BMO US High Dividend Covered Call ETF (ZWH.TO)

He owns a lot of this, because he's getting covered calls from the U.S. market. Has decent growth.

Not a bad investment. Get the prospectus and look at the names. It doesn’t hold small caps, it buys household names. Cash flow, dividend, some potential for capital gain. Yield is around 5.2%.

(A Top Pick July 26/17, Up 14%) Going for the dividend. A lift in unit price is a bonus. A nice cash flow. Yield is north of 5%.

Keep holding? Likes it for the income. Not a bank ETF, it’s across the board high yielders. It has underperformed, because it’s a covered call. If an investor wants US banks, CAD hedged, look at ZUB or US financials.

ZPW-T vs. ZWH-T. ZPW-T has no capital growth – it is purely a yield play. ZWH-T can be paired to get downside protection. There is a third of the risk of the S&P-500.

ZWH-T and ZPW-T. Both he often recommends. This pair of ETFs offer you a great opportunity for exposure to the US. You have the best quality of dividend payers and a covered call and put-write overlay. He loves that strategy to play defense on the US market. Short term he thinks we will get a 5% or so pull back. This pair of ETFs will do well over the next 4 to 5 years.

This is an interesting class as it has a very high dividend yield. Part of the yield is made up of the covered calls. Just remember this will limit your upside potential so they would not recommend it as a large part of your portfolio. The ZWE-T ETF offers a similar exposure to Europe markets and is also good to have some in your portfolio. Yield 5.4%.

ZWH-T, ZPW-T. Great puts being written 10-20% below where holdings trade gives an imbedded margin of safety. You get a great source of diversity. He likes to pair these two when he is negative on the markets. He is going to be adding these to portfolios. It helps to mitigate downside while giving you some yield.

ZWH-T vs. ZWI-T. ZDY-T is dividend payers, the best US payers. ZWH-T has a covered call. In a downward market he likes the covered call overlay. In a strong market you don’t want it. He prefers ZDY-T right now.

Is it going to be hit with the impending war with China? A covered call will follow the underlying security just with the extra 3-4%. If the S&P is wacked by 12% this will be down 8%. On the other hand, he really likes this ETF and owns a lot of it.

Would the dissolution of NAFTA have any effect on this? This is a covered call on higher dividend paying US ETF's. He would see no reason to sell this because of NAFTA. No matter how NAFTA goes, this ETF should do well.

Unfavourable in a TFSA account because of the withholding taxes? This has some higher yielding bonds, but he has no issue with holding this.

He likes this. It has a really good yield of around 5%. Remember this is US$, so the dividend you are getting will not give you the dividend tax credit. However, you are getting capital gains on the sale of the options.

The decline over the summer was all currency. If North Korea escalates, the US$ could shoot up and then you would get an increase in the ETF.

This is how he takes his position in the US market. He has started adding his US exposure back after hedging previously. ZWH-T does not have a currency hedge version.