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

BMO Covered Call Utilities ETF (ZWU.TO)

11.04

+0.03 (0.27%)

as of Oct 15, 2026, 1:42:08 pm Market Open.

403 watching

COMMENT

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

COMMENT

Likes Europe better. When not investing in Canada, you don't get the dividend tax credit. In a taxable account, would focus on ZWU since it has favourable tax treatment. In a registered account, he has been allocating to international companies since dividend is better.

BUY

Utilities are capital intensive and has debt on their balance sheets. If inflation is going to push interest rates up, it would hurt margins, off-set by their regulatory ability to increase yield and income. You get some inflation protection. A great dividend player.

BUY

For income in retirement account. Would prefer ZWU to HHL. If markets correct over the next few quarters, there will be more correction in HHL. Likes both and are both buys in pull backs.

BUY

For income in retirement account. Would prefer ZWU to HHL. If markets correct over the next few quarters, there will be more correction in HHL. Likes both and are both buys in pull backs.

BUY

Utilities are a natural place to go to diversify with lower risk. Rate sensitive. Has BCE, Telus, telcos as well as pipelines on top of utilities. Will consistently return 6% to investor with limited volatility.

COMMENT

Utilities don't function that well in a reflationary trade. They will do well in a deflationary time with uncertainty. This sector will not respond well at this time. The covered call writing is not a terribly thing at this time. You take advantage of it. The premiums are rather small, however since the stocks are not that volatile. For 5 to 10 years this is a wonderful idea.

BUY

A covered called strategy. Utilities, telecos, and some pipelines. There are different elements of utility type stocks. Interest rate sensitive. Has high dividend payers. With market volatility likely to be elevated, the premiums will remain decent.

COMMENT

The caller requested suggestions for higher dividend ETF. There's a number of ways to play it. Go to an ETF website to see which ETF fits your profile. Covered calls provide higher dividends.

COMMENT

There are two elements to covered call strategies. There is the underlying stocks, and then the option premium. Volatility will continue to be high for the next couple years. Premiums will remain elevated. FIE pays back a part of your money back. There are a couple different elements to consider.

COMMENT

There is space for these ETFs for yield seekers. One of the challenges in 2020 was that dividend paying stocks did terrible relative to technology that does not pay dividends. Still likes them for conservative investors.

COMMENT

Relatively stable players. Would prefer ZWU for yield seekers who want exposure to these stocks. A good way to extract yield from markets. BCE is probably around $60-$65. At around $55 a buy that pays a nice yield.

COMMENT

It is wages that ultimately cause inflation. This ETF has utilities and so is very interest rate sensitive. If interest rates creep up, this will lag a little.

BUY

It is not a replacement for fixed income since there will be equity market volatility. However, it yields around 7% and is a sort of proxy for low bond rates.

BUY

They increase the yield on utilities with covered calls. It is not a bad place to be. You are always subject to the underlying securities' risks. It is probably a good choice right now.

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BMO Covered Call Utilities ETF (ZWU.TO)