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.

152 watching

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

COMMENT

Hold? The underlying exposure is 22% financial services, 9% materials 3% real estate and industrials are 13%. This is pretty pro-cycle in its holdings. Right now you want to be owning more utilities and consumer defensive names. Be careful if there is another leg down. Wait until there this confirmation in a market recovery before buying more.

BUY ON WEAKNESS

Some of the best dividend payers in Europe with a covered call overlay. The market bottom is not in so wait to put in new money. This is not a bad level. He has not added to European dividend exposure yet.

COMMENT

ZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%

WATCH

Exposure to the best dividend paying stocks in Europe with a covered call overlay. He hands down prefers these strategies and moves back and forth between currency hedge (ZWE-T) and not (ZWP-T). He has not bought any new exposure in these for the last year because of the market risk.

COMMENT

Europe will probably trend higher. It's cheap, and Europe has outperformed NA. The central bank is being aggressive with lowering rates. European banks are different than American banks though and lend too much at a low rate. In the long term, he doesn't find Europe as exciting as North America.

PARTIAL BUY

ZWE vs. ZWP One is hedged and the other is not. So, the solution is to buy each, 50/50. Check his top picks today, too.

BUY

He continues to love this as the best way to play Europe. If you are playing BREXIT this is not the ideal way to play it. You want EWUS for that. ZWP-T is not his preferred way to play Europe.

COMMENT

He likes Europe a lot, dominated by stable companies like Nestle, HSBC and big pharma. Euro dividends are often much higher than here. He's not a fan of covered calls, but this is okay, but don't expect much growth from this ETF.

DON'T BUY

Europe is in recession already with many countries there in negative interest rates. ZWE is an excellent product, but now is not a good time to get into Europe. He's not talking only about Brexit, but all of Europe. At least the covered call makes you some money as Europe will go sideways, as he predicts.

WATCH

Great high dividend companies in Europe. He has been swapping ZWE-T into ZWP-T to get exposure to the Euro. He thinks the distribution is done after the withholding tax is deducted. Consult a tax advisor. He loves ZWE-T.

BUY

Dividend ETFs with a monthly dividend, covered calls and a high yield. They give you great exposure to great companies.

DON'T BUY

He's backed away from European investments because of the threat of a trade war there. Inclined to focus on Canadian utilities or ZWU for the US.

BUY

ZWU or ZWE Both are good defensive strategies. ZWE: He's not that bullish on Europe, but at least you get income from writing the covered calls here. ZWU: Utilities are much less volatile and more stable, yet expose you to Europe. If you belive in Europe and playing defence, then both ETFs are fine. These two ETFs are highly correlated, rising and falling together. Note that utilities are risk-off, not for you if you have long-term bullish.

HOLD

It yields around 7%. This requires a call on Europe. It has been recovering reasonably well since the new year. Germany has rebounded well, but there are some auto tariff uncertainties. Technically, it has been showing some support. As long as a recession is not forthcoming, it could be a good yield play.

BUY

He likes it. It over-weights the high dividend players. What is going on in Europe is astronomical right now.

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