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

COMMENT

ZPAY is his favourite way to play the US market. European ZWE is for Europe and if you need Canadian exposure. ZPAY is designed to yield around 6%. Will have some volatility but will have half of what the S&P will see.

COMMENT

Hard to say which one would perform the best in a correction. ZZZD has a very defensive posture with half of the portfolio hedged to downside risk. ZWU and ZPAY are in ZZZD. Would look to be defensive in the next few months.

COMMENT

One of his favourite ETFs. Was involved in creating this structure. They write puts on large cap US companies. Once they own them, they write calls on them. Trying to generate yield from the option premium and dividends. Buy low and sell high, 6% yield target. Focused on yield return with modest growth. In a robust economy, this will underperform but will provide yield. Will do well in most markets. A more defensive play.

COMMENT

We saw a sharp weakness in the CAD so the dip was a currency based weakness. There is no longer term net exposure. There are more puts relative to covered calls right now. The under performance this year is the currency impact.

BUY

The ETF that scans the Russell 1000 stocks and tries to find 50-100 that they want to own. Writes puts on these and earns the yield. When stocks fall to the levels, then owns and writes calls on them. Long on half the portfolio and on average writing puts on the other half. As markets go down, you get longer and buy more. As it goes up, it gets called away and sells some. Buys low and sells high with a targeted yield of 6%.

COMMENT

Would not suggest Put Write strategy (ZPH). Would prefer ZPAY for the US market. ZPH never owns the stocks whereas ZPAY wants to own the stock at better prices.

COMMENT

ZPAY is a US based dollar holding. When CAD becomes strong, you lose money holding a US asset. The move down is largely the CAD trading higher.

BUY

It is long with a covered call. They are writing put to generate yield. When markets pull back, you get longer. When markets go up, it gets called away. You get a yield in the 6% range.

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COMMENT

ZZZD gives you exposure to global dividend payers, whereas ZPAY is only US markets. ZZZD has ZPAY in it for the US exposure. ZPAY gives a yield around 6% whereas ZZZD is designed to give 4%.

BUY

An active strategy where they buy US stocks that are attractive and do a covered call overlay. When they want to own the stock but the price is high, they write puts to take advantage of this side. Designed to target yield of around 6% with modest growth. Good for yield seekers.

WEAK BUY

It is US equity, naked puts and covered call writing. There is a good quantitative quality screening going on. It has had a flat performance and you are putting a lot of faith in the management, but that is valid. It's quite active but that is probably a good thing and has a place in a portfolio.

COMMENT

They write puts and buys good companies at lower prices and sells high. He would cycle out of ZPH and ZPW to ZPAY which generates a rate of around 6% but with a better strategy.

COMMENT

ZPH and ZPW way to extract yield from the market without taking a lot of risk. They have been okay but not great. ZPAY is a better way to benefit from the same strategy.

BUY

A way to buy equities that are over priced right now so there are puts written to buy under certain prices. There are also calls to generate yield. It generates a yield of around 6%. On average, there is half the risk of US markets. Favourite holding and biggest part of his yield based portfolio.

BUY

The strategy is half long good quality stocks with covered call, and the other half is writing puts. Buy low, sell high. They are trying to generate 6% yield with half the volatility of the broader markets. Good for a retired income portfolio.

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BMO Premium Yield ETF (ZPAY.TO)