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BMO Covered Call Utilities ETF (ZWU $11.42)
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BMO Equal Weight Utilities Index ETF (ZUT $25.89)
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iShares S&P/TSX Capped Utilities Index ETF (XUT $32.72)
Q: I noticed this yesterday nov 13th: ZUT -2,9% , XUT - 1,5% ,the equal weight ETF being the underperformer by far ( double) on that day . I know that the " equal weight" version is probably a better choice for longer term..What utilities ETF would you suggest on CDN market and ranking your best choices !
5i Research Answer:
We would view the more established options as ZUT, XUT, and ZWU. We would prefer an equal weight approach but performance between ZUT and XUT will differ because the market-cap weighted version does have higher concentrations in the top 4 holdings. ZWU uses covered calls for added yield. We would lean toward ZUT here but all are fine options.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.