Q: May I ask your opinion on ZWB (BMO Covered Call Canadian Banks) and HYGH (iShares Interest Rate Hedged High Yield Bond ETF)? In addition, does “covered call” offer any appreciable advantage over straight bank stocks or bank ETFs? And does the hedging of HYGH add risk or unpredictability versus the “straight” HYG? Thank you.

A: The BMO Covered Call Canadian Banks ETF, $18.62, symbol ZWB on Toronto (Units outstanding: 68.1 million; Market cap: $1.3 billion; www.bmo.com/gam), holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either… Read More

This big bank taps cannabis industry growth

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Cannabis-Connected

While some of Canada’s banks were initially reluctant to participate in cannabis company financing, this institution has actively helped to facilitate large industry deals. At the same time, a key U.S. acquisition lets the bank benefit from the strong U.S. economy. In… Read More