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

ETFs attract more mutual-fund assets

Canadian-listed exchange-traded funds continue to attract assets previously invested in mutual funds. By the end of 2018, Canadian ETFs had assets under management of $157 billion, or 6.6% more than a year earlier. The value of ETF assets has also doubled over the past 3.. Read More

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

New ETFs for the Canadian market

ETFs are flooding the market and Canadians are increasingly spoiled for choice. Here’s four new, or upcoming, launches. We’re not entirely convinced of their investment merits, but we are impressed by the diversity and creativity.

WISDOMTREE EMERGING MARKETS DIVIDEND INDEX ETF $27 (Toronto symbol EMV.B; Market… Read More