Q: hi guys are these good to buy and hold do you think there dividends are safe
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Investment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
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.
Thanks for your help.
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.
Thanks for your help.
- Pason Systems Inc. (PSI)
- Knight Therapeutics Inc. (GUD)
- Ag Growth International Inc. (AFN)
- Evertz Technologies Limited (ET)
- BMO Covered Call Canadian Banks ETF (ZWB)
- Auxly Cannabis Group Inc. (XLY)
Q: Hi, As a retired income plus some growth investor which order would u add to or delete the above under 1% positions to tidy up my portfolio.
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO US High Dividend Covered Call ETF (ZWH)
- Vanguard U.S. Dividend Appreciation Index ETF (VGG)
Q: Hi General investing question. I have both ETF and actual stocks that are in the ETF. Less than 5 years away from retirement so still looking to build my portfolio. What's your opinion on holding ETF to accumulate income or buy the actual dividend stock and get both income and (hopefully!) growth? Thanks guys
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO MSCI Emerging Markets Index ETF (ZEM)
- BMO S&P 500 Index ETF (ZSP)
- BMO US High Dividend Covered Call ETF (ZWH)
- iShares Core MSCI EAFE IMI Index ETF (XEF)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
- BMO US High Dividend Covered Call Hedged to CAD ETF (ZWS)
Q: Looking to add some tax efficient income to an otherwise well diversified portfolio. What do you think of the above mentioned ETFs? Could you suggest a couple of more?
Thank you!
Thank you!
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Equal Weight Banks Index ETF (ZEB)
- BMO US High Dividend Covered Call ETF (ZWH)
- Vanguard U.S. Dividend Appreciation Index ETF (VGG)
Q: Hi 5i,
We are older retirees and have held ZWB and ZWH
in our RRIFs for income for many years. I just ran a Quicken report on performance and neither performed particularly well. I am about to switch ZWB for ZEB and ZWH for VGG. We can live without the monthly covered call income and I am assuming the replacements will outperform the covered call ETFs in a recovery. Your comments or suggestions are welcome. Thanks for the service.
Ted
We are older retirees and have held ZWB and ZWH
in our RRIFs for income for many years. I just ran a Quicken report on performance and neither performed particularly well. I am about to switch ZWB for ZEB and ZWH for VGG. We can live without the monthly covered call income and I am assuming the replacements will outperform the covered call ETFs in a recovery. Your comments or suggestions are welcome. Thanks for the service.
Ted
- Bank of Montreal (BMO)
- Sun Life Financial Inc. (SLF)
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
Q: Hi gang, I am looking into buying $11,000 for my daughters TFSA Acct. Should I buy $5500. BMO & 5500. SLF. Or 11,000. Zwb.And zwu or could you suggest me otherwise. Lots of time 15-20years. Open to any thoughts. Thanks be safe.
Alnoor
Alnoor
Q: Hello Team, I have quite amount of ZWB in registered account. I am thinking of selling and purchase individual holdings in the ETF - 4 banks ( TD , RY, BMO, BNS ), SLF, IFC, BAM.
Do you a see material benefit to this move from overall return perspective or just keep holding ZWB.
Thanks
Do you a see material benefit to this move from overall return perspective or just keep holding ZWB.
Thanks
Q: Hello
In support of Carl’s inquiry re zwb vs zeb performance similarity......I was watching the same positive correlation despite so many being negative on covered calls in up market.
Firstly, Carl should go to BMO etf website where they have an excellent webinar explanation of how the cc etf zwb, ZWC have been managed to benefit investors during the up side of the market.
Secondly, as it was explained......the simple answer to positive upside correlation (may not be permanent)..... It was achieved through extending out the option strike price to avoid shares being taken away, while at the same time experiencing the same or higher option premiums. The option premiums expanded and they played it well.
Active management in volatile market paid off in this case.
Dave
In support of Carl’s inquiry re zwb vs zeb performance similarity......I was watching the same positive correlation despite so many being negative on covered calls in up market.
Firstly, Carl should go to BMO etf website where they have an excellent webinar explanation of how the cc etf zwb, ZWC have been managed to benefit investors during the up side of the market.
Secondly, as it was explained......the simple answer to positive upside correlation (may not be permanent)..... It was achieved through extending out the option strike price to avoid shares being taken away, while at the same time experiencing the same or higher option premiums. The option premiums expanded and they played it well.
Active management in volatile market paid off in this case.
Dave
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO US High Dividend Covered Call ETF (ZWH)
- iShares S&P/TSX Canadian Dividend Aristocrats Index ETF (CDZ)
Q: What are your thoughts on these two etfs for retirement income going forward ?
