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Investor Insights

This summary was created by AI, based on 13 opinions in the last 12 months.

The BMO Covered Call Canadian Banks ETF (ZWB-T) is a covered call ETF that focuses on the Canadian banking sector. Experts are divided on the potential of this ETF, with some recommending it as a good income generator and a defensive investment in a weak market, while others caution against potential weakness in the Canadian economy and suggest alternative ETFs. The consensus among experts seems to be mixed, with some seeing value in the covered call strategy for income and others expressing concerns about economic weakness. Overall, the ETF seems to be a defensive option with potential for income in a volatile market.

Consensus
Mixed
Valuation
Fair Value
BUY

Good defensive product for investors. Dividend is safe and reliable. Don't expect large capital gains from this product (covered calls remove high growth). 

E.T.F.'s
BUY
Canadian dividend ETF?

This one from BMO is one of many with a covered call strategy that will give you a good income. Peruse the BMO covered call offerings in utilities, banks, or the index as a whole.

E.T.F.'s
BUY

Owns a lot of this. Pays a good return. However, buy ZEB (no covered call) if you believe the banks will recover.

E.T.F.'s
HOLD

Investors should be prepared for weakness in economy. Mortgage rates could add weakness to consumers. Would wait to buy this product. 

E.T.F.'s
BUY

Would recommend buying in tranches to reduce risk. Good investment if believe bottom in banks. Could be a good time to start nibbling. 

E.T.F.'s
BUY ON WEAKNESS

Getting close to price that offers value to investors.
Recent share price weakness a good time to buy.
Quality names in Canadian banking sector.

E.T.F.'s
BUY

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. 

E.T.F.'s
HOLD

Covered call writing strategy.
No leverage.
Beneficial to get professional advice on sophisticated product.
Vague on buying strategy.

E.T.F.'s
BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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.
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E.T.F.'s
PAST TOP PICK
(A Top Pick May 19/22, Down 5%)

Canadian banks are a core holding for him. Covered call boosted the yield in his portfolio.

E.T.F.'s
premium

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).

PAST TOP PICK
(A Top Pick May 23/23, Down 2.5%)Stockchase Research Editor: Michael O'Reilly

Our PAST TOP PICK with ZWB has triggered its stop at $17.50.  To remain disciplined, we recommend covering the position at this time.  This will result in a net investment loss of 6%, when combined with our previous recommendations.   

E.T.F.'s
premium

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 ZWB as a TOP PICK.  This low MER ETF holds equal weighting of the six big Canadian banks, which offers a good yield in itself.  Layered on top is a call option selling strategy that further enhances the yield.  We continue to recommend a stop-loss at $17.50, looking to achieve $22.00 -- upside potential of 20%.  Yield 7.4%  

E.T.F.'s
BUY
A Canadian bank ETF?

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.

E.T.F.'s
HOLD

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.

E.T.F.'s
premium

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
Showing 1 to 15 of 219 entries

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

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 10

Neutral - Hold Signals / Votes : 3

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 13

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, 13 stock analysts published opinions about ZWB-T. 10 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?

13 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 2024-05-23, BMO Covered Call Canadian Banks ETF (ZWB-T) stock closed at a price of $18.05.