BMO Covered Call Cdn Banks ETF

ZWB-T

Analysis and Opinions about ZWB-T

Signal
Opinion
Expert
COMMENT
COMMENT
January 6, 2020

vs. ZWC ZWC covers the general Canadian market vs. ZWB which covers Canadian banks. If you think banks will do well, ZWB may lag the market, but if the market tumbles, this will fall less.

Show full opinionHide full opinion

vs. ZWC ZWC covers the general Canadian market vs. ZWB which covers Canadian banks. If you think banks will do well, ZWB may lag the market, but if the market tumbles, this will fall less.

PARTIAL BUY
PARTIAL BUY
December 20, 2019
He’s more neutral on the banks. However, if you really want to invest in the banks, ZWB has a better yield because of the covered calls. If the bank goes sideways, it is a good way to play it. A good dividend.
Show full opinionHide full opinion
He’s more neutral on the banks. However, if you really want to invest in the banks, ZWB has a better yield because of the covered calls. If the bank goes sideways, it is a good way to play it. A good dividend.
TOP PICK
TOP PICK
September 13, 2019
The one covered call he didn't sell. It's always been a good performer and it's a good way to have income. It pays a 5% yield. There is possible capital gains and dividends.
Show full opinionHide full opinion
The one covered call he didn't sell. It's always been a good performer and it's a good way to have income. It pays a 5% yield. There is possible capital gains and dividends.
PAST TOP PICK
PAST TOP PICK
June 3, 2019
(A Top Pick May 22/18, Down 3%) He likes the Canadian Banks. Particularly the ones with the US exposure. Nice dividend yield. Core holding for him. If it drops he would re-balance and buy more.
Show full opinionHide full opinion
(A Top Pick May 22/18, Down 3%) He likes the Canadian Banks. Particularly the ones with the US exposure. Nice dividend yield. Core holding for him. If it drops he would re-balance and buy more.
COMMENT
COMMENT
March 25, 2019
Why are Canadian banks out of favour? There's renewed short interest in Canadian banks now. Also, there's economic uncertainty in Canada (flat rates, weak growth). You don't get much from the covered call. He'd rather buy the individual banks and collect their dividends. He's not worried about others shorting Canadian banks. You can dip your toe in now and dollar-cost average down over time.
Show full opinionHide full opinion
Why are Canadian banks out of favour? There's renewed short interest in Canadian banks now. Also, there's economic uncertainty in Canada (flat rates, weak growth). You don't get much from the covered call. He'd rather buy the individual banks and collect their dividends. He's not worried about others shorting Canadian banks. You can dip your toe in now and dollar-cost average down over time.
BUY WEAKNESS
BUY WEAKNESS
January 11, 2019
He's bullish the Canadian banks, which hold on during the correction until the tail end when they caught in the overall sell-off. The problem with the covered-call is they underperform the banks themselves. He hasn't bought this and recommends the straight bank ETF, which has outperformed ZWB. But if you think the banks will fall or go sideways, then buy ZWB.
Show full opinionHide full opinion
He's bullish the Canadian banks, which hold on during the correction until the tail end when they caught in the overall sell-off. The problem with the covered-call is they underperform the banks themselves. He hasn't bought this and recommends the straight bank ETF, which has outperformed ZWB. But if you think the banks will fall or go sideways, then buy ZWB.
WATCH
WATCH
January 2, 2019
This is always a core holding for him and it provides a 5.25% yield. He is concerned in this market right now and he may not own this soon. He is afraid of giving away the upside if the market rallies. He might prefer to own the banks stocks outright -- without selling covered calls.
Show full opinionHide full opinion
This is always a core holding for him and it provides a 5.25% yield. He is concerned in this market right now and he may not own this soon. He is afraid of giving away the upside if the market rallies. He might prefer to own the banks stocks outright -- without selling covered calls.
HOLD
HOLD
December 24, 2018
A BMO covered call ETF on Canadian banks. It is not a trading vehicle. The purpose of a covered call ETF is to harvest the premiums. This has gone down by less than an ETF just focused on banks with no covered calls. This is a longer term vehicle. Get it if you expect banks to be range bound or go up a little, but if they were going to rocket up you would not want the covered calls.
Show full opinionHide full opinion
A BMO covered call ETF on Canadian banks. It is not a trading vehicle. The purpose of a covered call ETF is to harvest the premiums. This has gone down by less than an ETF just focused on banks with no covered calls. This is a longer term vehicle. Get it if you expect banks to be range bound or go up a little, but if they were going to rocket up you would not want the covered calls.
BUY
BUY
December 4, 2018
Buy bank stocks as bond proxies? He likes Canadian banks, especially with covered calls like ZWB. Pricey at 75 basis points, but he has directly seen the value that BMO provides to this ETF. This isn't a bond substitute, but he's rather be paid 4% (dividend) after some dopey high-yield fund or ETF. But he wouldn't hold more than a 10% weighting in Canadian banks.
Show full opinionHide full opinion
Buy bank stocks as bond proxies? He likes Canadian banks, especially with covered calls like ZWB. Pricey at 75 basis points, but he has directly seen the value that BMO provides to this ETF. This isn't a bond substitute, but he's rather be paid 4% (dividend) after some dopey high-yield fund or ETF. But he wouldn't hold more than a 10% weighting in Canadian banks.
John Hood

