Q: In reference to Paul's question yesterday. That ZWU from 2017 to 2021 of that nice dividend 1/2 to 1/3 was a return of my own capital, Considering that, I'm surprised that 5I has recommended ZWU. What I thought was a very nice dividend is not. Now I'm wondering how many other covered call stocks are doing the same? The underlying stocks don't give a return of capital, right. Next I'm going to find out there is no Santa.
Read AnswerInvestment Q&A
Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.
Q: hello 5i:
can you tell me how much Return of Capital has been for ZWU dividends over the last 5 years?
thanks
Paul L
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Canadian High Dividend Covered Call ETF (ZWC)
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BMO Covered Call US Banks ETF (ZWK)
Q: A portion of my portfolio is invested in the BMO Covered Call ETF's. In their fund prospectus, they indicate that a portion of your return is a return of capital. Is this a return of invested capital or is this the return of the premiums collected from writing the calls against the underlying securities?
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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Terra Income Fund 6 LLC 7.00% Notes due 2026 (TFSA)
Q: I need to add income equities to the TFSA as the income target is underwater. With this, I'm pondering adding BMO Covered Call Canadian Banks ETF(ZWB-T) to the TFSA for extra income, rather than say ENB that I would prefer to hold in a trading account and also rather than hold a small capitalization stock like AW.UN. What do you say about this option, ZWB for a mate over the age of 71?
If you are aligned with this approach, are there other Covered Call ETFs that you would suggest from my consideration?
Many thanks for the hints!!!......Tom
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BMO Covered Call Utilities ETF (ZWU)
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BMO Laddered Preferred Share Index ETF (ZPR)
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iShares Canadian Financial Monthly Income ETF (FIE)
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Vanguard High Dividend Yield Indx ETF (VYM)
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BMO Covered Call US Banks ETF (ZWK)
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Global X S&P 500 Covered Call ETF (XYLD)
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JPMorgan Equity Premium Income ETF (JEPI)
Q: Hello, I'm recently retired. I am seeking income generating vehicles for my various, registered plans (RRSP, LIRA, TFSA) to invest in. I'm considering an investment in ZWU. I'm wondering if there might be a similar, utilities based, covered call, ETF available for the American market?
Lastly, if any of these ETFs might also be available without the covered call overlay and if you believe that those versions of the ETFs might provide better, mid-term probability of a greater Total Return; I'd be interested in your opinion, as well.
Thank you!
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Canadian High Dividend Covered Call ETF (ZWC)
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
Q: Hello 5i
In one of the recent questions it was said that you do not like covered call etf’s. I didn’t know that was the case. Maybe it isn’t, even i don’t know. I have concentrated my covered calls on American companies that i own. Also many uncovered puts. I have concentrated on the US because the premiums are much higher than on Canadian stocks. I have quite a few Canadian stocks, however. And i hate to see them languishing and unproductive. I have therefore been thinking of a way to make some money on them. The premiums are so low that it doesn’t seem to be worth the effort. But, covered call etf’s would be easier. I don’t know much about them, however. I wonder whether you might provide some information and some pros and cons. Whether you like the idea or not.
Thanks for the excellent service.
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Enbridge Inc. (ENB)
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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Mackenzie Floating Rate Income ETF (MFT)
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BMO High Yield US Corporate Bond Index ETF (ZJK)
Q: Could you please recommend at least three Canadian products (stocks, etfs, bonds, whatever) that have an annual yield of at least 6%, but are ‘lower risk’. If you could list them in order of least risky to most that would be greatly appreciated. Thank you.
Read Answer-
BMO Covered Call Utilities ETF (ZWU)
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BMO Low Volatility Canadian Equity ETF (ZLB)
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BMO US Dividend ETF (ZDY)
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BMO US High Dividend Covered Call ETF (ZWH)
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Horizons Active Cdn Dividend ETF (HAL)
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CI Health Care Giants Covered Call ETF (FHI)
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Hamilton Enhanced Canadian Bank ETF (HCAL)
Q: I have the above ETF,s in my TFSA in roughly equal weights along with a number of stocks. Is there sugnifcat any over lap here? Where would add first or all equaly? I know your not a fan of covered call ETSs. Any suggested changes or additions?
Read Answer-
BMO Covered Call Utilities ETF (ZWU)
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BMO US High Dividend Covered Call ETF (ZWH)
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BMO US High Dividend Covered Call ETF (ZWH.U)
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BMO Canadian High Dividend Covered Call ETF (ZWC)
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BMO Covered Call Technology ETF (ZWT)
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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Hamilton Enhanced U.S. Covered Call ETF (HYLD)
Q: I am a vlaue investor, 76 years old, good pension. 43 stocks, 16 ETF's including the above covered call ETF's. I do have some growth holdings (IWO, LNF, WSP).All are doing well except ZIM and SYZ (not worried). My question is the covered call holdings are 10% of my portfolio. Is 10% too much? I do enjoy the $650 a month dividends which have been consistent for the past five months.
Thank you
Stanley
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BMO Covered Call Utilities ETF (ZWU)
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Purpose High Interest Savings Fund (PSA)
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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Horizons High Interest Savings ETF (CASH)
Q: Howdy 5i,
My small business has a corporate investment account with funds sitting in cash that I'd like to invest for the next 1 to 3 years. GICs are not an option as I need liquidity if/when recession arrives. Do you have recommendations for relatively stable ETFs/SPDRs with high dividends?
Regards,
Garth
Q: I have had the impression that covered calls were a riskier type of investment but when I look at the beta, std dev, alpha, sharpe ratio, etc I don't see much difference between the two ETFs listed. Are they both considered about equal?
