BMO Covered Call Utilities ETF (ZWU.TO)

He has a full position. It is a great holding. The covered call gives you an enhanced yield. He would look to sell if it went over $15.

He likes this. Remember that utilities are a little bit like REITs and are interest sensitive. However on this one the indicated yield was about 6% including covered calls and dividends. He would be a little bit on the cautionary side when interest rates start to move, but in the interim buy it.

Caller was at 10%. He feels this is okay for an ETF and so the caller should not add to or reduce his position.

Covered Call Utilities. Loves it as part of a holding. Has a 6-7% position. Utilities, telcos and pipelines, 20% in the US. Not without risk. It is interest rate sensitive. 5.5-6% yield.

Has been a good name to own. The Covered Call nature helps mitigate an “interest rate hike” risk. The only concern that he has is that it is about 35% energy, and that is always going to cause a little bit of grief. Believes this has both Canadian and US exposure, and this is probably a good entry point.

Utility stocks are the lowest end of the spectrum in terms of volatility. There is some energy exposure so this one really isn’t a risk free dividend. It will be less volatility than pure energy. We should have a bottom in the energy sector in the next couple of months.

(A Top Pick June 7/13. Up 13.53%.) This got hit when there was the tapering tantrum, but has come back quite nicely. Has a fairly reasonable yield if you are looking for that. Prefers ZLB-T. The Call aspect, where they get called away in a rising market, has not helped their earnings at all.

As long as you understand how covered calls work i.e. they limit your upside. It has been a great performer. 5.7% dividend yield.

As equity-based products go, this is a pretty conservative one. It is diversified, so that makes it conservative, but utilities are conservative because you have a steady income stream. You also have the covered call overlay which gets you the income of covered calls. If things go up a lot, you get called away. A good, steady sort of thing to use for people who want growth, but are still conservative in trying to get it.

Telcos and pipelines. Some US utility exposure and a covered call overlay. Telcos are about 15%.

Covered calls work where a stock doesn’t move much, so this is a great opportunity for covered calls.

Likes this because it is a Covered Call situation. Utilities did get beaten up. This is something that he would like to have as part of his income side of a portfolio. Yield of 6.25%.

It is down because when Fed started talking about tapering, everything interest sensitive went down. It had nothing to do with covered call strategy. 6.5% yield.

A covered call ETF on utility stocks. Has not done particularly well because utility companies tend to be interest-rate sensitive. As interest rates rise, a lot of the utility companies tend to go down because they tend to be supported by the dividend. Yield of 6.32%.

This is good for a senior because utilities tend to be low volatility. The Covered Call provides income. As discussed in previous shows, the upside is taken away somewhat by the risk of being called away. But, the downside is also muted because you are getting the income from writing the Call Options, even if the underlying security is dropped.