BMO Covered Call Cdn Banks ETF

ZWB-T

Analysis and Opinions about ZWB-T

Signal
Opinion
Expert
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.

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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.

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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.

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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.

BUY
BUY
August 15, 2018

Own both Canadian banks and ETF like this? He has clients who've owned both, so holding both is okay. You can make income off the covered call. He likes Canadian banks, because they've diversified outside Canada, such as TD and Royal.

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Own both Canadian banks and ETF like this? He has clients who've owned both, so holding both is okay. You can make income off the covered call. He likes Canadian banks, because they've diversified outside Canada, such as TD and Royal.

BUY
BUY
August 2, 2018

He likes the Canadian Banks now. Recommends buying it together with BMO Covered Call Utilities ETF (ZWU-T) to provide stability to the portfolio.

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He likes the Canadian Banks now. Recommends buying it together with BMO Covered Call Utilities ETF (ZWU-T) to provide stability to the portfolio.

DON'T BUY
DON'T BUY
July 13, 2018

ZWU or ZWB? Add more to both? Utilities and banks, covered call. Wouldn’t add more, and be especially careful with the utilities one in a rising rate environment. Might want to use the Vanguard VXC, world index excluding Canada. Inexpensive, liquid. Encourage people to look outside Canada for growth.

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ZWU or ZWB? Add more to both? Utilities and banks, covered call. Wouldn’t add more, and be especially careful with the utilities one in a rising rate environment. Might want to use the Vanguard VXC, world index excluding Canada. Inexpensive, liquid. Encourage people to look outside Canada for growth.

BUY
BUY
July 11, 2018

Yes, you can buy and hold this in a TFSA. Its yield is close to the Canadian banks' yield. What is the covered call portion doing for it?

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Yes, you can buy and hold this in a TFSA. Its yield is close to the Canadian banks' yield. What is the covered call portion doing for it?

BUY
BUY
July 3, 2018

What's a covered call, international dividend ETF, hedged to the CAD? Just go with the S&P 500, made up of companies that have a footprint around the world. Consider ZWB-T, a covered call on Canadian banks. A hedge against CAD but has global exposure.

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What's a covered call, international dividend ETF, hedged to the CAD? Just go with the S&P 500, made up of companies that have a footprint around the world. Consider ZWB-T, a covered call on Canadian banks. A hedge against CAD but has global exposure.

BUY
BUY
May 22, 2018

He owns lots of it because it's on the Canadian banks with some U.S. exposure. The banks have had a good run. Pays a 3.9% dividend.

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He owns lots of it because it's on the Canadian banks with some U.S. exposure. The banks have had a good run. Pays a 3.9% dividend.

TOP PICK
TOP PICK
May 22, 2018

He holds a lot of this. ZWB puts the covererd call portion on only 50-60%, so you also get the growth in the bank stocks. The Canadian banks will perform decently.

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He holds a lot of this. ZWB puts the covererd call portion on only 50-60%, so you also get the growth in the bank stocks. The Canadian banks will perform decently.

HOLD
HOLD
May 7, 2018

It should be dividend income and the covered call overlay is all capital gain. He does not see a lot of growth in the banks for next few years. This is the best way to hold them. He expects them to fall 25% from the peak during the next recession. The dividends are not in jeopardy.

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It should be dividend income and the covered call overlay is all capital gain. He does not see a lot of growth in the banks for next few years. This is the best way to hold them. He expects them to fall 25% from the peak during the next recession. The dividends are not in jeopardy.

PARTIAL SELL
PARTIAL SELL
January 8, 2018

ZWB-T vs. SU-T, which to sell. There is nothing wrong with Canadian banks long term. ZWB-T is his preferred way to play it. He got out of it when it retested last year’s resistance. He thinks we will test last year’s lows and then he would be a buyer. SU-T is a bellwether of the market but will underperform a lot of global oil plays. He would trim exposure and then look to buy it 10-15% lower. He would trim both here and look to buy them back.

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ZWB-T vs. SU-T, which to sell. There is nothing wrong with Canadian banks long term. ZWB-T is his preferred way to play it. He got out of it when it retested last year’s resistance. He thinks we will test last year’s lows and then he would be a buyer. SU-T is a bellwether of the market but will underperform a lot of global oil plays. He would trim exposure and then look to buy it 10-15% lower. He would trim both here and look to buy them back.

COMMENT
COMMENT
December 27, 2017

He uses a lot of the ZWB-T. He is always looking at keeping the cost low. When looking at covered calls or managed ETFs, all of a sudden prices spike. He’s looking to buy from 5 to 15 basis points. But there are times when he will look at a different products like ZWB-T or the whole series they have, ZWH-T, ZWA-T, etc. But the different thing with the covered calls is that the persons sitting at the trading desks are actually making a difference and he thinks it’s worth paying for. When you buy a covered call you are giving up some of the upside in exchange for cash flow. With interests rates being so low, covered calls are a good way to get the flow of income. He uses covered calls to enhance the income of a portfolio. He’s been holding this for years.

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He uses a lot of the ZWB-T. He is always looking at keeping the cost low. When looking at covered calls or managed ETFs, all of a sudden prices spike. He’s looking to buy from 5 to 15 basis points. But there are times when he will look at a different products like ZWB-T or the whole series they have, ZWH-T, ZWA-T, etc. But the different thing with the covered calls is that the persons sitting at the trading desks are actually making a difference and he thinks it’s worth paying for. When you buy a covered call you are giving up some of the upside in exchange for cash flow. With interests rates being so low, covered calls are a good way to get the flow of income. He uses covered calls to enhance the income of a portfolio. He’s been holding this for years.

SELL
SELL
December 4, 2017

He loves ZWB-T and it is a great way to hold the banks. But he sold out, taking profits, putting it into ZWU-T. This is a lot more interest rate sensitive. ZWU-T will outperform in a market correction as utilities are more defensive.

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He loves ZWB-T and it is a great way to hold the banks. But he sold out, taking profits, putting it into ZWU-T. This is a lot more interest rate sensitive. ZWU-T will outperform in a market correction as utilities are more defensive.

COMMENT
COMMENT
November 20, 2017

Unfavourable in a TFSA account because of the withholding taxes? It would not be in this case, because this is Canadian banks.

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Unfavourable in a TFSA account because of the withholding taxes? It would not be in this case, because this is Canadian banks.

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