BMO Europe High Dividend Covered Call ETF…

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BMO Europe High Dividend Covered Call ETF (ZWP.TO)

20.91

-0.04 (0.19%)

as of Jun 26, 2026, 7:59:30 pm Market Open.

66 watching

Investor Insights

Jun 27, 2026, 12:00 am

This summary was created by AI, based on 4 opinions in the last 12 months.

The BMO Europe High Dividend Covered Call ETF (ZWP-T) is favored by experts for its high dividends and potential for currency exposure, making it a strong consideration for Canadian investors looking for diversification. While ZWP is unhedged, allowing for additional exposure to the euro, ZWE is hedged to CAD and is recommended for those nearing retirement who might prefer a more stable approach. Experts point out that both ETFs hold identical securities, thus the decision between them hinges on investors' views regarding the CAD/euro exchange rate. Overall, while neither option is expected to yield significant growth due to the nature of covered calls, the substantial dividends offered present an appealing feature, especially when compared to alternative options like ZDI. These ETFs are also regarded as tax-efficient income sources in taxable accounts, enhancing their attractiveness for conservative investors.

Consensus

Positive

Valuation

Fair Value

Similar

ZDI

COMMENT

They are both identical. ZWP is not currency hedged. ZWE will hedge those currencies. Right now, he would want more exposure to a strengthening Euro than the CAD.

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BUY

He would prefer to have more exposure to the Euro so he would go with ZWP. However, both are good choices right now.

COMMENT

The difference between ZWE and ZWP is the currency hedge. If you think the CAD will do worse than European currencies, then you want a ZWP. If you think the CAD will strengthen against these currencies, get ZWE. He recently swapped into ZWP since he wants foreign currency exposure.

COMMENT

He owns both. Timing is the question. The hedge between the foreign currency and the Canadian dollar. Looking at the Euro-Canadian exchange rate, below 1.50 Euro-Cad, you want exposure to ZWP. Over 1.60, you want ZWE. He is wanting more exposure to the Euro and the British pound, so he is moving towards ZWP.

COMMENT

A play on high dividend players with a covered call in Europe. ZWP has exposure to the Euro while ZWE does not. One of the holding is SWP, which is the German stock that took a beating today. Dips are good to buy and for now, he prefers ZWP for the foreign currency exposure.

BUY

Currently Europe is probably fairly valued. As the economy ramps up and recovers, growth names might slow down and value names can start to outperform. Value is likely to outperform growth in the next 3-4 years. International markets are more suited to that than the US.

BUY

Great dividend payers, focused in UK, Germany and Switzerland. ZWE has an additional forward contract that hedges the canadian dollar to the pound, euro and swiss franc. He prefers ZWE for the currency hedge.

COMMENT

ZWP vs ZWE? Both of these give virtually the same exposure into European dividend payers with a covered call writing strategy overlayed. The SWE is currency hedged to the CAD dollar. You would want the currency hedged product if you think the foreign currency was going to weaken compared to the CAD. Today, with the Bank of Canada holding rates steady in Canada, he believes traders will see weakness for the CAD and so you may want to be un-hedged on the currency side (i.e. hold ZWP instead). He cautions that a covered call will pay a higher dividend (as it collects premiums by selling call options), but it tends to limit the upside. Yield 7%

WATCH

Exposure to the best dividend paying stocks in Europe with a covered call overlay. He hands down prefers these strategies and moves back and forth between currency hedge (ZWE-T) and not (ZWP-T). He has not bought any new exposure in these for the last year because of the market risk.

DON'T BUY

Outlook on Europe? His outlook on Europe is bearish though he believes in broad, global diversification. A covered call is good, because you receive the income from at least the call option. So, you receive a more stable upside and less likely downside. ZWP is a good way to play Europe, but he wouldn't go out of his way to play Europe now.

BUY

Don't put new money to work in equities. If you are doing it in Europe this is his favourite way to do it so you get the yield.

PARTIAL BUY

ZWE vs. ZWP One is hedged and the other is not. So, the solution is to buy each, 50/50. Check his top picks today, too.

DON'T BUY

There is price erosion. He is no longer buying or adding to this position.

COMMENT

ZWP-T vs. EDGF-T. We have high yielding stocks that generally have lower volatility and so have lower option premiums. The covered writing does not add much value.

BUY

Most BMO covered call ETFs write options against half the positions. It's a yield pick-up plus the dividend. You get covered call options written against European stocks. If you believe the worst is over in Europe (which is debatable), this isn't a bad way to play Europe at all.

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BMO Europe High Dividend Covered Call ETF (ZWP.TO)