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%.
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.
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
In the last year, 4 stock analysts published opinions about ZWC-T. 3 analysts 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.
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.
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.
4 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.
On 2023-03-24, BMO CDN HIGH DIV COVERED CALL ETF (ZWC-T) stock closed at a price of $17.03.