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Opinions John Hood
BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOPAST TOP PICKDec 27, 2017
John HoodStock 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%.
(A Top Pick June 30/17. Up 3%.) One of the main attraction is the covered call. It’s an income generating ETF. It’s Europe so you get the dividend as income and covered calls are capital gains. They don’t do full 100% coverage on the underlying assets, they do 50-60% depending upon what they see the market doing.