Q: I understand that a covered call ETF will produce lower highs and higher lows compared to a non-covered call ETF. However, what would cause the ETF's to have an inverse relation on a trading day? For example, if we take ZEB and ZWB, I noticed on some trading days in the past (even before the current volatility), one ETF would be up a few % points, while the other ETF would be down a few % points.
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Equal Weight Banks Index ETF (ZEB)
- Vanguard FTSE Emerging Markets All Cap Index ETF (VEE)
- Vanguard U.S. Dividend Appreciation Index ETF (VGG)
Q: Most of my son's assets (all tfsa) are in the etfs zwb, vgg and vee. Would you suggest substituting any other etfs at this point with an eye to catching the rebound? Thank you.
Q: Thanks for your calming influence these days. Also appreciate your expression of empathy in your market update: we all recognize that what is unfolding brings a lot of emotional strain.
I own some ZWB because for the last few years didn't really see any catalyst to make banks move rapidly. Its Beta is 0.94. I am wondering if ZEB would be a better holding during the recovery with its Beta of 1.02. Does the "covered call" aspect of ZWB carry a downside for such market conditions?
Thank you.
I own some ZWB because for the last few years didn't really see any catalyst to make banks move rapidly. Its Beta is 0.94. I am wondering if ZEB would be a better holding during the recovery with its Beta of 1.02. Does the "covered call" aspect of ZWB carry a downside for such market conditions?
Thank you.
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Covered Call Utilities ETF (ZWU)
- BMO Canadian High Dividend Covered Call ETF (ZWC)
Q: Hello,
I am already knee deep in BMO covered call ETF's and down 20% - 30%.
I can dollar cost down and buy more , take the high yield and wait for price to rise
OR
Sell and move on (to what?)
I believe 5i is wary about buying covered call options during a crash due to limited upside potential.
What could I do at this stage to get income of an equivalent yield and possible upside?
Cheers
I am already knee deep in BMO covered call ETF's and down 20% - 30%.
I can dollar cost down and buy more , take the high yield and wait for price to rise
OR
Sell and move on (to what?)
I believe 5i is wary about buying covered call options during a crash due to limited upside potential.
What could I do at this stage to get income of an equivalent yield and possible upside?
Cheers
- Power Corporation of Canada Subordinate Voting Shares (POW)
- Fiera Capital Corporation Class A Subordinate Voting Shares (FSZ)
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO International Dividend ETF (ZDI)
- BMO Monthly Income ETF (ZMI)
- BMO US High Dividend Covered Call ETF (ZWH)
- CI Tech Giants Covered Call ETF (TXF)
- BMO High Yield US Corporate Bond Index ETF (ZJK)
Q: Hello 5i
This is a mixed bag inquiry. Looking for some perspectives on the above watch list. I m wanting to increase my overall US & tech sector exposure plus add to my CDN financials. All positions have yield income to weather the storm for the next few quarters
I m considering half positions (2%) in each.
This is a mixed bag inquiry. Looking for some perspectives on the above watch list. I m wanting to increase my overall US & tech sector exposure plus add to my CDN financials. All positions have yield income to weather the storm for the next few quarters
I m considering half positions (2%) in each.
Q: I've read the answers to previous ZWB questions and the risk seems minimal now with this decline in price to below $15, given these are Canadian banks. Are the two main risks, reduced bank dividends, and reduced or no income, causing further share price decline? What other risks may affect this ETF, and your thoughts on possible things that could cause a further price decline from here. Thank you.
Q: David Baskin said the big canadian banks have not reduced their dividends since 1964
would you say the dividend is safe on ZWB and is it a good time to buy.
Tom
would you say the dividend is safe on ZWB and is it a good time to buy.
Tom
- Manulife Financial Corporation (MFC)
- Sun Life Financial Inc. (SLF)
- BMO Covered Call Canadian Banks ETF (ZWB)
- CI Canadian Banks Covered Call Income Class ETF (CIC)
- CI U.S. & Canada Lifeco Covered Call ETF (FLI)
- iShares U.S. Insurance ETF (IAK)
Q: Have owned these for a very long time.Haven't done too bad just looking to maybe change things up.What's your opinion on these ones?Also can you offer a couple of ideas to replace these two.
Q: Hi gang, I am planning to into investing in bank ETF. Which one would you recommend zeb or Zwb? Or any other you would suggest? 3-5 years hold . Thanks
Alnoor
Alnoor
- BMO Covered Call Canadian Banks ETF (ZWB)
- BMO Equal Weight Utilities Index ETF (ZUT)
- BMO Equal Weight Banks Index ETF (ZEB)
Q: Hi gang, I have some cash I would like to park for rrsp Acct . Any suggestions I will be happy with total 4-6% returns. In my mind comes zeb-zwb or pwf. Risk? Thanks. Alnoor