Buy, Sell or Hold: BMO Covered Call Canadian Banks ETF (ZWB-T)

Home Daily Stock Opinions and Ratings BMO Covered Call Canadian Banks ETF (ZWB-T)

TSE:ZWB

17.82

0.07 (0.39%) 1d

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly

We again reiterate ZWB, an ETF of Canadian banks with dividends enhanced by the use of writing covered calls managed by BMO, as a TOP PICK. Canadian banks are a safe haven during periods of market volatility and will respond well when the economy stabilizes. The yield enhancement gives some additional premium to holding the banks. We recommend maintaining the stop loss at $17.50, looking to achieve $22 -- upside potential of 12%. Yield 6.8%

E.T.F.'s

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O'Reilly We reiterate this ETF of Canadian banks with dividends enhanced by the use of writing covered calls managed by BMO as a TOP PICK during this period of market uncertainty. Canadian banks are a safe haven during periods of market volatility. This gives some additional premium to holding the banks. We recommend trailing up the stop loss (from $16.00) to $17.50, looking to achieve $22 -- upside potential of 18%. Yield 7.1%

E.T.F.'s

Unspecified

It is a large ETF with competitive fees. If you want to sell calls, having professionals do it is worth the cost. You can buy if you want to be in Canadian financials.

E.T.F.'s

TOP PICK

A core holding that he has recommended before. Canadian banks are strong. The option premiums here are good.

E.T.F.'s

WEAK BUY

Banks are merely okay, but pay good yields. Covered calls work in sideways/down markets and pay extra yield. Not for bullish markets.

E.T.F.'s

This is a Panic-proof Portfolio opinion which is available only for Premium members

Curated by Michael O'Reilly since 2020.
1550+ opinions with 4.81 rating (one of the best performing expert).

TOP PICK

Stockchase Research Editor: Michael O’Reilly An ETF of Canadian banks with dividends enhanced by the use of writing covered calls managed by BMO. Canadian banks are a safe haven during periods of market volatility. This gives some additional premium to holding the banks. We recommend setting a stop loss at $16.00, looking to achieve 14%. Yield 7%

E.T.F.'s

WAIT

Covered calls can help volatility a bit and enhance yield. However Canadian banks are under pressure because of very high consumer debt, especially mortgage debt. Technically if you were to buy it use a stop loss at $17.75 which is not much lower than where it is now. Wait for something to resolve in the market.

E.T.F.'s

BUY

Decent product, and not such a bad idea at this time. If you expect the banks to go up a lot, just buy the banks or an ETF without the covered call. Banks tend to show seasonal strength in mid-October. This is a safer way to play the banks, as they're facing headwinds, but will do OK.

E.T.F.'s

Unspecified

This is a covered call writing ETF with a three year return of 36% and 0.8% MER. Covered call writing sometimes gives up upside. Could try ZEB where calls are not written for about 51% of the holdings. Or you might consider CIC - CI Canadian Banks Income Class ETF. It holds 75% of the basket without the call writing on it. Same yield as ZEB.

E.T.F.'s

TOP PICK

Core holding, especially for more conservative investors who want yield. Banks have been beaten up because of concern about recession, but this is premature. Canadian banks are in pretty good shape from a credit point of view. Yield around 6%.

E.T.F.'s

BUY

Likes it, owns a lot. Yields are more attractive than on regular banks.

E.T.F.'s

BUY on WEAKNESS

They only write the covered calls on half the position, so you get more upside exposure than pure covered calls. For a more conservative play, ZWB has a covered call strategy on banks. Nothing is risk free however. Does not think there will be a big recession.

E.T.F.'s

HOLD

Domestically, he doesn't generally use ETFs, saving those for foreign exposure instead. Overall, banks are good to be in right now, given world uncertainties. Rules being relaxed means share buybacks and dividend increases. Earnings potential over the next year will stall out, until the economy gets more settled. Prime area to hold for safety.

E.T.F.'s

COMMENT

Question on underlying dividend increase. ZEB yields will rise with dividend increases from the underlying stocks. For ZWB, the dividend increase will increase yield, but much of the performance comes from the volatility and the premium.

E.T.F.'s

DON'T BUY

ZWB vs. ZEB He prefers ZEB, with a lower management fee. ZWB has a higher yield at 5%, instead of 3.1%. ZEB has outperformed the covered call strategy. You want to own the underlying securities without being called out. Covered call strategy works better in a sideways or downwards market. But if the the market's falling, you probably don't want to own either.

E.T.F.'s

Showing 1 to 15 of 205 entries

BMO Covered Call Canadian Banks ETF(ZWB-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for BMO Covered Call Canadian Banks 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 Covered Call Canadian Banks ETF(ZWB-T) Frequently Asked Questions

What is BMO Covered Call Canadian Banks ETF stock symbol?

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

Is BMO Covered Call Canadian Banks ETF a buy or a sell?

In the last year, 2 stock analysts published opinions about ZWB-T. 2 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.

Is BMO Covered Call Canadian Banks ETF a good investment or a top pick?

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.

Why is BMO Covered Call Canadian Banks 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 Covered Call Canadian Banks ETF worth watching?

2 stock analysts on Stockchase covered BMO Covered Call Canadian Banks ETF In the last year. It is a trending stock that is worth watching.

What is BMO Covered Call Canadian Banks ETF stock price?

On 2023-03-30, BMO Covered Call Canadian Banks ETF (ZWB-T) stock closed at a price of $17.82.

BMO Covered Call Canadian Banks ETF (ZWB-T)

TSE:ZWB

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T) Rating

BMO Covered Call Canadian Banks ETF(ZWB-T) Frequently Asked Questions

What is BMO Covered Call Canadian Banks ETF stock symbol?

Is BMO Covered Call Canadian Banks ETF a buy or a sell?

Is BMO Covered Call Canadian Banks ETF a good investment or a top pick?

Why is BMO Covered Call Canadian Banks ETF stock dropping?

Is BMO Covered Call Canadian Banks ETF worth watching?

What is BMO Covered Call Canadian Banks ETF stock price?

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BMO Covered Call Canadian Banks ETF (ZWB-T)

TSE:ZWB

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

This is a Panic-proof Portfolio opinion which is available only for Premium members

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T)

BMO Covered Call Canadian Banks ETF(ZWB-T) Rating

BMO Covered Call Canadian Banks ETF(ZWB-T) Frequently Asked Questions

What is BMO Covered Call Canadian Banks ETF stock symbol?

Is BMO Covered Call Canadian Banks ETF a buy or a sell?

Is BMO Covered Call Canadian Banks ETF a good investment or a top pick?

Why is BMO Covered Call Canadian Banks ETF stock dropping?

Is BMO Covered Call Canadian Banks ETF worth watching?

What is BMO Covered Call Canadian Banks ETF stock price?

You may also like:

Latest Buy Signals

Today's Top Picks

Popular Articles

Latest Sell Signals

Most Recent Experts

Andrew Moffs

The Panic-Proof Portfolio (Stockchase Research)

The Weekly Buzzing Stocks by Billy Kawasaki

Kim Bolton

Stockchase Insights