Larry Berman CFA, CMT, CTA BMO CDN HIGH DIV COVERED CALL ETF ZWC-T BUY Mar 24, 2025

Hold the big Canadian banks, Enbridge, BCE and Manulife. But the option premiums on these stocks is small.  So, you're selling some of the upside potential, but not getting downside potential. But this pays you high-paying dividend stocks at a 0.72% MER.

Defensive product with relatively good yield. Good option for Canadian oriented investors. Provides safety with defensive orientation. Good for a balanced portfolio. 

Defensive name with stable companies. Would recommend for defensive investors. Would recommend product mixed with exposure to Europe and USA. 

Broad exposure to Canadian "covered calls" (Banks, Telcos, Energy Infrastructure etc.) Would prefer European version - more value in European markets. Tax benefits for Canadian investors. Valuation of TSX is fair - seeing better options in other markets. 

Covered call strategy will limit upside on capital, but also provides stable income. Good option for investors looking for dividend yield. Quality product that would recommend for the long term. 

Covered call strategy on a basket of Canadian names. Yield ~6.7%, and pretty tax efficient. Income is fantastic, but note that just owning the underlying securities will outperform 80% of the time. So if you don't need the income, just buy the stocks outright. MER is 72 bps, higher because of the covered call.

You need a higher return than a bond is going to give you today to keep up with inflation and grow your savings. Alternative ETFs such as ZWU, VCNS, ZWB, ZWC, and PJAN are what's needed to protect your portfolio, rather than conventional bonds. 

These are what you need to generate the income you'll need for retirement, to get a real return on your investment, more than just protection of principal.

When you go for high-dividend payers in Canada you get the banks, insurance companies, pipelines, and some of the energy names. Yield will be a bit over 4%. A nice way to play.

Vanguard, iShares, and BMO all have offerings, but they all do it slightly differently. BMO has a covered call version, ZWC. There's ZDV, XDV, VDY. Take a look at them all and see what you like. All have different weights to the components. They're all equally good.

Very broad exposure to the Canadian market across all sectors, with a covered call. Very tax-efficient for Canadian taxable accounts, which is why he likes it a lot. For new money, likes it better at $16 than at $18.