Q: Pat, could I get your recommendation on the BMO Canadian High Dividend Covered Call ETF (TSX: ZWC)? Thanks.

A: BMO Canadian High Dividend Covered Call ETF, $18.36, symbol ZWC on Toronto (Units outstanding: 21.1 million; Market cap: $387.4 million; www.bmo.com/gam/ca/investor/products/etfs), focuses on mostly high-quality Canadian stocks. Its top holdings are BCE at 4.2%; Pembina Pipeline, 4.0%; CIBC, 3.8%; Enbridge, 3.7%; Nutrien, 3.6%; Telus… Read More

Steer clear of these leaders & laggards

Here are some of the best- and worst-performing North American ETFs of the past year. But regardless of their return, we don’t recommend any of these funds.
The Leaders:
iPath Global Carbon ETN $21 (OTC symbol GRNTF; Market cap: $10.6 million) provides exposure to the global carbon-credits… Read More

The facts about … Stock options

Many aggressive investors find the lure of stock options hard to resist. However, despite that appeal, the vast majority of investors lose money with options.
Call options give the holder, or buyer, the right to purchase the underlying security at a specified “strike” price up until… Read More

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

A Yield to Caution

DIVIDEND 15 SPLIT CORP. $10.74 (Toronto symbol DFN; Shares outstanding: 43.9 million; Market cap: $471.5 million; Dividend yield: 11.2%; www.puremultifamily.com) holds shares of 15 big Canadian companies. These include BCE, Bank of Nova Scotia, Thomson Reuters, Loblaw Cos., Sun Life Financial, Enbridge and Telus. It… Read More