BMO US High Dividend Covered Call ETF…

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BMO US High Dividend Covered Call ETF (ZWH.TO)

26.75

-0.47 (1.73%)

as of Jun 5, 2026, 7:59:59 pm Market Open.

109 watching

Investor Insights

Jun 5, 2026, 12:00 am

This summary was created by AI, based on 1 opinions in the last 12 months.

The BMO US High Dividend Covered Call ETF (ZWH-T) is appreciated for its non-leveraged approach, focusing on well-known, stable household names. While the fund offers a yield ranging from 6% to 6.5%, the payout from US stocks tends to be modest. The primary returns on investment are derived from premium income generated through covered calls, highlighting a strategy centered on capital gains rather than high dividends. Since April, the fund’s performance has stalled, partly due to its lack of exposure to high-performing technology stocks that have dominated market gains recently. Investors should consider the risk of slower growth while valuing reliable income from a well-diversified portfolio of blue-chip stocks.

Consensus

Neutral

Valuation

Fair Value

Similar

VIG

BUY

Looking for a dividend-growth ETF in a TFSA. Depending on your age, you can put your riskier assets into a TFSA (except Bitcoin). ZWH pays a 5% yield with lots of growth.

BUY

ZWA-T Likes this, but prefers ZWH for its much-higher dividend yield. But it's okay to hold onto ZWA.

BUY

An S&P 500 ETF with a covered call overlay. He uses it a lot. Yield is about 6%.

COMMENT

Covered call overlay. If you think there is a sideways market then covered call ETFs do well as the income is much higher. He does not think we are entering a sideways market. There are better ways to pay the market. If you want to add bonds to your portfolio you'd want to invest in other bond ETFs.

TOP PICK

Yield is around 6 percent. Now that the markets are looking toppy, he likes it for the yield.

PARTIAL BUY

Loves it. These high-dividend names within this have been underperforming, namely financials. So a revaluation will help this. You don't need the covered call, because it limits the upside. Better to find this without the covered call.

BUY

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

WEAK BUY

A great long-term hold. This generates income. Bonds won't do this anymore with today's low rates. No, markets won't take off because there's so much uncertainty.

BUY

ZWE Some of the best dividend payers in the world with a covered call overlay are in ZWH which has some European exposure. This is excellent for defensive investors who rely on 5-7% yields to live. This lets you sleep at night. This won't eliminate the downside and won't increase as much as the rest of the market, but it is a steady payer. Cash? There's little yield there.

BUY

Don't hold this in a TFSA, because it pays in US dollars and you'll pay a withholding tax. Covered calls work well in this market, because the calls generate income if the stock stays flat or goes down. It's safe.

BUY

It's a good product, because it's conservative. The dividends will mute volatility, and there are covered calls on top of that. At least you make money on writing the call options. This offers a lot lower volatility than others in this space.

BUY

Nice yield. Fees are relatively high. He still likes it. based on higher yield stocks in the S&P500. Well diversified.

SELL ON STRENGTH

ZWH-T vs. ZPW-T. These are the more defensive holdings. ZPW-T is a little more risk adverse. He is looking to trim exposure on the ZWH-T side to move to ZPW-T at the moment.

COMMENT

Can you explain what a covered call strategy does? This strategy will invest in underlying stocks with high dividend in the US and over top of that they will be writing options to create ore income for the investor. This is great if you think that we will have sideways markets. This strategy is 71 basis points. Usually covered call strategies are little more expensive than direct ownership.

COMMENT

Are covered calls safe in a down market? Covered call righting only protects a very small amount of your capital -- it is only there to generate income -- it is not a hedge. He has sold ZWH-T as he does not want to sell covered calls in a recovering market as it has sold off the upside potential. He might just consider outright buying banks stocks at this point. In a flat market or rising market covered calls are a good strategy.

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BMO US High Dividend Covered Call ETF (ZWH.TO)