BMO Covered Call Utilities ETF
ZWU-T
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Covered Call Bank ETF managed by Larry. It's one of his favourite holdings. Long term you can see it is very interest rate sensitive. Utilities, pipelines and telcos. This is not a bond replacement but it is a defensive way to play. He was adding previously but now he would be looking to trim it in preparation for adding in the next dip. He would not sell all and it is a phenomenal holding and is a core part of all his portfolios.
An ETF for utilities. A great defensive sector with amazing performance lately. XUT-T is good, but 60% is in the top 4 holdings (inculding Fortis and Algonquin); 4% yield and 55 basis point cost. ZUT-T is more diversified and equal-weight. ZWU is also equal weight but does covered calls to create extra income, which sells future income for gains today; yields 6%. Given the strong performance of utilities in the past year, covered calls have lagged.
An ETF for utilities. A great defensive sector with amazing performance lately. XUT-T is good, but 60% is in the top 4 holdings (inculding Fortis and Algonquin); 4% yield and 55 basis point cost. ZUT-T is more diversified and equal-weight. ZWU is also equal weight but does covered calls to create extra income, which sells future income for gains today; yields 6%. Given the strong performance of utilities in the past year, covered calls have lagged.
ZWU or ZWE Both are good defensive strategies. ZWE: He's not that bullish on Europe, but at least you get income from writing the covered calls here. ZWU: Utilities are much less volatile and more stable, yet expose you to Europe. If you belive in Europe and playing defence, then both ETFs are fine. These two ETFs are highly correlated, rising and falling together. Note that utilities are risk-off, not for you if you have long-term bullish.
ZWU or ZWE Both are good defensive strategies. ZWE: He's not that bullish on Europe, but at least you get income from writing the covered calls here. ZWU: Utilities are much less volatile and more stable, yet expose you to Europe. If you belive in Europe and playing defence, then both ETFs are fine. These two ETFs are highly correlated, rising and falling together. Note that utilities are risk-off, not for you if you have long-term bullish.
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Covered Call Bank ETF managed by Larry. It's one of his favourite holdings. Long term you can see it is very interest rate sensitive. Utilities, pipelines and telcos. This is not a bond replacement but it is a defensive way to play. He was adding previously but now he would be looking to trim it in preparation for adding in the next dip. He would not sell all and it is a phenomenal holding and is a core part of all his portfolios.