BMO Canadian High Dividend Covered Call ETF

ZWC-T

Analysis and Opinions about ZWC-T

Signal
Opinion
Expert
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.
BUY
BUY
December 17, 2018
This is a defensive to hold/buy for the next 12 months. High-dividend payers are in this ETF, and those stocks (i.e. BCE, Enbridge) are holding on well in this market. Yields are supporting their prices.
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This is a defensive to hold/buy for the next 12 months. High-dividend payers are in this ETF, and those stocks (i.e. BCE, Enbridge) are holding on well in this market. Yields are supporting their prices.
PARTIAL SELL
PARTIAL SELL
December 10, 2018
Moving to a Non-Covered Call version. The ultimate bottom/bottom is not in. If you are long term strategic, you stick with the covered call overlays. He'd be okay making a switch today.
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Moving to a Non-Covered Call version. The ultimate bottom/bottom is not in. If you are long term strategic, you stick with the covered call overlays. He'd be okay making a switch today.
DON'T BUY
DON'T BUY
November 23, 2018
Everyone loves the extra income from the covered calls. Remember that it will face all the market downside and cuts off the top on rallies. Be aware of a steep decline in the market as it will not participate as the market recovers, due to all the calls it has written on the way down. You end up giving away your winners and holding your losers.
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Everyone loves the extra income from the covered calls. Remember that it will face all the market downside and cuts off the top on rallies. Be aware of a steep decline in the market as it will not participate as the market recovers, due to all the calls it has written on the way down. You end up giving away your winners and holding your losers.
COMMENT
COMMENT
November 19, 2018
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.
COMMENT
COMMENT
September 24, 2018

Banks insurance and so on – high yielding stocks. Late in the cycle you will get a bit higher yield. It is limited to Canadian companies so there is no global diversification there. Sometimes it pays to have financial advice.

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Banks insurance and so on – high yielding stocks. Late in the cycle you will get a bit higher yield. It is limited to Canadian companies so there is no global diversification there. Sometimes it pays to have financial advice.

WATCH
WATCH
September 17, 2018

Great quality dividend paying stocks with a covered call overlay. He loves the strategy. It owns banks, energy companies and insurance companies. The TSX could fall 3-5% over the next months and that is another place to come into it.

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Great quality dividend paying stocks with a covered call overlay. He loves the strategy. It owns banks, energy companies and insurance companies. The TSX could fall 3-5% over the next months and that is another place to come into it.

Showing 1 to 15 of 27 entries

BMO Canadian High Dividend 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 : 0

Total Signals / Votes : 2

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, 2 stock analyst published opinions about ZWC-T. 1 analyst recommended to BUY the stock. 0 analyst 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?

2 stock analyst 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 2020-06-04, BMO Canadian High Dividend Covered Call ETF (ZWC-T) stock closed at a price of $15.41.