BMO Covered Call Utilities ETF (ZWU.TO)

Utility stocks are the lowest end of the spectrum in terms of volatility. There is some energy exposure so this one really isn’t a risk free dividend. It will be less volatility than pure energy. We should have a bottom in the energy sector in the next couple of months.

(A Top Pick June 7/13. Up 13.53%.) This got hit when there was the tapering tantrum, but has come back quite nicely. Has a fairly reasonable yield if you are looking for that. Prefers ZLB-T. The Call aspect, where they get called away in a rising market, has not helped their earnings at all.

As long as you understand how covered calls work i.e. they limit your upside. It has been a great performer. 5.7% dividend yield.

As equity-based products go, this is a pretty conservative one. It is diversified, so that makes it conservative, but utilities are conservative because you have a steady income stream. You also have the covered call overlay which gets you the income of covered calls. If things go up a lot, you get called away. A good, steady sort of thing to use for people who want growth, but are still conservative in trying to get it.

Telcos and pipelines. Some US utility exposure and a covered call overlay. Telcos are about 15%.

Covered calls work where a stock doesn’t move much, so this is a great opportunity for covered calls.

Likes this because it is a Covered Call situation. Utilities did get beaten up. This is something that he would like to have as part of his income side of a portfolio. Yield of 6.25%.

It is down because when Fed started talking about tapering, everything interest sensitive went down. It had nothing to do with covered call strategy. 6.5% yield.

A covered call ETF on utility stocks. Has not done particularly well because utility companies tend to be interest-rate sensitive. As interest rates rise, a lot of the utility companies tend to go down because they tend to be supported by the dividend. Yield of 6.32%.

This is good for a senior because utilities tend to be low volatility. The Covered Call provides income. As discussed in previous shows, the upside is taken away somewhat by the risk of being called away. But, the downside is also muted because you are getting the income from writing the Call Options, even if the underlying security is dropped.

Utility sector is very susceptible to increases in interest rates. Likes this and the covered call layover on this. Would not Buy the street utilities ETF. Don’t have this is a huge part of your portfolio but keep it to something like 5%. Good yield of around 5.5%-6%.

Down about 15-20% over the last little while. Has been shying away from covered call strategies. He would hold. 6.7% yield.

Covered Calls work great in trendless markets. This one pays about 6.8% yield. Comparing this to the ZUT-T (not a Covered Call utility) this has probably done marginally better. If you think the market is going to be trendless, this is a way to go. Otherwise, you just buy the utilities and forget the Call.

Likes it. Normalization of interest rates since May has hurt this stock. Also they own Telcos which are under pressure because of Verizon. 6% yield.

6% yield is what he bought it for. He would tend to go with the financials. The problem with the covered call ETF is that if you bought 3 of the banks, you would probably have done better so he sticks with the banks, rather than this ETF. Over the last 3 years banks have been sideways but dividends increased. Would prefer financials over real estate.