Opinions Richard Croft
BMO US High Dividend Covered Call ETFZWH.TOCOMMENTJun 15, 2017
Richard CroftUnknown
$20.73
Stock price when the opinion was issued
$26.75
As of Jun 05, 2026. Market Open.
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It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
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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
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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
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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
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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.
The High Dividend Covered Call means that the options on high dividend stocks are typically not very expensive, because the dividend tends to dampen the volatility of the underlying stock. Think of this as a tool where you are basically taking US stocks, collecting US currency risks, collecting dividends and collecting some Call premiums as well. Think of it as an income play. He would probably be more inclined to use the ZWB on Canadian banks, because he likes that sector.