BMO Covered Call Utilities ETF (ZWU-T) Stock Predictions - Stockchase
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BMO Covered Call Utilities ETF (ZWU-T)

ON STOCKCHASE SINCE Dec 2011

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BMO Covered Call Utilitie...

ZWU-T

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BMO Covered Call Utilities ETF (ZWU-T) SAVE Jan, 22, 2019, 12:42 am

12.76 0.03 (0.23%)

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COMMENT
Utilities include telephones, pipelines and power. He owns this for clients who want the dividend, not long-term performance. If interest rates rise, this will likely fall. But he foresees minimal increases coming (2 from the U.S. this year, he thinks), so ZWU will perform flatly.
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Utilities include telephones, pipelines and power. He owns this for clients who want the dividend, not long-term performance. If interest rates rise, this will likely fall. But he foresees minimal increases coming (2 from the U.S. this year, he thinks), so ZWU will perform flatly.
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David Cockfield

Managing D, Northland Wealth Man...

Price Price
$12.600
Owned Owned
Yes

COMMENT
ZUT-T vs. ZWU-T. As we go into a recession, bond rates are dropping. ZUT-T is an equal weight exposure to traditional Canadian utilities. ZWU-T includes telcos and pipelines. He is always more in favour of diversification.
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ZUT-T vs. ZWU-T. As we go into a recession, bond rates are dropping. ZUT-T is an equal weight exposure to traditional Canadian utilities. ZWU-T includes telcos and pipelines. He is always more in favour of diversification.
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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.700
Owned Owned
Unknown

BUY
Or buy ZWD instead? He likes it because it has both Canadian and American utilities, and it has a covered call. The only problem with utilities is that they can't raise revenues (pass them onto the consumer) when interest rates rise.
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Or buy ZWD instead? He likes it because it has both Canadian and American utilities, and it has a covered call. The only problem with utilities is that they can't raise revenues (pass them onto the consumer) when interest rates rise.
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John Hood

President , J. C Hood Investment...

Price Price
$12.830
Owned Owned
Unknown

TOP PICK
Provides safe, regular cash flow. A package of diversified utilities, with dividends that you can depend on, and the covered call provides additional income. The cost of the ETF is quite low.
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Provides safe, regular cash flow. A package of diversified utilities, with dividends that you can depend on, and the covered call provides additional income. The cost of the ETF is quite low.
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David Cockfield

Managing D, Northland Wealth Man...

Price Price
$12.810
Owned Owned
Yes

COMMENT
Investors are hiding out in utilities. ZWU's covered call mitigates some volatility. (FIE-T is another one he'd look at.) If this ETF performs too well, it means the rest of the market is in trouble. Be careful you don't get suckered into defensive names.
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Investors are hiding out in utilities. ZWU's covered call mitigates some volatility. (FIE-T is another one he'd look at.) If this ETF performs too well, it means the rest of the market is in trouble. Be careful you don't get suckered into defensive names.
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Mike S. Newton,

Director &, Scotia Wealth Manage...

Price Price
$12.780
Owned Owned
Unknown

COMMENT
ZPR-T vs. ZWC-T vs. ZWU-T. He likes ZWU-T and ZWC-T for the covered calls. ZPR-T is reset preferreds. They reset. There is an expectation that BOC will be less aggressive with interest rates so we are seeing pressure on these. The lower it gets the more he likes it. He feels it will appreciate next year.`
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ZPR-T vs. ZWC-T vs. ZWU-T. He likes ZWU-T and ZWC-T for the covered calls. ZPR-T is reset preferreds. They reset. There is an expectation that BOC will be less aggressive with interest rates so we are seeing pressure on these. The lower it gets the more he likes it. He feels it will appreciate next year.`
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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.910
Owned Owned
Unknown

BUY
ZWU-T vs. ZWB-T. Rising interest rates are positive for revenues for banks, not profits necessarily. The yield curve is flattening and this is not good for banks. He prefers ZWU-t to ZWB-T.
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ZWU-T vs. ZWB-T. Rising interest rates are positive for revenues for banks, not profits necessarily. The yield curve is flattening and this is not good for banks. He prefers ZWU-t to ZWB-T.
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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.710
Owned Owned
Yes

HOLD
Good idea to add? Getting monthly dividend income plus income off the option premium. Buying this for the cash flow. This particular product will suffer in a higher interest rate environment. Don’t add now. Instead, buy ZWB, add it to ZWU, and together that’s your portfolio.
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Good idea to add? Getting monthly dividend income plus income off the option premium. Buying this for the cash flow. This particular product will suffer in a higher interest rate environment. Don’t add now. Instead, buy ZWB, add it to ZWU, and together that’s your portfolio.
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Richard Croft

President, R.N. Croft Financial...

Price Price
$12.690
Owned Owned
Unknown

BUY

[Caller asked about BCE-T.]  He prefers ZWU-T instead of just paying individual stocks.  No one knows which one is going to do best.  You get diversification.  He would step into it because it is defensive.

