BMO Covered Call Utilities ETF (ZWU.TO) Buy,…

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BMO Covered Call Utilities ETF (ZWU.TO)

11.81

+0.09 (0.77%)

as of Jul 3, 2026, 7:59:59 pm Market Open.

402 watching

Investor Insights

Jul 6, 2026, 12:00 am

This summary was created by AI, based on 19 opinions in the last 12 months.

The BMO Covered Call Utilities ETF (ZWU) is viewed positively by various experts, primarily for its ability to provide a stable income through its covered call strategy, offering a yield of approximately 6-8%. Analysts appreciate its diversification across utility stocks, telecommunications, and pipelines, suggesting it serves as an effective defensive investment, particularly in uncertain market conditions. While there are concerns regarding interest rate sensitivity, many experts emphasize the favorable growth prospects in the utility sector driven by increasing power demands, especially in the context of technology like data centers. The consensus among investors indicates that ZWU is a solid option for income seekers, although they recommend not allocating an entire portfolio to this single ETF. Overall, the utility sector is seen as having significant tailwinds, making ZWU a compelling part of a diversified investment strategy.

Consensus

Positive

Valuation

Fair Value

Similar

BCE

TOP PICK

This is Covered Calls on utility stocks and pays a monthly income anywhere between $0.085 and $0.09 a share and that is coming to you as capital gains and/or dividends. Yield is about 7% annually.

COMMENT

Are covered Call ETF’s any good, will they fluctuate or be fairly steady? For many people in reasonable doses makes some sense. Doesn’t love or hate covered call ETF’s. The income that you get from covered calls is regular taxable income and taxable at your top marginal rate. If there’s a big run up, you forgo some of that gain.

BUY

Likes this as they only write options on a portion of the portfolio. Premium on top of the dividend is typically a high dividend paying stock. This combination gives you about a 7.5%-8% return.

DON'T BUY

Covered Calls seems to be the flavour of the day. There are Covered Calls on any index you want because that is what everybody wants these days. In reality, Covered Calls work extremely well in markets that are trendless. Doesn’t believe these Covered Calls will be able to maintain their dividend. See's volatile decreasing in the market. He would recommend a basket of dividend paying stocks such as iShares International Fundamental ETF (CIE-T) and iShares BRIC ETF (CBQ-T).

COMMENT

Markets for the past 75 days or so have been moving sideways. If you don't believe there is a great deal of direction going forward, utilities are good way of a) minimizing volatility and b) when you lay a covered call strategy on top of that, you minimize volatility even further. This is one of the most conservative ETF's you can get.

BUY

Covered Call Utilities ETF. Likes this one. What they do is right Calls against individual stocks, not against the index. He uses it for some of his smaller accounts where he can't adequately diversify among 3 or 4 different covered individual bank stocks. You have to realize that if the yield is 8%, that is not what you are going to get.

DON'T BUY

Covered Call Utilities ETF. Covered Call strategy is very popular these days but is getting crowded. Basically it says that if the market trades sideways and with all the volatility in the market, can you not make money off that volatility. To do this they go long the stock but write covered calls against it. You underperform if the market goes really down or goes really up. Over the next 2-3 years we should see a better equity market.

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BMO Covered Call Utilities ETF (ZWU.TO)