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TSE:ZWC

18.89
0.03 (0.16%) 1d
0
Showing 1 to 15 of 42 entries
COMMENT
Is the 6.5% dividend too good to be true? Is there a return of capital portion in the yield? He doesn't believe so. On all BMO covered call ETFs you're adding 2-2.5% to the dividend to total 6.5%. No, there are no return on capital issues.
E.T.F.'s
COMMENT
A covered call on the entire Canadian market. He tends to use covered calls on sectors. ZWC will give you an enhanced income stream, but its growth is limited.
E.T.F.'s
COMMENT

ZPAY is his favourite way to play the US market. European ZWE is for Europe and if you need Canadian exposure. ZPAY is designed to yield around 6%. Will have some volatility but will have half of what the S&P will see.

E.T.F.'s
COMMENT
The caller requested suggestions for higher dividend ETF. There's a number of ways to play it. Go to an ETF website to see which ETF fits your profile. Covered calls provide higher dividends.
E.T.F.'s
DON'T BUY

Covered calls give you a boost in the distribution. Not a bad strategy when market is flat or slightly negative. If market continues to go higher, you're better off owning the underlying securities. Consider XEI instead, no covered call. Owns the securities outright, and so you won't get as high a dividend, but you might get more performance. In last 6 months, XEI returned17-18%, whereas ZWC returned 10.68%.

E.T.F.'s
PARTIAL BUY

Compare to ZDB-T. The covered writing ETF including dividends is under-performing the simple buy and hold strategy. During a recovery, the covered written stocks are capped on the upside. You get a slim amount of option premium because the premiums are priced on the volatility of the underlying equity. Don't let your whole portfolio be covered written. Be careful.

E.T.F.'s
COMMENT

ZWC would be his favourite so he can be more defensive. If you are bullish, ZDV would make sense. Markets have some squeeze potential and there is liquidity coming to markets from stimulus. He does not see materially higher highs than where we are up until early next year.

E.T.F.'s
COMMENT
The caller owns the many of the underlying stocks and is considering switching to this ETF. ZWC is a covered call so you will get some enhanced yield. If you seek yield, it could be a better way to go. If you want flexibility, then the individual stocks makes sense. Hard to know the right answer.
E.T.F.'s
HOLD
It has the TSX covered, banks, oils and everything else. You are after it for the yield. Sometimes the managers get overwhelmed and then sell the call further out so they are very good. They are pretty agile. He would not be in a race to sell.
E.T.F.'s
HOLD
They are both high dividend covered call ETFs. They have underperformed compared to tech and growth stocks. If you want good dividend paying stocks, it is a fine investment for buy and hold. They only write the options on half the positions to enhance yield.
E.T.F.'s
WEAK BUY
ZWC vs. ZWB He'd stay away from financial services, as with the low rates it's hard for the banks to be profitable. He'd rather go with the broader index. The more volatile a price, the higher the premium you'll get on a covered call. The covered call strategy here hasn't delivered in this volatile environment.
E.T.F.'s
WAIT

He uses ZWC to be defensive when he's close to the high point to have more buffer for when the markets go sideways or down. From a low point, you want ZDV to get dividends without covered call. He would wait for a pullback before putting new money in.

E.T.F.'s
COMMENT
When you have written away the upside to get the higher yield, you give away some of the upside as in ZWC-T. If the market will be sideways then this a good holding.
E.T.F.'s
BUY
If you want to stay in the market, which he recommends, this should give you a better experience over all.
E.T.F.'s
COMMENT

ZWC vs. ZWB Both offer additional income through covered calls. ZWC yields 8.4% plus the dividend and premium from the covered call strategy. ZWB (Canadian banks) pays 6.5%. Both you pay 72 basis points in MER. ZWC is more diverse with banks, pipelines and telecoms so he prefers ZWC. Warning: long-term, covered calls can lag the underlying securities if there's a bull market in those securities. In an up market, he prefers the stocks themselves or other ETFs.

E.T.F.'s
Showing 1 to 15 of 42 entries

BMO CDN HIGH DIV COVERED CALL ETF(ZWC-T) Rating

Ranking : 3 out of 5

Bullish - Buy Signals / Votes : 1

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 3

Stockchase rating for BMO CDN HIGH DIV COVERED CALL 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 CDN HIGH DIV COVERED CALL ETF(ZWC-T) Frequently Asked Questions

What is BMO CDN HIGH DIV COVERED CALL ETF stock symbol?

BMO CDN HIGH DIV COVERED CALL ETF is a Canadian stock, trading under the symbol ZWC-T on the Toronto Stock Exchange (ZWC-CT). It is usually referred to as TSX:ZWC or ZWC-T

Is BMO CDN HIGH DIV COVERED CALL ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about ZWC-T. 1 analyst recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO CDN HIGH DIV COVERED CALL ETF.

Is BMO CDN HIGH DIV COVERED CALL ETF a good investment or a top pick?

BMO CDN HIGH DIV COVERED CALL ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO CDN HIGH DIV COVERED CALL ETF.

Why is BMO CDN HIGH DIV COVERED CALL 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 CDN HIGH DIV COVERED CALL ETF worth watching?

3 stock analysts on Stockchase covered BMO CDN HIGH DIV COVERED CALL ETF In the last year. It is a trending stock that is worth watching.

What is BMO CDN HIGH DIV COVERED CALL ETF stock price?

On 2021-10-25, BMO CDN HIGH DIV COVERED CALL ETF (ZWC-T) stock closed at a price of $18.89.