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BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOCOMMENTOct 26, 2020Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
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 play on high dividend players with a covered call in Europe. ZWP has exposure to the Euro while ZWE does not. One of the holding is SWP, which is the German stock that took a beating today. Dips are good to buy and for now, he prefers ZWP for the foreign currency exposure.