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BMO Premium Yield ETF (ZPAY.TO)

33.29

+0.08 (0.24%)

as of Jun 16, 2026, 7:59:31 pm Market Open.

152 watching

Investor Insights

Jun 16, 2026, 12:00 am

This summary was created by AI, based on 14 opinions in the last 12 months.

The BMO Premium Yield ETF (ZPAY) employs a covered call and cash-secured put strategy, targeting a yield of 6% or more, making it attractive for income-focused investors. Experts highlight its defensive posture, as it tends to experience less downside volatility during market corrections, although they caution that it is not designed for massive capital gains. Additionally, ZPAY has performed well against its hedged counterpart, suggesting strength in its strategy, especially in the current economic context. However, potential investors are advised to consider their risk tolerance, as it carries equity risk and is not a safe haven for liquid funds, particularly if a short-term investment is needed. Overall, ZPAY is appreciated for its tax efficiency and active management approach, but it's important to approach it with caution, especially if significant market shifts occur.

Consensus

Positive

Valuation

Fair Value

Similar

ZWU

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.

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.

COMMENT

The caller was asking about tax exemption for this ETF. For the dividend withholding tax exemption, he cannot definitively say how it would be treated. The best way is to consult the BMO website and call to ask or to consult a financial advisor.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. In a market decline, this ETF would probably decline less than average, if not hold up relatively well. The fund covers a mix of large, conservative US stocks and fixed income securities. Unlock Premium - Try 5i Free

BUY

Half exposure on average with long positions with covered calls, and half with puts. Any given month that goes down, it could go longer. The range follows the markets.

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