Opinions John Hood
BMO US High Dividend Covered Call ETFZWH.TOWATCHJan 18, 2016
John HoodOwned
$19.65
Stock price when the opinion was issued
$26.75
As of Jun 05, 2026. Market Open.
0
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
You might be interested:
TOP PICK
Main thing is it's not leveraged. Holds all the big, household names. Dividends are small on US stocks, so most of the premium you're getting is from the covered calls which are capital gains. Hasn't come back from April because it doesn't have all the super-charged tech stocks. Yield is around 6-6.5%.
John HoodOwned
0
TOP PICK
Likes it as a sector play--high-dividend US stocks--and for the dividend of 6%. It's broadly based, and bonds don't pay much or anything.
John HoodOwned
0
COMMENT
There is space for these ETFs for yield seekers. One of the challenges in 2020 was that dividend paying stocks did terrible relative to technology that does not pay dividends. Still likes them for conservative investors.
Larry Berman CFA, CMT, CTAUnknown
0
WEAK BUY
ZWE-T vs. ZWH-T. With covered calls, when you are in a slightly up or down or sideways market, the call brings in a premium and dampens the volatility. But when it is in a very strong uptrend, the covered write lops off the top of the uptrend. The upside is capped. In a sharp declined followed by a snap-back rally, the same thing applies. You should have both for covered write portfolios to increase diversification if you are going to have them.
How will this react when the Cdn$ starts to rise? He likes this question because it will have an effect. This ETF really didn’t do anything because of growth, it only made money because of currency. It is basically higher yielding S&P stocks. When there is an appreciation in the Cdn$, this could get hurt. He is not buying this now.