BMO Europe High Dividend Covered Call Hedged…

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

22.13

-0.08 (0.34%)

as of Sep 4, 2026, 7:59:59 pm Market Open.

152 watching

Investor Insights

Sep 4, 2026, 12:00 am

This summary was created by AI, based on 10 opinions in the last 12 months.

The BMO Europe High Dividend Covered Call Hedged to CAD ETF, ZWE-T, is drawing positive attention from experts who appreciate its balanced approach towards income and potential growth. Many believe it offers an attractive high dividend yield, enhanced by covered call strategies. Experts highlight the growing fiscal measures in Europe and the potential for a shift in trade relationships, making international investments valuable. While the ETF is better suited for registered accounts due to the tax implications of foreign dividends, it is contrasted with other ETFs like ZWU and ZWP, with ZWE-T being favored for its hedging against CAD. There is a general consensus that this investment provides a good diversifying opportunity in a different economic environment, though investors should be mindful of the limitations on growth due to the nature of covered calls.

Consensus

Positive

Valuation

Fair Value

Similar

QYLD

SELL

ZWE-T vs. ZWP-T. He sold most of his ZWE-T to purchase ZWP-T, which is the same thing except he gets more exposure to the British pound and Euro. He prefers that exposure as we get close to the end of BREXIT. He is vastly underweight Europe generally.

PAST TOP PICK

(A Top Pick Feb 09/18, Up 5%) Sold off most of its position, because of Europe. Riots in Paris. Italy is bordering on its debt problems.

COMMENT

ZWE vs. ZWP Both are similar, the difference being the CAD currency hedge in ZWE. Also keep in mind that there's a covered call overlay on these ETFs. IF you need a lot of yield, certainly both are valid. He thinks the CAD-Euro will be neutral for a while. Perhaps buy a mix of the two.

BUY

Is it good for income? - Some of the most famous consumer brand names. Dividend is quite high and safe. All these big companies are selling to emerging markets more than Europe. That is why he likes it.

DON'T BUY

This shorts volatility in the markets--and a portfolio drag in the long-term. You'll underperform in a strengethening market. He's not a fan of covered writing. 6.7% yield.

DON'T BUY

This was a great holding, paying 7% yields, when the market was going well. He sold his holding because he did not see good things for Europe markets.

HOLD

You need geographic diversification in a portfolio, but ZWE and Europe are in a tough space, so hold. Also, this is a covered call and hedged to the Canadian dollar. It depends on how large your position of ZWE is in your portfolio. Europe has problems short-term with the ECB with a $5.3 trillion balance sheet and are exiting quantitative easing. There are some real issues there. He wouldn't bet on Europe.

PARTIAL SELL

It is the best way to play Europe if you need yield. The market should stabilize and bounce into the first quarter, but the bear market is well underway. You should diversify part into the US and into utilities.

DON'T BUY

Buying a basket of European stocks. Europe is not a space he likes. 1.5% annualized growth for the next couple of years. He prefers a similar covered call strategy but with US based companies.

WEAK BUY

He'd play Europe this way. Pays a good 6% dividend. But Europe is such a morass with Brexit and ultra-nationalism in other places. He can't get excited about Europe.

COMMENT

ZWE-T vs. ZWU-T vs. ZWB-T. A 100% stake in anything is generally a bad idea. These three give you 2/3rds of your portfolio seeking dividends in Canada. He would add ZPW-T for US put writes. ZWH-T would give you a broader exposure. He would underweight Canada.

BUY

[Are the dividends safe?] BMO in their screen looks at the leverage ratio of the companies to see if they will be stressed in terms of paying their dividends. It is still a good holding.

BUY

ZWE-T or ZWP-T. European market. Covered calls. You get less upside participation but get a higher yield. ZWE-T is currency hedged and ZWP-T is not.

BUY

Likes this. He'd buy this if he were playing Europe. But diversify with, say, ZWU, which does covered call for utilities and has expanded beyond Canadian utilities into the U.S. Also look at ZWA and ZWH for further diversification. He likes all these covered calls. The fees are high, but he has seen first-hand the added value these products give.

COMMENT

The consensus is very negative on Europe. It would tend to overweight the classical defensive sectors and on top of that they are selling calls. If you are betting on the recovery of Europe, you wouldn’t want to use this. He prefers a purer play on Europe.

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