BMO Europe High Dividend Covered Call Hedged to CAD ET (ZWE.TO)

He likes the covered call overlay and yield around 7%. He does not like the risk in Europe, but it is lower than North America. It is a diversifier from Canadian and US dividend holdings. He would not buy it here. He would lighten up. He would buy it back on a pullback.

BMO Europe High Dividend Covered Call Hedged to CAD (ZWE-T) or BMO US High Dividend Covered Call (ZWH-T)? He has a thesis that the US’s outperformance of the equity and currency markets is over. We have had 7 years of a structural US$ Bull market, and their equity market is expensive with headwinds on earnings. Europe has the unique situation where everybody recognizes the structural problems, but those are already priced in.

ETF to take advantage of the drop in UK and European stocks? None just yet. Depending on the type of investor you are, and your tolerance for risk, BMO Europe High Dividend Covered Call Hedged to CAD (ZWE-T) is an ETF that is a way to get dividends from Europe with a Covered Call overlay. In an uncertain environment, you are getting over a 7% yield and volatility. This will be a fine one to nibble at into weakness, but could easily fall another 10%.

Hedged. Covered call overlay. Europe. 7-8% dividend. It is interesting, provided you like Europe. There is some risk involved.

BMO Europe High Dividend Covered Call Hedged (ZWE-T) or Vanguard FTSE Developed Europe Index (VE-T)? Both well-designed but very different in the kind of return profile they give. This one holds a stock portfolio, and writes Calls. If there is a strong Bull market and the stocks are called away, you won’t participate fully in the upside. The covered call is actively managed, so if strike prices are a little out of the money, they end up delivering a very high income stream, but you are selling a little bit of the upside. If European equity markets rally very strongly, this will not offer you the same type of participation as (VE-T).

European Stocks’ ETF. His favourite way to play it is ZWE-T. Quality EU stocks with a covered call overlay. You will get a yield of about 7%. It is hedged so you don’t have to worry about currencies.

Do you wait until it is decided if Britain exits the Euro. Spain has an election the next day and could elect an anti-EU government. Big money portfolios will not dump their UK holdings. Don’t worry about ZWE-T. It is a great way to play Europe.

Companies in Europe pay higher dividends than North America on average. They are quality companies. There is a covered call overlay and it is currency hedged.

Not a big fan of too many moving parts in an ETF. However, Europe is a market he likes. These high-yield European stocks are all good. They are dominated by financial institutions. The covered call strategy is not a bad idea, and will boost your income. He finds it pretty expensive.

Basket of high dividend European payers with covered call overlay and hedging of currency. Sustainability of the dividend is related to that of the underlying companies. The volatility of the options defines the covered call overlay premium. It targets 7% overall return. He loves it as exposure, but if the UK votes to leave the EU that would be disruptive to markets. Wait until after the June vote to buy, or perhaps just buy half now.

He is doubtful of the sustainability of the dividend. Large caps and a covered call. It is fine in a TFSA.

A very good way to play Europe. You’re getting a dividend yield of around 8% and the capital gains on the sale of the Covered Calls. The dividend, of course, is going to be treated as income, because it is not Canadian.

European good quality dividend paying stocks with a covered call overlay. It is a fine way to play in a defensive market. This is the way to do it as they hedge the currency risk out.

Euro. Covered call and hedged to CAD$. This was one of Larry’s ideas. He loves it for the principals.

This gives covered call premiums on top of high dividend paying stocks. You want to be careful of the currency situation, because it is not a hedged strategy. The ETF he likes when entering the European market is the Wisdom Tree European Hedged Equity ETF (HEDJ-N). Doesn’t see anything particularly wrong with this one, but hasn’t had a chance to look at it deeply. The European market is the right place to be for part of your portfolio.