BMO Covered Call Canadian Banks ETF (ZWB.TO)…

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BMO Covered Call Canadian Banks ETF (ZWB.TO)

28.91

+0.02 (0.07%)

as of Jun 5, 2026, 7:58:02 pm Market Open.

328 watching

Investor Insights

Jun 6, 2026, 12:00 am

This summary was created by AI, based on 9 opinions in the last 12 months.

The BMO Covered Call Canadian Banks ETF (ZWB) has received a mix of reviews from various experts, highlighting both its benefits and drawbacks. The ETF, which is concentrated in Canadian banks and designed to generate income through a covered call strategy, has seen a notable increase of approximately 52% over the last year, albeit less than the equal-weighted counterpart, ZEB, which rose by 63%. While many experts appreciate the extra layer of yield that the covered call provides, they also caution against investing heavily at this stage in the economic cycle due to potential downturns affecting bank performance. Concerns about underperformance relative to the underlying banks, and the inherent trade-offs of call writing, such as capping upside potential, were also articulated. Overall, ZWB is seen as a long-term holding for those looking for income, but caution is advised regarding new investments given current market conditions.

Consensus

Cautious

Valuation

Fair Value

Similar

ZEB-T

COMMENT

Covered Call Cdn Banks ETF. There is a little bit of cannibalization in that you have a good income coming in with the yield but are sort of eating away with the decline in the actual banking sector. If yield is not a factor, consider unleashing yourself from the covered call portion so you have exposure to actual banks. Wouldn’t do this until we are through the current banking reporting season.

BUY

Should be sustainable because it is paying out call premiums and bank dividends. Great yield of 10%. If banks are going to take off, which he doesn’t think they will, then own the banks.

BUY

Covered Call Cdn Banks ETF. Like everything else, it has been hurt pretty badly. It has a margin of safety because of the covered calls as well as a diversification of all Canadian banks. Now is a great time to get in.

WEAK BUY

Made up of out of the money options and bring in a premium. Down about 16% but a yield of 10%. Protects bank holdings. Not a bad entry point right now, but only take a little position.

BUY

Covered Call Cdn Banks ETF. Effective dividend of about 9%. If you believe financials have been beaten up this is a good one to buy. A great way to manage your risks.

DON'T BUY

It is a complex product. Management costs are high and eat up a lot of income. You capture all of the downside of the bank stocks. But it doesn’t get the upside on the bank stocks because they are selling options on them. If you believe banks will say where they are, it would be good, but he believes banks will go up and so this ETF will not.

DON'T BUY

Covered Call Cdn Banks ETF. Would not be buying this because it is tied to the banks. Covered call strategy is appealing because you get an income in addition to the dividends. However, that softens the blow. Good idea in a stable, rising or even a slightly declining market but not a good thing to be holding now.

BUY

Covered Call Cdn Banks ETF. He would consider this as a Hold versus a Trade. He looks at Covered Calls as an opportunity for investors to get into covered calls. If your broker doesn't do covered calls, this is a good way for an investor to get in.

BUY

Covered Call Cdn Banks ETF. Very much in vogue right now. You own the 6 big Canadian banks and they write covered call options against them, receiving a premium by doing so. Also takes volatility out of the banks. Yielding about 10%. If the banks go roaring up, you don't want to own this.

BUY

Covered Call Cdn Banks ETF. Wants a high yield, stable, long-term investment for his TFSA. Would this qualify? Likes this one. Not all that volatile.

COMMENT

Covered Call Cdn Banks ETF. Has only been around for a couple of months but really likes the idea and concept. They buy bank stocks and automatically right call options against them. They distribute the premiums and dividends they receive. On average you can expect a yield of 8%-10%.

COMMENT

Covered Call Cdn Banks ETF. Dividend is based on ability of Cnd banks to pay a dividend. The other part of the cash flow is from the managers selling covered calls against individual bank stocks. If banks rally, you lose out on this portion because you will lose the strike price on the call. Call option premiums in bank stocks are in the lowest quartile of all stock options. He prefers to do his own covered calls. Dividend is safe and cash flow is reasonable.

BUY

Covered Call Cdn Banks ETF. If you believe that banks are going to be somewhat sideways or maybe a bit of a move upwards, this is a great ETF to own the banks while getting covered call premiums. Yield on this is 9%-10%.

COMMENT

Covered calls return is based on volatility of the underlying stock. You can’t rely on the 10% dividend because it varies with the volatility from time to time. Do not believe the quoted yield.

BUY

Covered Call Cdn Banks ETF. Good one for an RESP. You are getting the growth of the banks with additional income from covered call writing. 10% yield but this varies from month to month.

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BMO Covered Call Canadian Banks ETF (ZWB.TO)