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

BMO Covered Call Utilities ETF (ZWU.TO)

11.00

-0.01 (0.09%)

as of Oct 15, 2026, 2:10:48 pm Market Open.

403 watching

DON'T BUY

Holds pipelines and telcos, plus an overlay of 8.3% dividend. Lots of cash flow, but utilities won't be the best performer if the economy grows. For income, this is great, but not the best for a total return. Covered calls aren't good in rising markets.

BUY

Price not reflective of yield also included in shares. Yield seeker that will give 6-7% return. Less volatility than other dividend payers. Will include utilities and pipelines.

BUY

He has recommended this. When there's uncertainty over inflation, utilities are attractive given steady revenues. Selling covered calls adds income. This won't shoot the lights out, but won't shoot you in the foot. Solid for retirees. Most returns come from dividends, not capital appreciation.

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Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O’Reilly An ETF holding utility, telecom and pipeline companies, which enhances distributions through the use of writing covered calls. A defensive portfolio of holdings with a good yield. Its holdings are about 2/3 Canadian and the rest US. We recommend setting a stop loss at $9.50, looking to achieve $14.75 – upside potential of 30%. Yield 8.5%

BUY

If underlying stocks are cutting dividends, then ETF will fall. Not seeing dividends being cut anywhere. Would recommend for a defensive investment.

BUY

Great ETF that has exposure to utilities, telco's and pipelines. Dividend rate sensitive to inflation. High dividend yield at 7%. Basket of Canadian dividend paying companies. Would be good for a portion of the portfolio (not 100%).

COMMENT

What is the tax treatment of this, yield or capital gains? Yes, some will be capital gains, some dividends. Your tax slip will break down the tax categories.

BUY

Includes names in Canada and US. Dividend plus a premium. Pipeline names and telcos. Good ETF from someone who wants a high level of income, though not necessarily for growth. Yield about 7.6%.

BUY

A great strategy for low volatility investors. Any price below ~$12 is a good buying opportunity. High dividend yield, with low risk.

BUY

Great way to get lower volatility and lower risk exposure to markets. Recent weakness due to hit to energy markets. Like it a lot bellow $12.5. Good buying opportunity on this dip.

BUY

Note that these aren't your typical utilities, but also pipelines like TransCanada, BCE and Verizon. Holds defensive, dividend players. Pays a 7.5% dividend yield. Holds safe, low-beta names. Likes it. It has performed well, down less than 1% YTD in today's market.

BUY ON WEAKNESS

Good for dividend portfolio? Love it. Don't own it right now to reduce exposure to energy and pipelines. 13 / 12.5 area really attractive. If you need the dividend, no reason to sell it now.

BUY

Yield is really high, around 7%. Remember that, for utilities, because prices are regulated by government, they can't respond as well to rate increases, and so they tend to underperform markets. When you put a covered call overlay on them, it reduces the upside a bit, but half of it is not covered.

COMMENT

Holds non-traditional utilities like Canadian pipelines, plus BCE and Telus, Verizon, US pipelines. Covered call can boost income up to 7% here. When markets move higher, covered calls lag. Does really well in a flattish market, compared to owning the underlying securities. Good for people who want income, not necessarily looking for the capital gain.

BUY

A way to extract yield from the markets without too much risk. Has always recommended for income.

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BMO Covered Call Utilities ETF (ZWU.TO)