BMO Europe High Dividend Covered Call ETF (ZWP.TO)

Dividends in Europe, without the currency hedge. He likes this one. Doesn't have to be either/or for ZWP and ZWE -- you could do half and half. 

He generally leaves his equities unhedged. If you're picking an area to do well, generally that region's currency also does well. It also adds another layer to diversification for a Canadian investor. With another rate cut today and our economy a bit weaker, it's been nice to have some currency exposure in a portfolio.

ZWE is better in the long run, but don't expect much growth. You're selling calls, but you collect a high dividend. Loves them both. This is hedged to the CAD. ZWE is more suited for the retail investor than the ZWP; don't worry about the currency exposure to the Euro.

The answer is both, because the securities holdings underneath them are identical. ZWE is currency hedged, ZWP is not. The choice depends on your view of the CAD relative to the euro. If you don't want to trade, buy the hedged version; it'll be your better holding in the long run. Huge distribution (from selling calls), but not a lot of growth (as calls sell some of the upside).

Loves them both, uses them in his sleep-at-night portfolios. He goes back and forth, depending on his view of CAD vs. euro.

If you're really looking for enhanced yield out of Europe, he really likes ZWP (high dividend payers, covered call, currency exposure) or ZWE (high dividend payers, covered call, currency hedged). The charts don't show a lot of gains, but that's because they pay out a pretty significant dividend (much bigger than ZDI, which is just dividends without the covered calls). 

If you're conservative and you want more tax-efficient income in a taxable account, he likes these ETFs with the covered calls a lot better than ZDI.

A favourite ETF of his. A tax-efficient way to extract income in international markets. But the incoming America First agenda will likely be pro-US and negative other places in the world through tariffs. Dividend-paying stocks are generally not big exporters. EMs are likely to targeted far more than Europe, but Trump, he thinks, will slap tariffs across the board.

He had some of both this year, but right now ZWE is his preference. Going over the history of this ETF, the extreme was $1.50-1.60 CAD to euro. So anything above $1.50-1.55, you'd want to be hedged. Anything lower than $1.35-1.40, you want to be exposed to the foreign currency.

Recently we got back above $1.50. If it keeps going higher, that's fine. When you're hedging the CAD relative to Europe, their interest rates are lower than ours, and so you actually earn extra doing it.

ZWU has utilities, pipelines, and telcos (including BCE). A utility play, with a covered call strategy. Really nice way to get a lot of income in your portfolio without a lot of volatility. But very interest-rate sensitive. Lots of ups and downs over the last 5 years, mainly based on what the bond market's done.

ZWP is the equivalent of high-dividend players, but exposed to Europe. Some of the best dividend yields come out of foreign companies. Great way for Canadian investors to get income and dividend exposure in Europe. Likes it very much.

Likes both, and owns both in his ZZZD. The mix changes from time to time as he sees more value in one or the other. Most recently, he trimmed ZWU and bought some ZWEN (direct exposure to covered call energy sector).

In general, Europe is good value compared to US or NA markets. Lower PE and book value, higher dividend. Holds underlying securities, and so gives better total return than the similar, but covered call, ZWE.

Great way to get exposure to Europe.
Europe challenged by growth problems, but quality ETF.
Good way to get diversified portfolio.

Exposure to currency is mostly hedged for ZZZD. ZPAY is always in USD. ZWP is Canada relative to European currencies. The Canadian dollar selling off is a factor, but they are also doing well because they are doing what they are designed to do.

For yield seekers, ZWU is a great domestic play. Yield is currently around 7%. It is interest rate sensitive and to energy. If you want European dividend plays, he would recommend ZWE and ZWP.

Still holds ZWP. Would rotate with ZDH, which is an international dividend play. If you are really bullish, you want the dividend pure exposure. If not, play the covered call version. Right now, he holds both. More excited about Europe's valuation than US markets. Increasing exposure to international markets.

This is a currency trade between ZWE to ZWP. Likes ZWP here. Favoured way of extracting value from European markets. The CAD to Euro has outperformed so it has not been ideal. If you want the yield, ZWP is the way to play.