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Opinions Mike S. Newton, CIM FCSI
BMO US High Dividend Covered Call ETFZWH.TOHOLDOct 06, 2016
Mike S. Newton, CIM FCSIUnknown
$19.50
Stock price when the opinion was issued
$27.25
As of Jun 19, 2026. Market Open.
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TOP PICK
Likes it as a sector play--high-dividend US stocks--and for the dividend of 6%. It's broadly based, and bonds don't pay much or anything.
John HoodOwned
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COMMENT
There is space for these ETFs for yield seekers. One of the challenges in 2020 was that dividend paying stocks did terrible relative to technology that does not pay dividends. Still likes them for conservative investors.
Larry Berman CFA, CMT, CTAUnknown
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WEAK BUY
ZWE-T vs. ZWH-T. With covered calls, when you are in a slightly up or down or sideways market, the call brings in a premium and dampens the volatility. But when it is in a very strong uptrend, the covered write lops off the top of the uptrend. The upside is capped. In a sharp declined followed by a snap-back rally, the same thing applies. You should have both for covered write portfolios to increase diversification if you are going to have them.
A very controversial part of the US market right now. The dividend market, which has been a darling for a very, very long time, may start encountering a little bit of stumbling when rates start moving back up. This is generally an excellent investment, but it is going to cause you a bit of grief in the short term. When you add on the covered call side of it, that is fine in a very volatile kind of sideways moving market. It will probably hold its own for a little while, but you are going to have a lot of people telling you that you shouldn’t own it. He would keep your weighting at about 4% of your portfolio.