BMO Premium Yield ETF (ZPAY.TO) Buy, Sell or…

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BMO Premium Yield ETF (ZPAY.TO)

33.31

-0.09 (0.27%)

as of Sep 4, 2026, 7:59:40 pm Market Open.

153 watching

Investor Insights

Sep 5, 2026, 12:00 am

This summary was created by AI, based on 16 opinions in the last 12 months.

BMO Premium Yield ETF (ZPAY) is designed for income-focused investors with a strategy involving half of the portfolio in long stocks with covered calls and the other half selling puts to generate income. It offers an attractive yield of approximately 7%, though it does present some downside risk during market corrections. While it provides exposure to 30-40 large U.S. companies, experts emphasize the importance of diversification to mitigate risks associated with concentrating in a single investment. ZPAY is positioned between equity and income investments, making it appealing for those seeking tax-efficient distributions without leveraging, as the strategy is cash-covered through T-bills. Overall, it represents an active strategy targeting regular income, but should be approached cautiously especially regarding market volatility.

Consensus

Positive

Valuation

Fair Value

Similar

ZWF

BUY

Fees generated from fund option writing is on account of capital. Good option for investors.

BUY

Good defensive strategy. With economy poised for correction, good option for investors.

BUY

Holds high-quality US stocks that pay yields, stocks that Warren Buffett would hold. Add an option overlay which generates tax-efficient cash flow. Yield is 6.35% and MER 0.37%. Holds classics like Nvidia and Alphabet and T-bills. It also sells puts which can be good or bad. Overall, this is good if you want yield and quality US stocks.

SELL ON STRENGTH

Broad exposure to consumer and tech stocks.
Trimming exposure right now.
Better places to invest - pipelines and telco's.
High price at the moment.

WAIT

Uses a combination of options and puts on a combination portfolio of treasuries and stocks to achieve a yield from writing both puts and calls. Distribution of 6% or more is significantly higher than what you can get in the bond market. Invented when interest rates were around 0%. The risk is equity-like, so you need a sophisticated understanding of how it works. Best time to buy is when bond yields are very low. More tax-efficient than straight income from a bond portfolio, but consult a tax advisor.

BUY

A strategy that writes puts on stocks they want to own at lower prices and extracts yield. When they own a stock, they write a call long term. This produces around 6% yield.

BUY

There will be volatility of equities and currencies will move up and down. If you don't like the currency side, then you can get ZPAYF which is hedged. He still likes ZPAY. Markets will be volatile for the next couple years and this will be a good way to play it.

PARTIAL BUY

Exposure to US large cap stocks. Uses it in yield strategies. Could be a good time to add it here. There could be more downside to equities though. You could buy here though. You also buy USD when buying ZPAY.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It has largely traded sideways while offering a yield around 6%. A good choice for investors seeking yield, not capital appreciation. The ETF combines a puts and calls strategy on US large-cap companies. More upside exposure due to more puts than calls. Unlock Premium - Try 5i Free

BUY ON WEAKNESS

They only write the covered calls on half the position, so you get more upside exposure than pure covered calls. For a more conservative play, ZWB has a covered call strategy on banks. Nothing is risk free however. Does not think there will be a big recession.

COMMENT

It is a buy low, sell high strategy. The target is 6%. Good for yield seekers who do not want to take risk and see volatility. The yield is sustainable.

COMMENT

Could probably buy 2-4% from today. ZPAY, you can buy any time. It should have half the volatility of the market. The lower the markets get, the longer you get. The buy low and sell high strategy with 6% yield.

COMMENT

Right now, you are getting more yield from the market. Once markets go down, having covered call exposure is not ideal. After a major market decline, it is not the best thing to hold however. Adding more to pure dividend holdings than ZPAY. However, if you want to play defence, then it is one of the more defensive ways to go.

BUY

Owns US large cap equities with a covered call. Good for yield strategy. Really likes it. Long 50% with covered calls, and puts with 5-15% lower. Buy-low, sell-high strategy. Half the volatility of S&P 500.

COMMENT

Exposure to currency is mostly hedged for ZZZD. ZPAY is always in USD. ZWP is Canada relative to European currencies. The Canadian dollar selling off is a factor, but they are also doing well because they are doing what they are designed to do.

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BMO Premium Yield ETF (ZPAY.TO)