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BMO Covered Call Utilities ETF (ZWU $11.55)
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Harvest Equal Weight Global Utilities Income ETF (HUTL $19.48)
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX $13.44)
Q: Over the past 3 years, I have converted my portfolio to ETFs. I currently hold ZWU and UMAX at 10% of the portfolio. I plan on adding 5% HUTL to have some exposure to International Utilities. Your comments please?
5i Research Answer:
While we cannot personalize responses, we tend to be cautious around covered call ETFs in general, but to diversify outside of just North American utility stocks, we think HUTL looks decent. It has $437M in AUM, a yield of 8.1%, but roughly 45% of its holdings are North American, and these names will likely have a strong overlap with UMAX and ZWU. As a result, only about half of HUTL will likely act as diverisfication away from ZWU and UMAX.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.