Q: Thinking about starting a position in ZWE for exposure to Europe. Your thoughts on timing and the fund would be appreciated.
Thanks Steve
Thanks Steve
5i Research Answer:
For general European, high dividend exposure we would consider it a good fund. Fees are a bit high at 0.70% but for a covered call fund that is typical. Note that the fund will lag in a rally because of the covered calls, but the options will provide a bit of downside cushion in a correction. Yield is 6.69%. Europe is doing much better these days as investors respond to its much lower valuation. We would be fine buying now for an income-focused investor. It is hedged on currency.