Richard CroftBMO US Hi Div Cov Call Hdgd to CAD ETFZWS.TODON'T BUYJul 03, 2019
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.
Note that as a Canadian, you receive the worst tax treatment. Consder which account you will hold this in. He loves the idea of foreign stock with a covered call overlay. He likes ZWS.
BMO has the biggest suite of covered call strategies around the world. For US high-dividend covered-call strategies, ZWS or ZWH are really good (one hedged, one not).
ZWA-T vs. ZWS-T. ZWA-T is the Dow 30 with a covered call overlay. ZWS-T is a broader ETF with 50 holdings, much more diversified and just the DOW index and it also has a covered call overlay. He would prefer ZWS-T. He is looking at buying a lot more of this one.
Contains many good companies including utilities and consumer staples. Just collect the dividend, though you don't need the covered call portion on this. Look for a BMO ETF that's unhedged without the covered call aspect, instead.
Do you recommend ZWS as a hedged covered call or prefer something else, and would you hold it at the only US equity in a portfolio? To answer the latter, no. And he prefers SPY-N as your core holding; it pays you yield and cash flow, becuase it holds high-dividend stocks and sells covered calls against them. Also, US dividends are taxed in Canada and don't benefit from the dividend tax credit.