Investment Q&A

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BMO Equal Weight Utilities Index ETF (ZUT $25.00)
- $25.00 P/E (TTM): 18.29X Cap: $843M
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX $13.16)
- $13.16 P/E (TTM): 15.01X Cap: $903M
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Evolve Canadian Utilities Enhanced Yield Index Fund (UTES $8.94)
- $8.94 P/E (TTM): 17.13X Cap: $239M
- View UTES Profile
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Q: UMAX = covered call, UTES= covered call + 1,25% leverage. In a downtrend, UTES would probably go down around 25% more than umax (ex -10% vs -12,5%...) and ZUT.Since the markets are presently high +the economics, do you believe that there could be a significant probability of a downtrend in 2025 and in such case ,would it be safer to sell UTES for ZUT now (or another stock), in order to reduce the risk ?

Asked by Jean-Yves on September 03, 2025

5i Research Answer:

Keep in mind ZUT does not sell covered calls. In a downturn, call option premium will provide a...

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