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Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

Experts believe that ZUT-T has outperformed ZWU with a return of 38% over 5 years, compared to ZWU's 13%. They also highlight that ZUT-T is an interest rate sensitive product that can be volatile, performing well if interest rates fall. However, they do not recommend it as a bond substitute. The consensus is that if one does not need the income, it's better to look at the underlying securities. The next few months are seen as a good time to add to this position, with a potential for strong performance if interest rates fall due to an economic hard landing.

Consensus
Positive
Valuation
Fair Value
Similar
AES, AES-N
COMMENT
ZUT vs. ZWU

Return of 38% over 5 years, whereas ZWU has a total return of only 13%. With covered calls like ZWU, you miss out on upside over time. The underlying securities of a covered call strategy often perform a bit better. So if you don't need the income, start looking at the underlying securities.

E.T.F.'s
BUY

Interest rate sensitive product that can be volatile. If interest rates fall, this product will perform well. Would not recommend as a bond substitute. Next few months are a good time to add to this position. If/when interest rates fall (economic hard landing) stock will do very well. 

E.T.F.'s
PAST TOP PICK
(A Top Pick Aug 15/22, Down 15%)

Utility volatility impacting share price with rising interest rates.
Trying to be conservative, but will hold shares.
Duration negatively impacting duration of cash flows.


E.T.F.'s
TOP PICK
These top picks are conservative calls due to the higher volatility of inflation and the markets. He often does not own the ETF's themselves but uses the underlying Futures market. Supply chain problems continue to add to the volatility. A utilities ETF is conservative since it gives reliable revenue streams, therefore higher cash flow and more resilience to global shocks.
E.T.F.'s
COMMENT

XUT is market cap, ZUT is equal weighted. ZUT gives you more exposure to smaller players. HOG gives you more pipeline and energy services business, which acts similarly to utilities. It also hedges you on the downside. Could be a compliment to the other utility ETFs.

E.T.F.'s
COMMENT

Utilities are good for yield seekers. Could look at ZWU with broader based with utilities + other dividend players as well as some US exposure. Overall, good for income.

E.T.F.'s
BUY
Renewables make up third of the fund. It gives a more growth profile for this ETF. It is not higher risk per se because they are still utilities. They will remain interest rate sensitive but rates shouldn't go up in the near future. Still a good buy and hold.
E.T.F.'s
PARTIAL SELL
Utilities have done well because of low interest rates, but this trend won't last forever. Take some profits of this is sheltered and reinvest in a broader ETF that covers the world to achieve growth. Utilities have had a great run, paying a decent dividend, but capital appreciation will be limited.
E.T.F.'s
BUY

ZWU-T vs. ZUT-T. ZWU-T includes non-traditional utilities and is a much broader way to play it. The pure utilities asset class is one of the most expensive equities on the planet. He prefers the broader diversification and the covered call overlay. ZWU-T is his preference.

E.T.F.'s
BUY
ZUT-T vs. ZWU-T. The ETF that does not write covered calls has done significantly better. He suggests buying both. You get very low premiums for calls in the utility space.
E.T.F.'s
BUY

An ETF for utilities. A great defensive sector with amazing performance lately. XUT-T is good, but 60% is in the top 4 holdings (inculding Fortis and Algonquin); 4% yield and 55 basis point cost. ZUT-T is more diversified and equal-weight. ZWU is also equal weight but does covered calls to create extra income, which sells future income for gains today; yields 6%. Given the strong performance of utilities in the past year, covered calls have lagged.

E.T.F.'s
COMMENT
ZUT-T vs. ZWU-T. As we go into a recession, bond rates are dropping. ZUT-T is an equal weight exposure to traditional Canadian utilities. ZWU-T includes telcos and pipelines. He is always more in favour of diversification.
E.T.F.'s
COMMENT

Prefers the BMO Covered Call Utilities (ZWU-T), which has US utilities as well, giving better diversification. The problem with utilities is that they are very, very interest rate sensitive.

E.T.F.'s
COMMENT

He likes the utility space, but about 2 months ago he reduced his exposure. Utilities are very good instruments for providing yield, and there is a strong demand. Some have had a real run, but he doesn’t believe this basket as a whole represents the growth opportunities that the multiple is trading at. He’d rather Buy individual stocks. His favourite is Emera (EMA-T).

E.T.F.'s
COMMENT

If your view is that utilities is going to be a good place to be in Canada for the foreseeable future, and you want to diversify away from energy and financials, it is a good holding. Be aware that some yields may not be sustainable for the long-term. Dividend yield of 4.1%.

E.T.F.'s
Showing 1 to 15 of 45 entries

BMO Equal Weight Utilities Index ETF(ZUT-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 1

Stockchase rating for BMO Equal Weight Utilities Index ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BMO Equal Weight Utilities Index ETF(ZUT-T) Frequently Asked Questions

What is BMO Equal Weight Utilities Index ETF stock symbol?

BMO Equal Weight Utilities Index ETF is a Canadian stock, trading under the symbol ZUT-T on the Toronto Stock Exchange (ZUT-CT). It is usually referred to as TSX:ZUT or ZUT-T

Is BMO Equal Weight Utilities Index ETF a buy or a sell?

In the last year, 1 stock analyst published opinions about ZUT-T. 1 analyst recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO Equal Weight Utilities Index ETF.

Is BMO Equal Weight Utilities Index ETF a good investment or a top pick?

BMO Equal Weight Utilities Index ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Equal Weight Utilities Index ETF.

Why is BMO Equal Weight Utilities Index ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BMO Equal Weight Utilities Index ETF worth watching?

1 stock analyst on Stockchase covered BMO Equal Weight Utilities Index ETF In the last year. It is a trending stock that is worth watching.

What is BMO Equal Weight Utilities Index ETF stock price?

On 2024-07-22, BMO Equal Weight Utilities Index ETF (ZUT-T) stock closed at a price of $20.4.