Pass on this ETF

BMO COVERED CALL CANADIAN BANKS ETF $23.26 (Toronto symbol ZWB) holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank).
The fund started up in January 2011. Its MER is a relatively high 0.72%.
BMO Canadian High Dividend Covered… Read More

Pass on this ETF

BMO COVERED CALL CANADIAN BANKS ETF $20.73 (Toronto symbol ZWB) holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either directly or through units of the BMO Equal Weight Banks Index ETF.
The… Read More

Pass on this ETF

BMO Canadian High Dividend Covered Call ETF $17.80 (Toronto symbol ZWC) holds mostly high-quality Canadian stocks. The ETF, launched in February 2017, holds $985.2 million of assets, and has a MER of 0.72%. The fund has 75 stocks. Current top holdings include TD Bank, Royal… Read More

Q: Pat, the bulk of my investments are in North America. I am looking at Europe and thought that an ETF holding solid blue chips would be best for me. As I also require income, I came across ZWP, which pays a very good dividend and holds high-quality companies. Do you think that this would be a good ETF at this time? Thanks.

A: BMO Europe High Dividend Covered Call ETF, $16.40, symbol ZWP on Toronto (Units outstanding: 63.6 million; Market cap: $1.0 billion; www.bmo.com/gam), invests in a dividend-focused portfolio of European stocks.
The fund started up in March 2018. Its MER is a relatively high 0.71%.
Its top holdings… Read More

Q: Hello all. Could I have your opinion please on CGFX, a gold ETF containing the largest gold miners. It pays a distribution yielding around 6%. They do this by writing covered calls on 25% of the portfolio. Too good to be true? Thanks.

A: The CI First Asset Gold+ Giants Covered Call ETF, $17.20, symbol CGXF on Toronto (Units outstanding: 24.8 million; Market cap: $426.6 million; www.firstasset.com), holds an equal-weighted portfolio of the 15 largest gold and precious-metal companies as measured by market capitalization. Each is listed on… Read More

Pass on this ETF

BMO COVERED CALL CANADIAN BANKS ETF $18.43 (Toronto symbol ZWB; TSINetwork ETF Rating: Conservative; Market cap: $1.9 billion) holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank) either directly or through units of the BMO Equal… Read More

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