BMO Europe High Dividend Covered Call Hedged…

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BMO Europe High Dividend Covered Call Hedged to CAD ET (ZWE.TO)

21.96

+0.17 (0.78%)

as of Jul 3, 2026, 7:58:14 pm Market Open.

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Investor Insights

Jul 6, 2026, 12:00 am

This summary was created by AI, based on 11 opinions in the last 12 months.

Experts positively view BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE-T) as an attractive investment due to its blend of high dividend payouts and covered call strategies. Many analysts emphasize the potential growth in European markets, especially with increasing fiscal spending and improving trade relationships. The consensus is that ZWE-T provides a sound choice for generating income, particularly in tax-advantaged accounts, as a significant portion of its distribution may come from capital gains. Comparisons with similar funds like ZWU and ZWK indicate that ZWE-T could be a more favorable option for retail investors seeking hedged currency exposure. While the fund may limit growth due to its covered call approach, experts largely recommend it for its overall income potential.

Consensus

Positive

Valuation

Fair Value

Similar

ZWP-T

BUY

For yield seekers, this is a good way to get exposure to some of the best dividend payers in Europe. There is no reason there will be reason to change. During covid, dividend stocks did get crushed so it is not a proxy for bonds. Nothing wrong with using it to get exposure to yield.

BUY

He would prefer to have more exposure to the Euro so he would go with ZWP. However, both are good choices right now.

COMMENT

There is space for these ETFs for yield seekers. One of the challenges in 2020 was that dividend paying stocks did terrible relative to technology that does not pay dividends. Still likes them for conservative investors.

COMMENT

The difference between ZWE and ZWP is the currency hedge. If you think the CAD will do worse than European currencies, then you want a ZWP. If you think the CAD will strengthen against these currencies, get ZWE. He recently swapped into ZWP since he wants foreign currency exposure.

HOLD

This is the best way for high dividend seekers to get exposure outside of North America. During covid, we saw high dividend payers sell off more than others. As the economy rebalances, the stock should do well. He boosted exposure to this sector.

BUY

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. A good fund for those looking for European exposure. There, the valuation is cheaper than in North America. A bet on a global growth recovery. Unlock Premium - Try 5i Free

COMMENT

He owns both. Timing is the question. The hedge between the foreign currency and the Canadian dollar. Looking at the Euro-Canadian exchange rate, below 1.50 Euro-Cad, you want exposure to ZWP. Over 1.60, you want ZWE. He is wanting more exposure to the Euro and the British pound, so he is moving towards ZWP.

HOLD

It has a very strong yield, partly capital gains. Today things have changed. Covered calls are very good in a flat to slightly rising environment. Covered calls impair the upside of the underlying securities. If you are expecting a rally, like today, you may want to reconsider, although you get a very nice yield here. He prefers the hedged versions of ETFs right now.

PARTIAL BUY

Pays an 8.25% dividend. It writes calls and has a currency hedge on the CAD-Euro exchange rate. It can do well in coming years. We're in a cyclical bounce, coming from the ashes of Covid. But there are other BMO ETFs that aren't hedged without covered calls, and are more cyclically oriented. But if you want income, this ETF will do well in coming years.

BUY

In general, the dividend is stable in the current situation. Because volatility is increasing, the covered call is increasing yield. It is one of his favourite ways to play international dividends. ZWP would be for the short term when you want exposure to the currency.

COMMENT

A play on high dividend players with a covered call in Europe. ZWP has exposure to the Euro while ZWE does not. One of the holding is SWP, which is the German stock that took a beating today. Dips are good to buy and for now, he prefers ZWP for the foreign currency exposure.

DON'T BUY

If Europe comes out of the pandemic faster than the rest of the world, it will do well. But Europe is a value play, so not his favourite space. You give up growth on the covered call. Yield around 8%.

BUY

Great dividend payers, focused in UK, Germany and Switzerland. ZWE has an additional forward contract that hedges the canadian dollar to the pound, euro and swiss franc. He prefers ZWE for the currency hedge.

COMMENT

International dividend growth ETF. He uses CYH as a benchmark. It is a global dividend index using the Dow-Jones methodology that is currency hedged. In the US, there is NOBL for dividend growth companies. Globally, he would look at ZWE for yield enhancement.

WEAK BUY

ZWE-T vs. ZWH-T. With covered calls, when you are in a slightly up or down or sideways market, the call brings in a premium and dampens the volatility. But when it is in a very strong uptrend, the covered write lops off the top of the uptrend. The upside is capped. In a sharp declined followed by a snap-back rally, the same thing applies. You should have both for covered write portfolios to increase diversification if you are going to have them.

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BMO Europe High Dividend Covered Call Hedged to CAD ET (ZWE.TO)