anything that has a dividend bent to it is pretty much, as a by-product, going to be a value kind of tilt. This basically gives you European large cap value stocks, which is a good and reasonably conservative way to diversify your portfolio.


Price:
$21.360
Subject:
PERSONAL FINANCE & ETFs
Bias:
UNKNOWN
Owned:
Unknown
2017-02-13 BUY Larry Berman CFA, CMT, CTA

European Market. He plays it with ZWE-T. It has high dividends and a covered call strategy with a currency hedge.  6-7% yield.  For the next 5 years that would be pretty good for Europe.  It is the more conservative way to go.


Price:
$21.310
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Unknown
2016-10-31 BUY Larry Berman CFA, CMT, CTA

Comment on an ETF Basket of ZWE-T, ZDH-T and ZWH-T.  ZWE-T is high dividend Euro stocks with a covered call.  A defensive way to play Europe.  ZDH-T is hedged.  ZWH-T is international High Dividend US, non-hedged.  He likes them all and owns them in his funds.


Price:
$19.820
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Yes
2016-10-13 COMMENT David Baskin

Thinks the feds will raise the interest rate in December, and it will be likely that people will sell interest sensitive stocks. A lot of the European stocks trade at cheaper metrics than similar North American names. The attraction is twofold. You can buy good quality companies at a lower price, and the hedged product is smart, because the US dollar could easily rise against the euro. This one would not be a silly idea. He doesn’t know if this qualifies for the Canadian tax credit or not though.


Price:
$19.850
Subject:
NORTH AMERICAN - LARGE
Bias:
UNKNOWN
Owned:
Unknown
2016-10-06 COMMENT John Hood

A covered call ETF based on the largest European stocks. It has a pretty attractive yield of about 7%. The dividend part will be classified as income, but the covered call is capital gain. The question is, do you want to be in Europe right now? He has basically left Europe and not adding it to positions. However, this is a really good ETF and a good way to participate in European markets with a covered call overlay giving you some downside protection.


Price:
$20.090
Subject:
OPTIONS & ETFs
Bias:
CAUTIOUS
Owned:
Unknown
2016-10-03 COMMENT Jim McGovern

Europe has had some good growth already. The CAD hedging on this is helpful, especially if it’s in retirement accounts where your liabilities in the future are going to be in Cdn$. In general, this is going to be a basket of blue-chip European dividend players. If you saw some of the European valuations get a little bit closer to the US by 10%-20%, he would probably take it off.


Price:
$19.930
Subject:
NORTH AMERICAN - LARGE, ETF'S & MACRO STRATEGIES
Bias:
UNKNOWN
Owned:
Unknown
2016-10-03 BUY Larry Berman CFA, CMT, CTA

It is his preferred way to play Europe.  Dividend companies with covered calls being written on them.  With a defensive outlook, it is a nice way to be in the market. 


Price:
$19.930
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Unknown
2016-09-20 COMMENT Tyler Mordy

European equities are fraught with political risks, but looking at European equities, particularly with a yield versus government bond yields, there is a radical difference. At a certain point, there is going to be a rotation back into equities, and these institutions will have to take on more risks to meet their liabilities. He likes this ETF and it is a good hold. Dividend yield of over 7%.


Price:
$19.460
Subject:
ETF's
Bias:
BULLISH
Owned:
Unknown
2016-09-12 COMMENT Mike S. Newton, CIM FCSI

Hedged to the Cdn$ and also does the Covered Call Writing which a lot of people are attracted to. Covered Calls will sort of cap your upside on the growth of the actual underlying, but can generate a pretty decent additional yield by capturing a bit of those option premiums. The more moving parts in something, the less he is attracted to it. He prefers the simple.


Price:
$19.850
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
OPTIMISTIC
Owned:
No
2016-08-29 BUY Larry Berman CFA, CMT, CTA

Recommendation for a US or European ETF? The US is expensive, while Europe is relatively cheap.  From a long term buy and hold perspective, Europe is okay.  He likes ZWE-T, high quality, high dividend, currency hedged with a covered call overlay.


Price:
$19.660
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Unknown
2016-08-04 WEAK BUY John Hood

It is paying a yield of 7-8% and he would look at it if he was anxious to do Europe.  It has held its value rather well despite the turbulence.


Price:
$19.390
Subject:
OPTIONS & ETFs
Bias:
BULLISH on US ECONOMY
Owned:
No
2016-07-25 BUY on WEAKNESS Larry Berman CFA, CMT, CTA

He likes the covered call overlay and yield around 7%. He does not like the risk in Europe, but it is lower than North America.  It is a diversifier from Canadian and US dividend holdings.  He would not buy it here.  He would lighten up.  He would buy it back on a pullback.


Price:
$19.310
Subject:
NORTH AMERICAN - LARGE & ETFs
Bias:
UNKNOWN
Owned:
Yes
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2 Comments

GerryT1

October 26th 2015 at 7:25pm

Interesting potential opportunity but I wonder:
1 - Are they writing covered calls on a large percentage of the companies in the ETF.
2 - Do they use leverage or not.
3 - Does the monthly distribution include a large percent of "Return Of Capital"

Hans Albrecht

August 26th 2016 at 4:19pm

Horizons Enhanced Income International Equity covered call ETF (HEJ) to July 31 is up 5.2% versus 0.70% for ZWE, with volatility of 15.9% versus 17.8% for ZWE. And with a better div yield of 8.3% versus 6.6%. But it is more 'worldy' than just Europe, with exposure to S.America and Asia as well as Europe.
Full disclosure: I work for Horizons


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