Read Answer-
BMO Covered Call Utilities ETF (ZWU)
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BMO Low Volatility Canadian Equity ETF (ZLB)
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BMO US Dividend ETF (ZDY)
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BMO US High Dividend Covered Call ETF (ZWH)
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Horizons Active Cdn Dividend ETF (HAL)
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iShares S&P/TSX Capped Energy Index ETF (XEG)
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CI Health Care Giants Covered Call ETF (FHI)
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Hamilton Enhanced Canadian Bank ETF (HCAL)
Q: I have the above in my TFSA along with 5 individual stocks currently.
Any gapes or duplication in the ETFs, Should I just add to each equally with any new contributions to an approx 10-12 % weighting for all and thereafter considerate on individual stocks for more growth torque.
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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BMO US High Dividend Covered Call ETF (ZWH)
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BMO Covered Call US Banks ETF (ZWK)
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BMO Covered Call Technology ETF (ZWT)
Q: Could I get your favourite enhanced income etfs for a registered and non registered account
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BMO Covered Call Canadian Banks ETF (ZWB)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Equal Weight REITs Index ETF (ZRE)
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BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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BMO Canadian High Dividend Covered Call ETF (ZWC)
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Horizons Marijuana Life Sciences Index ETF (HMMJ)
Q: Hello,
I own the whole list (weights 1% to 2%) thinking I was being diversified but maybe went too far.
1) I am on the right track to reduce to about 3 names?
2) Which names optimise income?
3) Alternative names that I might have missed?
Many thanks!
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BMO Covered Call Utilities ETF (ZWU)
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iShares Diversified Monthly Income ETF (XTR)
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iShares Global Monthly Dividend Index ETF (CAD-Hedged) (CYH)
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Harvest Equal Weight Global Utilities Income ETF (HUTL)
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Purpose Multi-Asset Income Fund (PINC)
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Vanguard Retirement Income ETF Portfolio (VRIF)
Q: Hi, looking to start one or two Canadian based etf. Retired, no investment out of Canada. I think I should have some. Would like monthly income, 4%+ ,moderate risk, some growth if possible.
I think Cyh is the only one with a little growth?
Could you suggest two etf’s you prefer, or suggest two from above you might have confidence in.
Thanks
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BCE Inc. (BCE)
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TC Energy Corporation (TRP)
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Fortis Inc. (FTS)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Equal Weight US Banks Hedged to CAD Index ETF (ZUB)
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BMO Equal Weight Banks Index ETF (ZEB)
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Pembina Pipeline Corp. (Canada) (PBA)
Q: HI!
In an income seeking portfolio, if one has a portfolio that is overweight financials, do you think it makes sense in the current environment to lighten up and add to pipelines and utilities due to the geopolitical events and risk of recession down the road. Thought in rate rising environment assets that benefit from rising rates were in favour but it seems telcos, utilities, and pipelines are moving more now. Obviously with price of oil, increase in pipelines is understandable and clearly yield curve is playing a role. What are your thoughts on whether increasing rates will eventually hurt utilities/pipelines. Thank you!
Q: How do you feel about ZWU today? Or would you prefer to own a pipeline company like ENB? Seems the number of anticipated rate increases has fallen in recent days given Russia's war on Ukraine. Looking for price stability and yield. Great service, thanks!
Read AnswerQ: Is there any tax implications on buying covered call ETFs like ZWU, ZWB in TFSA?
Read Answer-
Kinder Morgan Inc. (KMI)
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Williams Companies Inc. (The) (WMB)
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Enbridge Inc. (ENB)
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TC Energy Corporation (TRP)
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Fortis Inc. (FTS)
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Canadian Utilities Limited Class A Non-Voting Shares (CU)
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Algonquin Power & Utilities Corp. (AQN)
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Parex Resources Inc. (PXT)
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Superior Plus Corp. (SPB)
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BMO Covered Call Utilities ETF (ZWU)
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Enterprise Products Partners L.P. (EPD)
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Topaz Energy Corp. (TPZ)
Q: I hold 13% of my non-registered account in energy and utilities, spread across the following stocks, with a focus on long-term income.
Would you suggest any consolidations or removal of any of these positions?
AQN, 9.70% of total, 3% gain
CU, 4.78% of total, 3% gain
ENB, 21.43% of total, 31% gain
EPD, 7.50% of total, 2% gain
FTS, 8.14% of total, 1% gain
KMI, 7.54% of total, 6% gain
PXT, 7.19% of total, 15% gain
SPB, 8.48% of total, 3% loss
TPZ, 4.19% of total, 8% gain
TRP, 4.86% of total, 11% gain
WMB, 4.63% of total, 10% gain
ZWU, 11.55% of total, flat
Thanks as always for your excellent work! Aaron
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PPL Corporation (PPL)
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AT&T Inc. (T)
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Power Corporation of Canada Subordinate Voting Shares (POW)
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BMO Covered Call Utilities ETF (ZWU)
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BMO Canadian High Dividend Covered Call ETF (ZWC)
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Enbridge Inc (ENB)
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Algonquin Power & Utilities Corp. (AQN)
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Manulife Financial Corporation (MFC)
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Suncor Energy Inc. (SU)
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TC Energy Corporation (TRP)
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BCE Inc. (BCE)
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Bank Nova Scotia Halifax Pfd 3 (BNS)
Q: My wife has $75,000 to invest in her TFSA, in which she is also holding 100 shares of TD Bank along with 100 shares of TD in an RSP. She is retiring in a month has a defined pension plan, CPP, OAS. But she is still looking for dividend income either monthly or quarterly to supplement her income.
We are looking at going with "Beating the TSX Portfolio 2022" but also looking at ZWU and ZWC which look like they could bring in more income but higher fees. What are your thoughts? Thank you.
Brian