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

BMO finds the best European dividend payers spread across many countries and sectors, then write a covered call overlay. It pays a dividend over 6% and has kept it very well with markets. It's his favourite way to play Europe.

ZWC vs. ZWE vs. ZWU. ZWC has a lot of the good dividend payers with a covered call overlay. ZWU is lower risk than ZWC, as it doesn’t have exposure to energy and financials. If interest rates go up in a big way, ZWU will underperform, and could easily go down 3-5%. The dividends for these are safe. ZWU is attractive from a defensive standpoint. ZWE has exposure to the 3 biggest country markets, very few financials, a currency hedge, little Italy exposure. It could fall 5-7% in the next months, and then it would be a pretty decent buy.

A way to play European market and has covered calls. Neat thing is it has a 5-6% yield. Conservative way to play Europe, though limited upside because of the covered call.

This is the best quality of dividend payers, pan-Europe. They are diversified around Europe. He likes the exposure and is probably the single largest holder. It yields a little more than 6% with the covered call overlay and it has a currency hedge also.

He likes this and is the best way to hold Europe. He is looking to add more on weakness. You get the currency hedge. It is his biggest international exposure in all the funds he manages.

It is his favourite way to play Europe. It is yielding 6%. It holds the highest quality dividend paying companies. He may reconsider it in 6 months.

High dividend covered call strategy. It is his favorite way to play Europe right now. It is diversified across sectors. For the next couple of years there will not be a lot of upside on these stocks, and then we are due for an equity market correction. It is the best way to hold Europe for now.

Return of Capital – Good or Bad. If you get your own money back they can boost the yield and distribution. As new people come into the fund, they want to keep the distribution the same for everyone. This latter kind is not a bad return of capital.

XAW-T vs. XEF-T. XAW-T is an all world ETF with broader exposure. His favourite way to play international is good quality, high dividend paying stocks in Europe with a covered call overlay. ZWE-T is his choice.

He likes Europe, though earnings momentum is starting to flatten compared to the U.S. Here, you own high-dividend stocks in Europe, then put a covered call and pick up some more income while it's hedged to CAD. Because has risen against CAD, you're better off owning an un-hedged version of this strategy. It's better to own the underlying security instead of a covered call like this to earn a better return. Best to own a covered call in a flat or sideways market.

His favourite way to play Europe. France, Germany and The UK are the highest holdings. It still gives you the yield even though the price has dropped off. He would like to buy more if it drops another 10%.

You get 6-7% return. It holds European dividend stocks with a covered call strategy. The risk is market risk but you can feel fairly safe with this one. He bought last week during the weakness.

(A Top Pick June 30/17 - Down 5.2%.) A way to enter Europe with a good yield (6 or 7%). He has been in and out of Europe several times. Always disappointed with the returns. Good ETF.

(A Top Pick May 11/17. Up 4%.) This one has a very high yield. If you want to play Europe in a conservative way, this is a way to go.

(A Top Pick June 30/17. Up 3%.) One of the main attraction is the covered call. It’s an income generating ETF. It’s Europe so you get the dividend as income and covered calls are capital gains. They don’t do full 100% coverage on the underlying assets, they do 50-60% depending upon what they see the market doing.