BMO Canadian High Dividend Covered Call ETF

ZWC-T

Analysis and Opinions about ZWC-T

Signal
Opinion
Expert
HOLD
HOLD
September 21, 2020
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.
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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.
WEAK BUY
WEAK BUY
September 17, 2020
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.
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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.
WAIT
WAIT
September 4, 2020

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.

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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.

COMMENT
COMMENT
June 26, 2020
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.
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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.
BUY
BUY
June 12, 2020
If you want to stay in the market, which he recommends, this should give you a better experience over all.
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If you want to stay in the market, which he recommends, this should give you a better experience over all.
COMMENT
COMMENT
June 9, 2020

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.

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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.

HOLD
HOLD
April 8, 2020

He has held this before, but sold it when the market began to decline. A covered call is good in a flat or rising market, but in a down market it can impede future recovery. The fund usually only has about 50% of its holdings with covered calls and its yield is about 8%. He thinks it is worth holding.

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He has held this before, but sold it when the market began to decline. A covered call is good in a flat or rising market, but in a down market it can impede future recovery. The fund usually only has about 50% of its holdings with covered calls and its yield is about 8%. He thinks it is worth holding.

COMMENT
COMMENT
January 6, 2020
A good, plain-vanilla product. The covered call is a good defensive strategy; whatever happens at least you get the covered call income. This is perfectly fine. But right now he's worried about the global market--which territory will go down the most in a bear market? He feels we're in the 9th inning of the cycle and expects a bear market sometime. Even a good product like this will lose money if the market turns.
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A good, plain-vanilla product. The covered call is a good defensive strategy; whatever happens at least you get the covered call income. This is perfectly fine. But right now he's worried about the global market--which territory will go down the most in a bear market? He feels we're in the 9th inning of the cycle and expects a bear market sometime. Even a good product like this will lose money if the market turns.
BUY
BUY
January 2, 2020
Very good yield of around 6%. You give up some of the upside with the covered call. Holds some in his more conservative accounts. Remember the management fees are quite high with these covered calls.
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Very good yield of around 6%. You give up some of the upside with the covered call. Holds some in his more conservative accounts. Remember the management fees are quite high with these covered calls.
BUY
BUY
May 9, 2019
It's an income product, so don't worry about the stock price. The covered calls add a bit more distributions to the dividend. Is it enough for you? This is a bond proxy, really.
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It's an income product, so don't worry about the stock price. The covered calls add a bit more distributions to the dividend. Is it enough for you? This is a bond proxy, really.
COMMENT
COMMENT
April 8, 2019
ZWC-T & ZWU-T. He loves ZWU-T as a defensive holding. ZWC-T is a broad TSX with a covered call overlay to enhance yields. Canada should underperform the world for a long time as a quarter of the index is the banks. The best two growth areas in the world for a couple of decades are healthcare and technology. These two ETFs would overweight Canada if they were your whole portfolio. ZWE-T and ZWS-T are preferable to include in a portfolio.
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ZWC-T & ZWU-T. He loves ZWU-T as a defensive holding. ZWC-T is a broad TSX with a covered call overlay to enhance yields. Canada should underperform the world for a long time as a quarter of the index is the banks. The best two growth areas in the world for a couple of decades are healthcare and technology. These two ETFs would overweight Canada if they were your whole portfolio. ZWE-T and ZWS-T are preferable to include in a portfolio.
COMMENT
COMMENT
March 25, 2019
Broad exposure to the best dividend payers in Canada. It is a great sector but he thinks we are going into a global slowdown. The resistance level is problem well below the January lows. $16 is probably the bottom. ZWU-T would probably perform a little bit better.
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Broad exposure to the best dividend payers in Canada. It is a great sector but he thinks we are going into a global slowdown. The resistance level is problem well below the January lows. $16 is probably the bottom. ZWU-T would probably perform a little bit better.
PARTIAL BUY
PARTIAL BUY
March 12, 2019
A popular ETF that gives the double-whammy of Canadian dividend stocks and writes call options on them. It's tax-efficient in a non-dividend account. It pays over a 6% yield. But this charges 72 basis points and has a covered call overlay, so you won't participate as much in a market move upwards. So, limit your investment here.
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A popular ETF that gives the double-whammy of Canadian dividend stocks and writes call options on them. It's tax-efficient in a non-dividend account. It pays over a 6% yield. But this charges 72 basis points and has a covered call overlay, so you won't participate as much in a market move upwards. So, limit your investment here.
WATCH
WATCH
January 7, 2019
If markets were down 5% he would make a bigger allocation to this. You need to buy low and sell high. Once the market is down they are still writing calls. If the market then snaps back this one should underperform. Add to it after the markets have a good month.
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If markets were down 5% he would make a bigger allocation to this. You need to buy low and sell high. Once the market is down they are still writing calls. If the market then snaps back this one should underperform. Add to it after the markets have a good month.
COMMENT
COMMENT
December 17, 2018
ZDV vs. ZWC Both have similar stocks in them. If they're high-paying, quality stocks, the yield will support the stock price. When you write covered calls, BMO would be paying part of the dividend stocks on. Normally, a high-dividend stock is not so volatile.
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ZDV vs. ZWC Both have similar stocks in them. If they're high-paying, quality stocks, the yield will support the stock price. When you write covered calls, BMO would be paying part of the dividend stocks on. Normally, a high-dividend stock is not so volatile.
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BMO Canadian High Dividend Covered Call ETF(ZWC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 2

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for BMO Canadian High Dividend 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 Canadian High Dividend Covered Call ETF(ZWC-T) Frequently Asked Questions

What is BMO Canadian High Dividend Covered Call ETF stock symbol?

BMO Canadian High Dividend 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 Canadian High Dividend Covered Call ETF a buy or a sell?

In the last year, 5 stock analysts published opinions about ZWC-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is HOLD. Read the latest stock experts' ratings for BMO Canadian High Dividend Covered Call ETF.

Is BMO Canadian High Dividend Covered Call ETF a good investment or a top pick?

BMO Canadian High Dividend Covered Call ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO Canadian High Dividend Covered Call ETF.

Why is BMO Canadian High Dividend 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 Canadian High Dividend Covered Call ETF worth watching?

5 stock analysts on Stockchase covered BMO Canadian High Dividend Covered Call ETF In the last year. It is a trending stock that is worth watching.

What is BMO Canadian High Dividend Covered Call ETF stock price?

On 2020-10-27, BMO Canadian High Dividend Covered Call ETF (ZWC-T) stock closed at a price of $15.21.