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

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.