skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. ZWU: Hi, Do you think now is a good entry point for a long term hold on ZBU - or in your opinion it would be better to wait until rates start to decline? [BMO Covered Call Utilities ETF]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hi,

Do you think now is a good entry point for a long term hold on ZBU - or in your opinion it would be better to wait until rates start to decline?

Thanks as always for your advice.
Asked by Brad on July 27, 2023
5i Research Answer:

Timing is rarely perfect, but the market typically prices in events 'before' they occur. The utility sector should be a big benefactor when rates actually peak, and even moreso when hey decline. Thus, we would be OK starting an initial position today, and building accordingly as the rate picture becomes more clear over the balance of the year. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.