BMO Equal Weight Utilities Index ETF

ZUT-T

Analysis and Opinions about ZUT-T

Signal
Opinion
Expert
PARTIAL SELL
PARTIAL SELL
September 30, 2019
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.
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.
Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$19.340
Owned
Unknown
BUY
BUY
September 16, 2019

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.

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.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$18.960
Owned
Unknown
BUY
BUY
September 5, 2019
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.
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.
Mike Philbrick
President, ReSolve Asset Management
Price
$19.000
Owned
Unknown
BUY
BUY
June 25, 2019

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.

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.

Mike Philbrick
President, ReSolve Asset Management
Price
$18.730
Owned
Unknown
COMMENT
COMMENT
December 10, 2018
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.
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.
Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$16.560
Owned
Unknown
COMMENT
COMMENT
June 30, 2017

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.

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.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$18.250
Owned
Unknown
COMMENT
COMMENT
September 27, 2016

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).

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).

Kash Pashootan
CEO & Chief Investment Officer, First Avenue Investment Counsel
Price
$16.800
Owned
No
COMMENT
COMMENT
September 20, 2016

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%.

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%.

Tyler Mordy
President & CIO, Forstrong Global Asset Management
Price
$16.790
Owned
Unknown
COMMENT
COMMENT
July 11, 2016

A few stocks are responsible for most of the movement in the valuation. This ETF offers diversification, unless you have some special talent for picking the best stocks of the sector. If you have only a few of the stocks, then you are more subject to volatility. This is an equal weighted ETF and he likes it for that reason.

A few stocks are responsible for most of the movement in the valuation. This ETF offers diversification, unless you have some special talent for picking the best stocks of the sector. If you have only a few of the stocks, then you are more subject to volatility. This is an equal weighted ETF and he likes it for that reason.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$16.950
Owned
Unknown
BUY
BUY
February 26, 2016

Tracks the Canadian Utilities sub index. It is conservative and not as volatile as the rest of the market. Diversify the risk away from owning one utility.

Tracks the Canadian Utilities sub index. It is conservative and not as volatile as the rest of the market. Diversify the risk away from owning one utility.

John DeGoey
Portfolio Manager, Wellington-Altus Private Wealth Inc.
Price
$14.380
Owned
Unknown
COMMENT
COMMENT
February 16, 2016

On utilities, he prefers the BMO Covered Call Utilities (ZWU-T), because of the covered call. It will not only get you a better yield, but will also take out a little bit of the volatility.

On utilities, he prefers the BMO Covered Call Utilities (ZWU-T), because of the covered call. It will not only get you a better yield, but will also take out a little bit of the volatility.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$14.410
Owned
Unknown
COMMENT
COMMENT
February 8, 2016

ZWU-T vs. ZUT-T. ZUT-T is equal weight utilities in Canada. ZWU-T is 80% Canada and utilities also include pipelines and telcos and it has a covered call overlay. He prefers this because it is more diversified and has the covered call overlay.

ZWU-T vs. ZUT-T. ZUT-T is equal weight utilities in Canada. ZWU-T is 80% Canada and utilities also include pipelines and telcos and it has a covered call overlay. He prefers this because it is more diversified and has the covered call overlay.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$15.390
Owned
Unknown
TOP PICK
TOP PICK
January 25, 2016

It is equal weight so you get a little more torque. It boosts the income portion of your portfolio. The relative performance has been pretty good. About 5% yield. We have support here.

It is equal weight so you get a little more torque. It boosts the income portion of your portfolio. The relative performance has been pretty good. About 5% yield. We have support here.

Bill Carrigan
Technical Analyst, Getting Technical Info Service
Price
$14.120
Owned
Yes
WEAK BUY
WEAK BUY
June 1, 2015

Stock vs. stock. ZUT-T vs. ZEB-T. Both give you around a 4% yield. Banks have outperformed the past year. He would prefer ZWU-T for playing utilities. He would get Utilities AND Banks.

Stock vs. stock. ZUT-T vs. ZEB-T. Both give you around a 4% yield. Banks have outperformed the past year. He would prefer ZWU-T for playing utilities. He would get Utilities AND Banks.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$15.660
Owned
Unknown
BUY
BUY
December 12, 2014

Canadian utility ETF? There are 2 of them. One is the BMO Equal Way Utilities Index CAD (ZUT-T) and the other is with iShares. He prefers this one because they are writing covered calls and can generate a little bit more income.

Canadian utility ETF? There are 2 of them. One is the BMO Equal Way Utilities Index CAD (ZUT-T) and the other is with iShares. He prefers this one because they are writing covered calls and can generate a little bit more income.

Jaime Carrasco
Portfolio Manager, Canaccord Genuity
Price
$14.680
Owned
Unknown
COMMENT
COMMENT
July 18, 2014

Allow Puts to be bought for protection? This could be an interesting idea, but the problem is that this ETF doesn’t have options. What you could do to protect gains is to just put in a Stop order.

