Covered Call US Banks ETF (ZWK.TO) Buy, Sell…

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Covered Call US Banks ETF (ZWK.TO)

29.39

+0.15 (0.51%)

as of Jun 19, 2026, 7:59:46 pm Market Open.

90 watching

Investor Insights

Jun 20, 2026, 12:00 am

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

Experts have mixed opinions about the Covered Call US Banks ETF (ZWK-T). While some appreciate the ETF's capacity for generating yield through covered calls and highlight the overall strength of US banks, particularly in the face of private credit risks, others express concerns about its composition, which is heavily weighted towards regional banks rather than large-cap banks. Many analysts suggest that investing directly in individual stocks, especially larger banks, could yield better total returns compared to this ETF. Additionally, there are concerns regarding the potential trade-off of upside due to the covered call strategy employed by ZWK-T. Overall, while there is a belief in the potential stability and growth of US banks, many experts emphasize caution regarding current market conditions and timing, suggesting that the ETF may not be the best entry point at this time.

Consensus

Neutral

Valuation

Fair Value

Similar

BMO.TO

PAST TOP PICK

(A Top Pick Aug 03/21, Down 6%) Down with the market. High yield. In US banks, so he's very comfortable holding.

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BUY

Has done very well on yield and capital appreciation. Be aware that, since it holds US banks, dividend income is treated as regular income, not as dividend income, but the capital gains are still there. He's still buying it. Yield is about 5%.

BUY

USD ETF for a new investor. Canadian-listed but deals with the US as a covered call, yield is around 5%. There's also a USD version.

PAST TOP PICK

(A Top Pick Nov 09/20, Up 20%) The yield has done well, paying 6.5%. Owns it for many accounts. Still likes it. The covered calls are treated as capital gains.

BUY

ZWK vs. XLF vs. VFH Likes US banks. Equal weighted basket of large and regional banks. Will benefit when you see the economy recover, 6-12 months out, with lower loan losses, steepening yield curve. Yield about 6.9%, a combination of dividends and covered call options. Makes sense if you're in it for the income. XLF and VFH don't have the covered call, do have a lower expense ratio, and let you capture the upside from the underlying securities.

TOP PICK

An MER of 0.71% he owned this when Covid hit in March 2020 and stocks got hammered. The covered call would hinder the recovery of this ETF, so he sold ZWK. But as the S&P started to rise, he re-entered ZWK. Also, he bought this for the 8.5% dividend yield at the time. A screaming deal. He bought around $20. It still pays around 6%. He expects US banks to do well.

BUY

Likes the US bank sector. The covered call makes the banks more conservative; if banks go up, you have less upside, but if they go down, less downside. If you're in retirement, it's a perfectly fine ETF. We're in the early innings of a new credit upswing, consistent with an economic super-recovery. The banks will do well with curve steepeners.

COMMENT

There are two elements to covered call strategies. There is the underlying stocks, and then the option premium. Volatility will continue to be high for the next couple years. Premiums will remain elevated. FIE pays back a part of your money back. There are a couple different elements to consider.

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TOP PICK

Banks. It is a play on US banks. It has a about a 9.5% yield. It has a very broad segment of the US banks. He uses it as an income play. Banks in a zero rate interest rate environment have trouble making money but he does not see it as a that bi a risk.

COMMENT

Owns all the Canadian banks and you don't have to worry which one is going to lead. However, the US banks are also quite cheap relative to the Canadian banks.

COMMENT

Because of volatility spiking up to tremendous levels, the option premium income went up everywhere. From now till the end of the year, you can expect volatility. You can expect 2-3% of extra yield from option strategy than the underlying stocks.

DON'T BUY

A way to play US banks with a covered call. Similar to the ZEB for Canada. He's negative on banks because of covid and interest rates. He doesn't have any US or Canadian banks right now.

PAST TOP PICK

(A Top Pick Feb 14/19, Up 11%) He likes covered calls on US banks. Owns a lot of this.

COMMENT

He wouldn't buy the covered call. If you like American banks, buy them individually. He would rather buy ZBK which is a play on American banks without a covered call. Basically, you're paying a premium for covered calls..

COMMENT

Buying back covered calls to resell. Will often do that, when stock declines. If there's enough time value, he would wait. Time value drops quickly when close to expiry.

Showing 31 to 45 of 49 entries

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Covered Call US Banks ETF (ZWK.TO)