Unlock Ratings

Price
$18.070
Owned
Unknown
DON'T BUY
DON'T BUY
November 12, 2018
ZWU-T vs. ZWB-T. Rising interest rates are positive for revenues for banks, not profits necessarily. The yield curve is flattening and this is not good for banks. He prefers ZWU-t to ZWB-T.
Show full opinionHide full opinion
ZWU-T vs. ZWB-T. Rising interest rates are positive for revenues for banks, not profits necessarily. The yield curve is flattening and this is not good for banks. He prefers ZWU-t to ZWB-T.
COMMENT
COMMENT
October 22, 2018

ZWE-T vs. ZWU-T vs. ZWB-T. A 100% stake in anything is generally a bad idea. These three give you 2/3rds of your portfolio seeking dividends in Canada. He would add ZPW-T for US put writes. ZWH-T would give you a broader exposure. He would underweight Canada.

Show full opinionHide full opinion

ZWE-T vs. ZWU-T vs. ZWB-T. A 100% stake in anything is generally a bad idea. These three give you 2/3rds of your portfolio seeking dividends in Canada. He would add ZPW-T for US put writes. ZWH-T would give you a broader exposure. He would underweight Canada.

HOLD
HOLD
October 1, 2018

ZWB-T vs. ZWU-T. ZWU-T is high dividend covered call, 70% US. It is very interest rate sensitive. ZWB-T is banks and so when interest rates are rising they tend to do better. They are counter balanced so putting money into both is a good pairing, generally. He owns no Canadian banks because he thinks they are expensive right now, however.

Show full opinionHide full opinion

ZWB-T vs. ZWU-T. ZWU-T is high dividend covered call, 70% US. It is very interest rate sensitive. ZWB-T is banks and so when interest rates are rising they tend to do better. They are counter balanced so putting money into both is a good pairing, generally. He owns no Canadian banks because he thinks they are expensive right now, however.

SELL
SELL
September 21, 2018

ZWU vs. ZWB? Be careful now. If interest rates rise, be sure you’re in the highest credit quality area, and he’s not sure this is the one. Has done incredibly well as interests rate have gone down. The back side is that interest rates start going up you won’t get any downside protection. If it’s in a TFSA, where you don’t have to worry about capital gains, you may want to bring it down a little bit.

Show full opinionHide full opinion

ZWU vs. ZWB? Be careful now. If interest rates rise, be sure you’re in the highest credit quality area, and he’s not sure this is the one. Has done incredibly well as interests rate have gone down. The back side is that interest rates start going up you won’t get any downside protection. If it’s in a TFSA, where you don’t have to worry about capital gains, you may want to bring it down a little bit.

COMMENT
COMMENT
September 17, 2018

ZWB-T vs. ZEB-T. ZEB-T gives you the max growth of the 6 banks. ZWB-T enhances your yield and is more defensive. The covered call strategies have a little higher MER. The difference between them is the implied volatility.

Show full opinionHide full opinion

ZWB-T vs. ZEB-T. ZEB-T gives you the max growth of the 6 banks. ZWB-T enhances your yield and is more defensive. The covered call strategies have a little higher MER. The difference between them is the implied volatility.

COMMENT
COMMENT
August 31, 2018

Covered call trading is best for a flat or slightly down trending market. If you hold it in a strong up trending market, you are cutting off the top all the time on the rally, but you are still susceptible to large equity draw downs.

Show full opinionHide full opinion

Covered call trading is best for a flat or slightly down trending market. If you hold it in a strong up trending market, you are cutting off the top all the time on the rally, but you are still susceptible to large equity draw downs.

Showing 1 to 15 of 172 entries