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Investor Insights

This summary was created by AI, based on 10 opinions in the last 12 months.

BMO Premium Yield ETF (ZPAY-T) is recognized for its unique covered call strategy, primarily focusing on U.S. large-cap stocks. It offers a yield of approximately 6%, making it particularly appealing for income-focused investors such as retirees. Many experts highlight the ETF's ability to mitigate risk, suggesting that it generally performs with half the volatility of the broader market, both in downturns and rallies. Additionally, the tax-efficient nature of its U.S. stock exposure is an attractive feature for Canadian investors, especially those planning expenditures in U.S. dollars. However, it is crucial for potential investors to understand the intrinsic risks associated with covered call ETFs, which can limit upside potential while providing some downside protection.

Consensus
Positive
Valuation
Fair Value
Similar
XIU,Canada
BUY
Seeking 4% dividend in a money-market ETF

Gives exposure to the US with a lot less risk and tax-efficient distribution though it's market risk, not the safer money-market risk.

BUY

He helped developed this ETF 5 years ago. He uses it. It targets 50% position in a long in a covered call + 50% holds a T-bill and sells puts to generate income. This yields 6%, and has half the volatility of the US stock market. Is tax efficient, because the dividends off the options are treated as capital gains. 

BUY

He helped developed this ETF 5 years ago. He uses it. It targets 50% position in a long in a covered call + 50% holds a T-bill and sells puts to generate income. This yields 6%, and has half the volatility of the US stock market. Is tax efficient, because the dividends off the options are treated as capital gains. 

BUY

He uses it a lot. It writes puts on stocks to buy lower and sells calls. It pays a 6% yield. If the market slides, this will fall at half the rate of the market, and if the market rallies, this will rise at half the rate, but yet get tax-efficient income off US stocks. But this is not immune to market volatility.

COMMENT
Ex-US, how to get buffer-type exposure to foreign markets?

Really only in the US, in the Innovators series, but only in USD, which is risky now. ZPAY-F gives you exposure to the US, but with the currency hedge, which he prefers. Buffers limit upside, but protect in the downside. It's like a 60/40 balance portfolio and it's tax efficient.

BUY

The version that gives you exposure in USD has given you a stronger return in past years. He prefers /F, the one that gives you the hedge.

COMMENT

It is a covered call strategy on U.S. stocks. It is good going forward and holds U.S. large cap companies. You need to understand the downside risk of covered call ETF's.

BUY
US financial ETF for a retiree.

Gives you broad exposure beyond just the financial sector, with about half the risk of the US equity market. Very tax-efficient. Nice yield in the 6% range.

BUY

Good way to add diversification for a retiree. Gives you some US exposure to big banks and tech, and with a lower risk profile.

BUY
Retired, no pension, relies on dividends for income. ZWB or ZPAY?

A put/write covered call income-focused strategy using options can generate extra income. ZWB is covered call banks. If you're bullish on the market, ZWB will give you more upside than ZPAY. If you're conservative on the market, and you think there's going to be more volatility, ZPAY will do better for you.

Right now in his dividend fund, he owns ZPAY but not ZWB. 

BUY
Funding an upcoming US vacation.

In USD, and you can buy it in your taxable USD account. Focuses on some of the biggest and best companies in the US. Tax-efficient. Better than withdrawing from your RRSP. Yield is ~6%.

BUY

Packaged ZPH and covered call together. He'd buy this instead of ZPH alone. 

BUY

Great dividend in US dollars. Conservative equity exposure with great defensive position. Would recommend buying, especially for Canadian snowbirds in USA. 

BUY

Fees generated from fund option writing is on account of capital. Good option for investors. 

BUY

Good defensive strategy. With economy poised for correction, good option for investors. 

Showing 1 to 15 of 51 entries

BMO Premium Yield ETF(ZPAY-T) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 11

Neutral - Hold Signals / Votes : 11

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 22

Stockchase rating for BMO Premium Yield 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 Premium Yield ETF(ZPAY-T) Frequently Asked Questions

What is BMO Premium Yield ETF stock symbol?

BMO Premium Yield ETF is a Canadian stock, trading under the symbol ZPAY-T on the Toronto Stock Exchange (ZPAY-CT). It is usually referred to as TSX:ZPAY or ZPAY-T

Is BMO Premium Yield ETF a buy or a sell?

In the last year, 22 stock analysts published opinions about ZPAY-T. 11 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 BMO Premium Yield ETF.

Is BMO Premium Yield ETF a good investment or a top pick?

BMO Premium Yield ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for BMO Premium Yield ETF.

Why is BMO Premium Yield 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 Premium Yield ETF worth watching?

22 stock analysts on Stockchase covered BMO Premium Yield ETF In the last year. It is a trending stock that is worth watching.

What is BMO Premium Yield ETF stock price?

On 2025-05-15, BMO Premium Yield ETF (ZPAY-T) stock closed at a price of $31.57.