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

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BMO Covered Call Utilities ETF (ZWU.TO)

11.34

-0.02 (0.18%)

as of Sep 4, 2026, 7:59:57 pm Market Open.

403 watching

Investor Insights

Sep 4, 2026, 12:00 am

This summary was created by AI, based on 18 opinions in the last 12 months.

The BMO Covered Call Utilities ETF (ZWU) is viewed favorably by various experts, primarily for its ability to provide a stable income through a covered call strategy and its exposure to the utility sector, which is becoming increasingly significant amid rising power demand. Despite concerns about interest rate sensitivity, many analysts highlight ZWU's potential for defensive income, noting its attractive yield of approximately 6-8%. While some experts caution against concentrating investments in a single sector, they affirm that ZWU remains a solid choice for income-seeking investors looking for tax-efficient options. The ETF is recognized for its diversified holdings within utilities, telecommunications, and pipelines, suggesting a generally positive outlook, particularly with the growth of data centers and the ongoing demand for electricity in the U.S. Overall, the sentiment leans towards ZWU being a reliable component of a diversified portfolio, especially in the current economic climate.

Consensus

Positive

Valuation

Fair Value

Similar

XTC-T

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.

BUY

Loves the holding for investors seeking attractive yield on a diversified basis. It does have some risk like exposure to the pipelines. There are telcos and utilities as well in the ETF. A great diversified holding. As interest rates stay low, it can provide good yield with less volatility than the broader market.

BUY ON WEAKNESS

He hasn't added to his position, but for yield players, it is at an attractive level. This is one of his top pick of the week.

BUY

He likes the US dollar exposure. Overall, he is negative on the market in general. Balancing that with the government action, we probably won't get a sharp sell-off. He is positive on the defensive nature and the higher yield.

DON'T BUY

Looking for yield? He does not really like this one. Utilities, as a group are good. Covered calls are good, when used opportunistically. He likes calls as a tactical tool instead.

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BMO Covered Call Utilities ETF (ZWU.TO)