Q: I buying this one in stead of the buying individual bank stocks given our uncertain environment. Any reason why this covered called ETF might not be good for a full weighting at this time?
Q: I often hear money managers talk about buying a specific stock (e.g. Apple to choose a simple one) and then writing covered calls against it ….. and emphasizing the prospect of winning both ways.
I am not keen on taking a course in options trading at this point.
Does it make sense to attempt the same kind of thing using etfs?
For example, in technology using XIT or TEC and pairing it with ZWT;
or other sectors too, such as energy XLE … or XLF for financials? In this case can you suggest a couple of covered calls - one for energy and one for financials?
Using yahoo charts, I compared ZWB to each of the big 5 banks for 1 year, 2 year and 5 year intervals. Each of the big 5 banks outperformed ZWB for all the intervals. It seems the only time ZWB might outperform the individual banks would be when the market is going down for a long time.
Q: Among banks, 5i seems to favour TD and BNS, though since 2019 patient investors have done well with just about any of the Big-Five-plus-NA.
But supposing interest rates are now set to rise, won't banks tend to find a trading range? In which case, wouldn't ZWB, with its covered call component, provide greater total return? Or do its MER and trading expenses claw back too much of its income?
Interestingly, since inception, ZWB's share price seems to have done as well as (for example) BNS, in spite of the potential for its positions to be called-away.
Q: Hi,
I have been considering these covered call ETFs for income as a long term hold. I am recently retired. On researching them however on their BMO fact sheets I see a MER of .71% and total expense of .92%. As well in the holdings on the fact sheets I see only about 0.1% of their holdings are classed as covered calls. Seems like a lot to pay in total expenses for only 0.1% of holdings in covered calls. A pure bank ETF or utilities ETF or would be much cheaper. Am I missing something?
Q: Looking to add more financials and sell off some technology. What would your choice be for 3-5 year growth…. SLF or the more conservative ZWB? Thanks
Q: Is this ETF a safe way to invest in the banking sector in a RRIF account for income and some growth and do you believe the strategy used by this ETF can outperform other ETF such as ZWB or ZEB. Can you suggest a couple of alternatives ETF that are more appropriate for a RRIF or do you feel it is better to just own the individual banks.
Q: Where do you see the greatest value in the market these days? Cdn Banks always seem like a go to when in doubt, ZWU also seems reasonably priced. Any thoughts on ETF's or specific companies that are positioned well? Thanks as usual.
Q: I have a portfolio weighted to US Tech Growth stocks. About a year ago, I sold some companies and moved 10% of my cash into 1) Gold (HEP) 2) Short term bonds (HFR), and 3) a Banking ETF (ZWB) to diversify. These three have proven to be losers for me. Does it make sense to keep any of these three for continued diversification or are there better ways to round out the portfolio with a bit of a safety net? Thanks!
Q: Which of these ETFs would you prefer for financial exposure? The fixed income component of FIE contains 20% CPD, which has had a nice run and is now approaching a 52 week high, 10% XCB (corporate bonds). The remaining 70% is banks and lifecos. ZWB, on the other hand, is 100% banks, with covered call premiums.
Q: I need to set up an annual income for my wife, for next 25 years. In TFSA and RRSP, using only ETF's. Dividend growth and HY dividends. Should have 5% yearly and 10% total return. Can you recommend the appropate ETF's. Vanguard/BMO/ I Shares (only)
Please NO EM ETF's One European OK--- Key is 5% annual income. Investment .5M$ It has to be buy and collect for 25 years. No input by my wife.
Thank you
Cec
Q: Looking for the best of both worlds ... income and some growth.
AND not finding bonds very compelling due to low interest rates.
AND as part of my holdings in the financial sector.
Would it make sense to buy and hold ZEB (4.7% yield) and ZWB (6.65%) ?
My thinking here is ZEB would capture more capital gains once interest rates start to move up and bank shares rise in value; while ZWB captures a higher yield in the meantime?
Of course I am also open to a better suggestion.