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Opinions Larry Berman CFA, CMT, CTA
BMO Europe High Dividend Covered Call Hedged to CAD ETZWE.TOBUYNov 02, 2020
Larry Berman CFA, CMT, CTAStock 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%.
In general, the dividend is stable in the current situation. Because volatility is increasing, the covered call is increasing yield. It is one of his favourite ways to play international dividends. ZWP would be for the short term when you want exposure to the currency.