BMO CDN HIGH DIV COVERED CALL ETF (ZWC.TO)…

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BMO CDN HIGH DIV COVERED CALL ETF (ZWC.TO)

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22.43

-0.00 (0.00%)

as of Jun 19, 2026, 7:55:01 pm Market Open.

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COMMENT

ZWC would be his favourite so he can be more defensive. If you are bullish, ZDV would make sense. Markets have some squeeze potential and there is liquidity coming to markets from stimulus. He does not see materially higher highs than where we are up until early next year.

COMMENT

The caller owns the many of the underlying stocks and is considering switching to this ETF. ZWC is a covered call so you will get some enhanced yield. If you seek yield, it could be a better way to go. If you want flexibility, then the individual stocks makes sense. Hard to know the right answer.

HOLD

It has the TSX covered, banks, oils and everything else. You are after it for the yield. Sometimes the managers get overwhelmed and then sell the call further out so they are very good. They are pretty agile. He would not be in a race to sell.

HOLD

They are both high dividend covered call ETFs. They have underperformed compared to tech and growth stocks. If you want good dividend paying stocks, it is a fine investment for buy and hold. They only write the options on half the positions to enhance yield.

WEAK BUY

ZWC vs. ZWB He'd stay away from financial services, as with the low rates it's hard for the banks to be profitable. He'd rather go with the broader index. The more volatile a price, the higher the premium you'll get on a covered call. The covered call strategy here hasn't delivered in this volatile environment.

WAIT

He uses ZWC to be defensive when he's close to the high point to have more buffer for when the markets go sideways or down. From a low point, you want ZDV to get dividends without covered call. He would wait for a pullback before putting new money in.

COMMENT

When you have written away the upside to get the higher yield, you give away some of the upside as in ZWC-T. If the market will be sideways then this a good holding.

BUY

If you want to stay in the market, which he recommends, this should give you a better experience over all.

COMMENT

ZWC vs. ZWB Both offer additional income through covered calls. ZWC yields 8.4% plus the dividend and premium from the covered call strategy. ZWB (Canadian banks) pays 6.5%. Both you pay 72 basis points in MER. ZWC is more diverse with banks, pipelines and telecoms so he prefers ZWC. Warning: long-term, covered calls can lag the underlying securities if there's a bull market in those securities. In an up market, he prefers the stocks themselves or other ETFs.

HOLD

He has held this before, but sold it when the market began to decline. A covered call is good in a flat or rising market, but in a down market it can impede future recovery. The fund usually only has about 50% of its holdings with covered calls and its yield is about 8%. He thinks it is worth holding.

COMMENT

A good, plain-vanilla product. The covered call is a good defensive strategy; whatever happens at least you get the covered call income. This is perfectly fine. But right now he's worried about the global market--which territory will go down the most in a bear market? He feels we're in the 9th inning of the cycle and expects a bear market sometime. Even a good product like this will lose money if the market turns.

BUY

Very good yield of around 6%. You give up some of the upside with the covered call. Holds some in his more conservative accounts. Remember the management fees are quite high with these covered calls.

BUY

It's an income product, so don't worry about the stock price. The covered calls add a bit more distributions to the dividend. Is it enough for you? This is a bond proxy, really.

COMMENT

ZWC-T & ZWU-T. He loves ZWU-T as a defensive holding. ZWC-T is a broad TSX with a covered call overlay to enhance yields. Canada should underperform the world for a long time as a quarter of the index is the banks. The best two growth areas in the world for a couple of decades are healthcare and technology. These two ETFs would overweight Canada if they were your whole portfolio. ZWE-T and ZWS-T are preferable to include in a portfolio.

COMMENT

Broad exposure to the best dividend payers in Canada. It is a great sector but he thinks we are going into a global slowdown. The resistance level is problem well below the January lows. $16 is probably the bottom. ZWU-T would probably perform a little bit better.

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