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BMO Canadian High Dividend Covered Call ETF (ZWC $19.24)
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Global X S&P/TSX 60 Covered Call ETF (CNCC $13.00)
Q: Hello 5i,
I am curious as to whether or not both of these could be owned or if there is too much overlap. Do you have a strong preference for one over the other? Finally, do you consider one of these to be "safer" than the other?
Many thanks!!
Cheers,
Mike
I am curious as to whether or not both of these could be owned or if there is too much overlap. Do you have a strong preference for one over the other? Finally, do you consider one of these to be "safer" than the other?
Many thanks!!
Cheers,
Mike
5i Research Answer:
There is a fair degree of overlap, with both ETFs heavily-skewed towards the financial sector. CNCC is 'technically' safer in that its stock holdings are, on average, larger companies, representing the TSX 60. CNCC also has a bit better 5-year return and it would thus be our preferred choice of these two today. We do not think both are needed.