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Opinions Terry Shaunessy
BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOCOMMENTSep 23, 2015
Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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Likes exposure to Europe, of which many Canadians have minimal exposure. ZWE looks at the dividend yields of its holdings. Plus, it does some covered writing, which gives you income along the way in tradeoff for upside. Attractive yield, but consider also owning some European stocks on their own. Nice piece of diversification for your portfolio, good bit of income.
In general, Europe is good value compared to US or NA markets. Lower PE and book value, higher dividend. This one has high dividend stocks, with covered call overlay. Up 11% YTD. Makes sense for cashflow. But ZWP, holding underlying securities, gives better total return. Yield is around 7.5%.
This is a Covered Call, which typically gives you a higher dividend payout, because they have the ability to generate more income. Volatility is pretty high right now, typically a good thing when you are in the options market. He tends not to use covered call instruments. The more moving parts that you have in an ETF, the more likely that something is going to go wrong.