This ETF’s high yield comes with higher risk

This ETF’s high yield comes with higher risk

This ETF’s 6.8% dividend yield looks very appealing, but it conceals several risks for investors.

The fund’s currency hedging only favours investors under certain conditions, and the ETF’s need to buy covered call options can run up brokerage commissions and diminish overall returns.

Turn the key… Read More

U.S. trade talks could check growth for Exco Technologies

U.S. trade talks could check growth for Exco Technologies

Pat McKeough recently replied to a Member of his Inner Circle who asked whether a Canadian stock that specializes in auto parts rates a buy, sell or hold.

Exco Technologies has two business segments, with automakers comprising the bulk of its clients. The company has… Read More

Q: Hello. I am a new member. Could you please give me your opinion of ZWE—an exchange-traded fund listed on Toronto. This ETF has a high yield of 6.8%. Thank you for your response.

A: BMO Europe High Dividend Covered Call Hedged to CAD ETF, $21.18, symbol ZWE on Toronto (Units outstanding: 33.9 million; Market cap: $718.0 million; www.bmo.com/gam/ca/investor/products/etfs), holds mostly high-quality European stocks. These include Swiss Re AG, HSBC Holdings plc, Zurich Insurance Group, BMW, Total SA, Teliasonera… Read More

Canadian auto stock continues to roll out aggressive strategy

Canadian auto stock continues to roll out aggressive strategy

A Member of Pat McKeough’s Inner Circle asked him recently about a Canadian stock that sells a variety of well-known vehicles through a wide network of dealerships across the country. AutoCanada continues to grow by acquiring new dealerships. This year it has added two dealerships… Read More