Related posts
Top 7 Canadian Bank Stocks that Pay Solid DividendsThe Ultimate Canadian Bank Stocks Q&A (Deprecated & Redirected)Our Mega List of the Latest ETFs Mentioned on StockchaseGetting close to price that offers value to investors.
Recent share price weakness a good time to buy.
Quality names in Canadian banking sector.
If volatility is high - good to own.
If bullish on economy - better to own pure play bank stocks.
Economic weakness ahead, so better to own ZWB.
Covered call writing strategy.
No leverage.
Beneficial to get professional advice on sophisticated product.
Vague on buying strategy.
Our favourite covered call ETFs involve underlying assets that have a history of appreciating over time. For that reason, we like is the BMO Covered Call Canadian Banks ETF (ZWB). It has a 7.5% distribution yield, a higher AUM of $2.9B, and over the past 10 years it has returned 8.1% annually with distributions reinvested.
For investors seeking monthly income, covered calls can be a good approach, however, for the average investor we do not typically like the cap on price appreciation that covered call ETFs have, and for an uptrending market, we would prefer to own the underlying assets outright rather than covered calls.
Unlock Premium - Try 5i Free
Canadian banks are a core holding for him. Covered call boosted the yield in his portfolio.
Banks now may not be star performers as in the last 30 years. Interest rates are rising now and could stay this way for a while. Loan loss provisions will increase in a weakening economy. But of this class, he likes ZEB and ZWB (a covered call one for income) which he prefers, because he expects banks to be sideways and the covered call will enhance returns. You could buy a combination of the two.
Average decline in the underlying stocks not offset by extra divided yield.
Poor market is reason for falling share price.
Good product for defensive investors.
Good product for exposure to Canadian banks.
BMO Covered Call Canadian Banks ETF is a Canadian stock, trading under the symbol ZWB-T on the Toronto Stock Exchange (ZWB-CT). It is usually referred to as TSX:ZWB or ZWB-T
In the last year, 9 stock analysts published opinions about ZWB-T. 7 analysts 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 Covered Call Canadian Banks ETF.
BMO Covered Call Canadian Banks ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Covered Call Canadian Banks ETF.
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.
9 stock analysts on Stockchase covered BMO Covered Call Canadian Banks ETF In the last year. It is a trending stock that is worth watching.
On 2023-12-08, BMO Covered Call Canadian Banks ETF (ZWB-T) stock closed at a price of $17.02.
Would recommend buying in tranches to reduce risk. Good investment if believe bottom in banks. Could be a good time to start nibbling.