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[Caller asked about BCE-T.]  He prefers ZWU-T instead of just paying individual stocks.  No one knows which one is going to do best.  You get diversification.  He would step into it because it is defensive.

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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.300
Owned Owned
Unknown

COMMENT

ZWE-T vs. ZWU-T vs. ZWB-T.  A 100% stake in anything is generally a bad idea.  These three give you 2/3rds of your portfolio seeking dividends in Canada.  He would add ZPW-T for US put writes.  ZWH-T would give you a broader exposure.  He would underweight Canada.

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ZWE-T vs. ZWU-T vs. ZWB-T.  A 100% stake in anything is generally a bad idea.  These three give you 2/3rds of your portfolio seeking dividends in Canada.  He would add ZPW-T for US put writes.  ZWH-T would give you a broader exposure.  He would underweight Canada.

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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.620
Owned Owned
Unknown

BUY

High dividend covered call telcos and utilities, 70% Canadian, 30% US.  He really likes it.  These tend to underperform during rising interest rates.  Banks do a bit better (ZWB-T (covered Call Banks)/ZWE-T) in this environment.  He likes them paired with ZWU-T.  He owns no Canadian banks right now.

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High dividend covered call telcos and utilities, 70% Canadian, 30% US.  He really likes it.  These tend to underperform during rising interest rates.  Banks do a bit better (ZWB-T (covered Call Banks)/ZWE-T) in this environment.  He likes them paired with ZWU-T.  He owns no Canadian banks right now.

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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.350
Owned Owned
Yes

BUY

ZWB-T vs. ZWU-T.  ZWU-T is high dividend covered call, 70% US.  It is very interest rate sensitive.  ZWB-T is banks and so when interest rates are rising they tend to do better.  They are counter balanced so putting money into both is a good pairing, generally.  He owns no Canadian banks because he thinks they are expensive right now, however.

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ZWB-T vs. ZWU-T.  ZWU-T is high dividend covered call, 70% US.  It is very interest rate sensitive.  ZWB-T is banks and so when interest rates are rising they tend to do better.  They are counter balanced so putting money into both is a good pairing, generally.  He owns no Canadian banks because he thinks they are expensive right now, however.

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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.510
Owned Owned
Yes

DON'T BUY

Do you like the covered call? Not a huge fan, but it’s difficult for the individual to write covered calls because the ETF providers are in the way. Expensive at 0.71% MER, but pretty good. If interest rates rise accelerates you are probably not going to get a lot of performance. Be careful. For income, you could go to a lot of other areas. Timing better when there’s a sell-off in the market. Timing on this isn’t perfect, if you hold it there is nothing wrong with it.

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Do you like the covered call? Not a huge fan, but it’s difficult for the individual to write covered calls because the ETF providers are in the way. Expensive at 0.71% MER, but pretty good. If interest rates rise accelerates you are probably not going to get a lot of performance. Be careful. For income, you could go to a lot of other areas. Timing better when there’s a sell-off in the market. Timing on this isn’t perfect, if you hold it there is nothing wrong with it.

E.T.F.'s
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Terry Shaunessy

President , Shaunessy Investment...

Price Price
$12.700
Owned Owned
Unknown

WAIT

It is one of his favourite ETFs to play high yielding, less correlating exposure.  Utilities, pipelines and telcoes, 30% US, 70% Canada.  The yield is in the 4.5%-5% range.  It has a covered call overlay to enhance the yield to something over 6%.  Seasonality is a factor.  Over the next couple of months we will see interest rates tick up a bit and ZWU-T is interest rate sensitive.  Underfunded pension plans are off the board now and should have a slight negative on ZWU-T, so hold off before nibbling on it.

E.T.F.'s
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It is one of his favourite ETFs to play high yielding, less correlating exposure.  Utilities, pipelines and telcoes, 30% US, 70% Canada.  The yield is in the 4.5%-5% range.  It has a covered call overlay to enhance the yield to something over 6%.  Seasonality is a factor.  Over the next couple of months we will see interest rates tick up a bit and ZWU-T is interest rate sensitive.  Underfunded pension plans are off the board now and should have a slight negative on ZWU-T, so hold off before nibbling on it.

E.T.F.'s
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Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.780
Owned Owned
Unknown

HOLD

High dividend paying utilities and telcos, 30% international.  He is not adding here.  He did so a couple of months back.  He likes the strategy.  In a market downtown, everything falls but utilities fall a lot less.  The distribution could change over time due to volatility of its holdings.

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High dividend paying utilities and telcos, 30% international.  He is not adding here.  He did so a couple of months back.  He likes the strategy.  In a market downtown, everything falls but utilities fall a lot less.  The distribution could change over time due to volatility of its holdings.

E.T.F.'s
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0 comments
Larry Berman CF

Chief Inve, ETF Capital Manageme...

Price Price
$12.955
Owned Owned
Yes

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