Allow Puts to be bought for protection? This could be an interesting idea, but the problem is that this ETF doesn’t have options. What you could do to protect gains is to just put in a Stop order.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$15.430
Owned
Unknown
DON'T BUY
DON'T BUY
January 14, 2014

Unfortunately, when interest rates are rising, utilities tend not to do well because they will not raise their dividends as fast as a bank would. Wouldn’t expect this one to do much of anything.

Unfortunately, when interest rates are rising, utilities tend not to do well because they will not raise their dividends as fast as a bank would. Wouldn’t expect this one to do much of anything.

Terry Shaunessy
President & portfolio manager, Shaunessy Investment Counsel
Price
$14.650
Owned
Unknown
DON'T BUY
DON'T BUY
December 31, 2013

Down about 4% on the year, hurt by interest rate environment. Utilities are a relatively small part of the Canadian stock market. It will be hurt with the rate hike.

Down about 4% on the year, hurt by interest rate environment. Utilities are a relatively small part of the Canadian stock market. It will be hurt with the rate hike.

John DeGoey
Portfolio Manager, Wellington-Altus Private Wealth Inc.
Price
$14.410
Owned
Unknown
COMMENT
COMMENT
August 26, 2013

It is getting down to the point where it is just getting interesting. At some point they and REITs get interesting.

It is getting down to the point where it is just getting interesting. At some point they and REITs get interesting.

Mike S. Newton, CIM FCSI
Director & Portfolio Manager, Scotia Wealth Management
Price
$13.700
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
June 13, 2013

(A Top Pick April 5/13. Down 2.96%.) There is kind of a tendency for this to move between $15 and $16 and has a big dividend of about 5%. Doesn’t think this indicates a disaster in the making, so he has not sold his holdings.

(A Top Pick April 5/13. Down 2.96%.) There is kind of a tendency for this to move between $15 and $16 and has a big dividend of about 5%. Doesn’t think this indicates a disaster in the making, so he has not sold his holdings.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$14.650
Owned
Yes
PAST TOP PICK
PAST TOP PICK
May 3, 2013

(Top Pick Apr 5/13, Up 3.08%) Defensive. Somewhere to hide out. He will hold it.

(Top Pick Apr 5/13, Up 3.08%) Defensive. Somewhere to hide out. He will hold it.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$15.570
Owned
Yes
BUY
BUY
May 1, 2013

Utilities have done really well up until this point. People have been rushing in to try to get yield. Not a bad spot to be hiding in right now. The real strength of utilities comes up later on in July but the chart shows good support at around $15.

Utilities have done really well up until this point. People have been rushing in to try to get yield. Not a bad spot to be hiding in right now. The real strength of utilities comes up later on in July but the chart shows good support at around $15.

Brooke Thackray
Research Analyst, Horizons ETFs (Canada) Inc.
Price
$15.530
Owned
Unknown
DON'T BUY
DON'T BUY
April 25, 2013

Got battered by Atlantic power. Prefers ZWU-T, which had covered calls on the individual utilities.

Got battered by Atlantic power. Prefers ZWU-T, which had covered calls on the individual utilities.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$15.370
Owned
Unknown
BUY WEAKNESS
BUY WEAKNESS
April 22, 2013

Everyone wants the safety of, and higher dividend of, this sector. It is not a growth sector because of regulation. He thinks it is very expensive in this sector right now and will stay that way because of the preference for dividends. Likes the idea but it could be weaker in the short term, in which case accumulate.

Everyone wants the safety of, and higher dividend of, this sector. It is not a growth sector because of regulation. He thinks it is very expensive in this sector right now and will stay that way because of the preference for dividends. Likes the idea but it could be weaker in the short term, in which case accumulate.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$15.220
Owned
Unknown
TOP PICK
TOP PICK
April 5, 2013

13 positions. Two have been real headliners. Both were decimated. The rest of the companies are high quality holdings. In the summer utilities tend to do ok as well.

13 positions. Two have been real headliners. Both were decimated. The rest of the companies are high quality holdings. In the summer utilities tend to do ok as well.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$15.110
Owned
Yes
BUY
BUY
April 1, 2013

Buy more Algonquin Power (AQN-T) or buy BMO Equal Weight Utilities Index (ZUT-T)? ZUT gives you more diversification so he would unload Algonquin Power and buy ZUT. This will take the risk out of the equation.

Buy more Algonquin Power (AQN-T) or buy BMO Equal Weight Utilities Index (ZUT-T)? ZUT gives you more diversification so he would unload Algonquin Power and buy ZUT. This will take the risk out of the equation.

Michael Bowman
Portfolio Manager, Wickham Investment Management
Price
$15.080
Owned
Unknown
BUY
BUY
March 25, 2013

Equally weighted. Likes it. Was hurt by a couple of names. Not without volatility.

