Buy, Sell or Hold: Covered Call US Banks ETF (ZWK-T)

TSE:ZWK

26.37

0.15 (0.57%) 1d

Showing 1 to 15 of 22 entries

HOLD

Broad basket of US regional & National banks (5% weighting to each name). Question is how much exposure investors want to banks. Low dividend rate, not as high as Canadian banks. Not a good investment for someone in their 80's.

banks

BUY

Good option for someone in their mid-80s? Broad equal-weight basket of US regional and national banks. Pretty volatile and cyclical and getting less dividend than with Canadian banks. If already exposed to Canadian banks then good option, otherwise it would be wise to wait 3 to 6 months to see how the recession is going to play out on capital markets.

banks

COMMENT

It pays around an 8% dividend. This holds not just US banks, but the selective covered-call ETFs index with 1.25% leverage, and you get an 11-12% distribution yield, but there is a 38% tech and communications weighting, so that's a warning. This is down 18% vs. the S&P. A new ETF.

banks

PAST TOP PICK

(A Top Pick Aug 03/21, Down 6%) Down with the market. High yield. In US banks, so he's very comfortable holding.

banks

BUY

Has done very well on yield and capital appreciation. Be aware that, since it holds US banks, dividend income is treated as regular income, not as dividend income, but the capital gains are still there. He's still buying it. Yield is about 5%.

banks

BUY

USD ETF for a new investor. Canadian-listed but deals with the US as a covered call, yield is around 5%. There's also a USD version.

banks

PAST TOP PICK

(A Top Pick Nov 09/20, Up 20%) The yield has done well, paying 6.5%. Owns it for many accounts. Still likes it. The covered calls are treated as capital gains.

banks

BUY

ZWK vs. XLF vs. VFH Likes US banks. Equal weighted basket of large and regional banks. Will benefit when you see the economy recover, 6-12 months out, with lower loan losses, steepening yield curve. Yield about 6.9%, a combination of dividends and covered call options. Makes sense if you're in it for the income. XLF and VFH don't have the covered call, do have a lower expense ratio, and let you capture the upside from the underlying securities.

banks

TOP PICK

An MER of 0.71% he owned this when Covid hit in March 2020 and stocks got hammered. The covered call would hinder the recovery of this ETF, so he sold ZWK. But as the S&P started to rise, he re-entered ZWK. Also, he bought this for the 8.5% dividend yield at the time. A screaming deal. He bought around $20. It still pays around 6%. He expects US banks to do well.

banks

BUY

Likes the US bank sector. The covered call makes the banks more conservative; if banks go up, you have less upside, but if they go down, less downside. If you're in retirement, it's a perfectly fine ETF. We're in the early innings of a new credit upswing, consistent with an economic super-recovery. The banks will do well with curve steepeners.

banks

COMMENT

There are two elements to covered call strategies. There is the underlying stocks, and then the option premium. Volatility will continue to be high for the next couple years. Premiums will remain elevated. FIE pays back a part of your money back. There are a couple different elements to consider.

banks

TOP PICK

Banks. It is a play on US banks. It has a about a 9.5% yield. It has a very broad segment of the US banks. He uses it as an income play. Banks in a zero rate interest rate environment have trouble making money but he does not see it as a that bi a risk.

banks

COMMENT

Owns all the Canadian banks and you don't have to worry which one is going to lead. However, the US banks are also quite cheap relative to the Canadian banks.

banks

COMMENT

Because of volatility spiking up to tremendous levels, the option premium income went up everywhere. From now till the end of the year, you can expect volatility. You can expect 2-3% of extra yield from option strategy than the underlying stocks.

banks

DON'T BUY

A way to play US banks with a covered call. Similar to the ZEB for Canada. He's negative on banks because of covid and interest rates. He doesn't have any US or Canadian banks right now.

banks

Showing 1 to 15 of 22 entries

Covered Call US Banks ETF(ZWK-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 4

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 5

Stockchase rating for Covered Call US Banks 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.

Covered Call US Banks ETF(ZWK-T) Frequently Asked Questions

What is Covered Call US Banks ETF stock symbol?

Covered Call US Banks ETF is a Canadian stock, trading under the symbol ZWK-T on the Toronto Stock Exchange (ZWK-CT). It is usually referred to as TSX:ZWK or ZWK-T

Is Covered Call US Banks ETF a buy or a sell?

In the last year, 5 stock analysts published opinions about ZWK-T. 4 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Covered Call US Banks ETF.

Is Covered Call US Banks ETF a good investment or a top pick?

Covered Call US Banks ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for Covered Call US Banks ETF.

Why is Covered Call US Banks 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 Covered Call US Banks ETF worth watching?

5 stock analysts on Stockchase covered Covered Call US Banks ETF In the last year. It is a trending stock that is worth watching.

What is Covered Call US Banks ETF stock price?

On 2022-10-06, Covered Call US Banks ETF (ZWK-T) stock closed at a price of $26.37.

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