BMO Covered Call Utilities ETF | StockChase
65
BMO Covered Call Utilities ETF (ZWU-T)

Last Price Recorded: $13.9050 on 2017-11-20

ON STOCKCHASE SINCE Dec 2011

E.T.F.'s

BMO Covered Call Utilities ETF


Signal Opinion Expert

2017-10-27

COMMENT
BMO Covered Call Utilities ETF (ZWU-T)

Good for a TFSA?This ETF holds a range of utilities and pays an excellent return. Essentially you are buying a portfolio of Canadian utilities. If you want a nice cash flow in your portfolio, it gives you diversification.

E.T.F.'s
David Cockfield

Managing Director, Northland Wealth Management

Price: $13.910
Owned: Yes

2017-10-23

COMMENT
BMO Covered Call Utilities ETF (ZWU-T)

The .U units are in US$ and not a lot of people are using them.  Its liquidity is that of the underlying securities.  The market maker creates more units as required.  There is no need to worry about liquidity just because the ETF is thinly traded.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $14.000
Owned: Unknown

2017-09-01

WAIT
BMO Covered Call Utilities ETF (ZWU-T)

There are 20 securities in this with roughly 5% in each. Is 10%-15% of that too much to have in one Security? This pays a very nice yield. Originally it was just Canadian utilities, but now they have some US stuff as well. Utilities are very subject to interest rate changes, and is something to keep in mind. He doesn’t know about going with 15%, but you are probably fine with 5%-10%. With a possible increase in interest rates, you might want to wait a few days.

E.T.F.'s
John Hood

President & Portfolio Manager, J. C Hood Investment.

Price: $13.820
Owned: Unknown

2017-07-10

BUY on WEAKNESS
BMO Covered Call Utilities ETF (ZWU-T)

He likes it and holds it in a dividend fund, using it in a defensive way.  It has a covered call overlay.  Unfortunately the premium from the covered call strategy is less than desirable because volatility has been so low for so long.  We are seeing a little sell off because of a sensitivity to interest rates.  If it falls another couple of percent he will go back to accumulating it.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $13.750
Owned: Yes

2017-06-29

BUY
BMO Covered Call Utilities ETF (ZWU-T)

A Covered call ETF which clients gravitate to.  ZUT-T is the non-covered call overlay.  Over the very long haul you may get higher returns with ZUT-T than ZWU-T.  If you need the yield, then there is nothing wrong with the covered call ETF, ZWU-T.  Consider XIC-T also.

E.T.F.'s
Daniel Straus

Head of ETF Research & Strategy, National Bank Financial

Price: $13.890
Owned: Unknown

2017-06-26

WATCH
BMO Covered Call Utilities ETF (ZWU-T)

80% Canada / 20% US.  It is not a fixed income replacement.  He is not adding to his holding right now.  He loves it as a yield play and would add more if we sold off more aggressively.  He has half a position.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $14.150
Owned: Yes

2017-06-23

TOP PICK
BMO Covered Call Utilities ETF (ZWU-T)

Had been avoiding the utility area, because he saw the temper tantrum the market went through with the thought that rates were going up in the US. He’s come to the conclusion that interest rates are going to stay low for a lot longer than anticipated. Utility yields are quite attractive, and it is almost impossible to get those kinds of yields out of the fixed income market.

E.T.F.'s
David Cockfield

Managing Director, Northland Wealth Management

Price: $14.110
Owned: Yes

2017-05-16

DON'T BUY
BMO Covered Call Utilities ETF (ZWU-T)

He would be very cautious about certain ETF’s that are loaded with derivatives, etc. They may not perform the way you expect them to. Also, the market doesn’t just look at where rates are going in the next year. He would not be a big fan of a Covered Call ETF.

E.T.F.'s
Lorne Steinberg

President & Portfolio Manager, Lorne Steinberg Wealth Management Inc

Price: $14.100
Owned: Unknown

2017-05-11

BUY
BMO Covered Call Utilities ETF (ZWU-T)

Covered Call in 60% of shares.  It is in Utilities.  A pretty good yield.  He is pleased they expanded into US utilities.  Unfortunately they do badly in increasing interest rates.  He would not want to think rates were going up too fast.  Premiums for options are quite low right now so the covered call feature may not be doing as well as previously.

E.T.F.'s
John Hood

President & Portfolio Manager, J. C Hood Investment.

Price: $14.100
Owned: Yes

2017-04-10

BUY
BMO Covered Call Utilities ETF (ZWU-T)

In a strong upward market it will underperform the equal weight without covered calls.  Despite what others have said, these are not bad for long term holds.  They do not, however, replace fixed income because you have equity exposure.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $14.180
Owned: Unknown

2017-04-10

COMMENT
BMO Covered Call Utilities ETF (ZWU-T)

They write call options against utilities.  It is an interest rate play.  Once rates started to go up, utilities are vulnerable and so are covered calls.  They may not go up for a while yet in Canada.

E.T.F.'s
Gavin Graham

Trustee, Pointbreak ETFs

Price: $14.180
Owned: Unknown

2017-03-20

COMMENT
BMO Covered Call Utilities ETF (ZWU-T)

What is the downside risk? This has 80% pipelines, telcos, utilities in Canada and 20% in the US. Generally utilities, telcos and pipelines are big dividend players. This is yielding about 7%, a very nice yield, but extremely interest rate sensitive. In 2013, when the US Federal Reserve was first talking about raising rates, we had the taper tantrum. This ETF went down pretty hard, but then came back up when the Fed backed off. In 2015, there was a big drop because of pipelines, when oil prices were coming down. You have to understand what you are holding.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $13.930
Owned: Unknown

2017-02-27

WAIT
BMO Covered Call Utilities ETF (ZWU-T)

Utilities, pipelines and Telco’s.  80/20 Canadian to US.  It fell on anticipation of interest rate increases and oil dropping early in 2016.  You have to be careful because rising interest rates and falling oil prices are both negative for it.

E.T.F.'s
Larry Berman CFA, CMT, CTA

Chief Investment Officer, Partner, ETF Capital Management Inc.

Price: $13.850
Owned: Yes

2017-02-27

BUY
BMO Covered Call Utilities ETF (ZWU-T)

He doesn’t own any utility ETF’s right now. They are one of the most battered parts of the market, which would have been a great opportunity to buy around Christmas. This ETF is pretty good. It has a great yield. It has a combination of both Canadian and US utility names. This is a pretty good entry point. 6.75% yield.

E.T.F.'s
Mike S. Newton, CIM FCSI

Director & Portfolio Manager, Scotia Wealth Management

Price: $13.850
Owned: No

2016-12-09

COMMENT
BMO Covered Call Utilities ETF (ZWU-T)

Hold it in a TFSA if there is an interest rate increase? An interest rate increase is not necessarily a reason to bail on this, however, you need to recognize what you own. This would be utility stocks, and you need to have high dividend paying companies. This was a great space to be in prior to the US election, because of slow growth and interest rates pretty much on hold. Covered calls are written against half of the stocks, and the other half are allowed to grow by themselves. ZWB is probably a better place to be. It is the same structure, but a little less on the dividend side.

E.T.F.'s
Richard Croft

President, R.N. Croft Financial Group Inc.

Price: $13.550
Owned: Unknown

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