Equally weighted. Likes it. Was hurt by a couple of names. Not without volatility.

Larry Berman CFA, CMT, CTA
Chief Investment Officer, Partner, ETF Capital Management Inc.
Price
$15.040
Owned
Unknown
PAST TOP PICK
PAST TOP PICK
January 4, 2013

(A Top Pick Dec 7/12. Up 4.4%.) Typically this trades around $16.10-$16.20 a share. Good dividend.

(A Top Pick Dec 7/12. Up 4.4%.) Typically this trades around $16.10-$16.20 a share. Good dividend.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$16.090
Owned
Yes
BUY
BUY
December 24, 2012

Likes it. Only one that writes covered calls against a basket of utility stocks. Return in the high 6% or low 7% range. Are not paying much back in terms of return of principle

Likes it. Only one that writes covered calls against a basket of utility stocks. Return in the high 6% or low 7% range. Are not paying much back in terms of return of principle

Richard Croft
President, R.N. Croft Financial Group Inc.
Price
$15.670
Owned
Yes
TOP PICK
TOP PICK
December 7, 2012

Utilities is a low beta sector. This one pays about 5% in dividend. It’s now at its support level.

Utilities is a low beta sector. This one pays about 5% in dividend. It’s now at its support level.

Keith Richards
Portfolio Manager, ValueTrend Wealth Management
Price
$15.500
Owned
Yes
BUY
BUY
August 3, 2012

Likes this one. It gives a reasonable yield. Normally with utilities, he likes the idea of having Covered Calls on it.

Likes this one. It gives a reasonable yield. Normally with utilities, he likes the idea of having Covered Calls on it.

John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$16.000
Owned
Yes
PAST TOP PICK
PAST TOP PICK
July 23, 2012
(A Top Pick May 22/12. Up 1.04%.) If you want to focus in on utilities, this is a good one but it could be a little too late to get into this one.
(A Top Pick May 22/12. Up 1.04%.) If you want to focus in on utilities, this is a good one but it could be a little too late to get into this one.
Vikash Jain, CFA
Portfolio Manager, ArcherETF
Price
$16.340
Owned
No
TOP PICK
TOP PICK
May 22, 2012
His theme today is Defensive. Canadian utilities. Solid ETF. The only concern is that it only holds 13. 5.6% dividend yield.
His theme today is Defensive. Canadian utilities. Solid ETF. The only concern is that it only holds 13. 5.6% dividend yield.
Vikash Jain, CFA
Portfolio Manager, ArcherETF
Price
$16.310
Owned
Yes
COMMENT
COMMENT
December 22, 2011
Equal Weight Utilities Index ETF. Price of utilities have been pushed up quite a bit because of 5% yields so from that point of view, this may not be the best time to buy. Now that they have the covered call component on it, it makes it a little more interesting because the covered call premium generation can help offset the too high prices it is at. Likes it.
Equal Weight Utilities Index ETF. Price of utilities have been pushed up quite a bit because of 5% yields so from that point of view, this may not be the best time to buy. Now that they have the covered call component on it, it makes it a little more interesting because the covered call premium generation can help offset the too high prices it is at. Likes it.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$15.920
Owned
Unknown
BUY
BUY
September 16, 2011
Equal Weight Utilities Index ETF. Likes this one but a few months ago, one of the component’s stocks blew up and lost about 7%. Thinks it's a lot safer now. Good yield of around 6%. Will be subject to interest rates if they go up dramatically.
Equal Weight Utilities Index ETF. Likes this one but a few months ago, one of the component’s stocks blew up and lost about 7%. Thinks it's a lot safer now. Good yield of around 6%. Will be subject to interest rates if they go up dramatically.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$15.950
Owned
Yes
BUY
BUY
June 3, 2011
Equal Weight Utilities Index ETF. Equal weighting as a risk management tool is probably not too bad. Won’t grow as much as emerging market ETFs but will be more stable.
Equal Weight Utilities Index ETF. Equal weighting as a risk management tool is probably not too bad. Won’t grow as much as emerging market ETFs but will be more stable.
John DeGoey
Portfolio Manager, Wellington-Altus Private Wealth Inc.
Price
$16.300
Owned
Unknown
BUY
BUY
March 11, 2011
Utilities. Good yield. It could be a good time to get in. A decent choice if income is the objective.
Utilities. Good yield. It could be a good time to get in. A decent choice if income is the objective.
John Hood
President & Portfolio Manager, J. C Hood Investment.
Price
$15.680
Owned
Yes
BUY
BUY
February 19, 2010
Sort of thing that will give predictable, reliable distribution.
Sort of thing that will give predictable, reliable distribution.
John DeGoey
Portfolio Manager, Wellington-Altus Private Wealth Inc.
Price
$15.060
Owned
Unknown
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