Investment Q&A

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
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Q: ..thinking American midterm elections may be a catalyst if Dems win and dampen the economic momentum (and associated rate increases) going forward...under that scenario do you think utilities would be a good place for relative safety, yield and a possible rebound? thanks.

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Read Answer Asked by Curtis on October 16, 2018

• BMO Covered Call Canadian Banks ETF (ZWB $21.55)
  • $21.55 P/E (TTM): 12.51X
  • View ZWB Profile
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• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE $20.49)
  • $20.49 P/E (TTM): 51.4X Cap: $679M
  • View ZWE Profile
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• BMO Low Volatility Canadian Equity ETF (ZLB $54.88)
  • $54.88 P/E (TTM): 34.63X Cap: $5.19B
  • View ZLB Profile
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• BMO US High Dividend Covered Call ETF (ZWH $24.34)
  • $24.34 P/E (TTM): 50.23X Cap: $1.06B
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Q: Folks can you recommend one or a few ETFs that trade in US dollars that would compare with the ETFs listed. I want to put some US cash into lower beta equities and strategies and am thinking that the ETF fees may be worthwhile to gain the covered call approach and enhanced income that results at the additional cost of sacrificing upside in rising markets. Also any comments on this intended approach for an equity investor who is transitioning from a balanced to an income tilt is appreciated - all the best.

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Read Answer Asked by Ken on September 04, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
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Q: Hi, 5i
I have been baling out since the past 2 months .... so the cash is quickly accumulating. I found some good replacements and do not think it is so bad to get a solid 5% than a potential future 20% loss.
This morning, Berman has suggested zwu as a good investment.
Your opinion would be appreciated, and your reason why you like it/ do not like it very helpful.
CDJ

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Read Answer Asked by claude on August 14, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: Morning,

I have a 2/3 position in ZWU and like it for the 3 sector exposure, covered call and high yield with DRIP. Would now be a good time to add the other 1/3 or wait until after the summer? What are your thoughts on it's exposure and stability for a long term hold?

Thanks!

Craig

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Read Answer Asked by Craig on July 03, 2018

• BMO Covered Call Canadian Banks ETF (ZWB $21.55)
  • $21.55 P/E (TTM): 12.51X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Canadian High Dividend Covered Call ETF (ZWC $18.90)
  • $18.90 P/E (TTM): 27.39X Cap: $1.71B
  • View ZWC Profile
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Q: Hello,
How effectively can ZWC replace our ZWB and ZWU holdings?

Thanks for your efficient service and re assuring advice.
regards

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Read Answer Asked by Arzoo on June 27, 2018

• BCE Inc. (BCE $35.52)
  • $35.52 P/E (TTM): 76.89X Cap: $32.89B
  • View BCE Profile
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• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: Hi Peter, Ryan, and Team,
What is your opinion of a recent suggestion by Larry Berman that "If you want to replace it (BCE), he would look at ZWU-T because it gives you all the Telco's. It gives you a couple in the US as well as pipelines and utilities. He is not looking for a lot more downside. It pays north of 6%".
We own BCE in my RRIF (up slightly) and my wife's RRSP (down quite a bit) and am wondering about Berman's strategy. As always, your advice is valued immensely.

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Read Answer Asked by Jerry on June 19, 2018

• BMO Covered Call Canadian Banks ETF (ZWB $21.55)
  • $21.55 P/E (TTM): 12.51X
  • View ZWB Profile
  • View Questions on ZWB
• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: What are your views on these ETFs? Would this be a good time to buy these ETFs? Is one safer than the other in a broad market downturn?

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Read Answer Asked by Glen on June 07, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Canadian High Dividend Covered Call ETF (ZWC $18.90)
  • $18.90 P/E (TTM): 27.39X Cap: $1.71B
  • View ZWC Profile
  • View Questions on ZWC
• BMO Europe High Dividend Covered Call ETF (ZWP $19.56)
  • $19.56 P/E (TTM): 51.4X Cap: $945M
  • View ZWP Profile
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Q: Currently which ETF's would you prefer purely for income? Thanks. Peter

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Read Answer Asked by Peter on May 30, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
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Q: ZWU pays about 7% currently. Is there a potential risk of a noticeable distribution drop (other than if the ETF price rises)? Thank you.

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Read Answer Asked by ANDY on May 25, 2018

• Enbridge Inc. (ENB $65.03)
  • $65.03 P/E (TTM): 22.85X Cap: $140.54B
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• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: What are the advantages and disadvantages in buying ZWU versus ENB for long term hold with both income and capital appreciation in mind

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Read Answer Asked by ANDY on May 22, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
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Q: Hi 5i,

Could I get your thoughts on ZWU.
Would it be a good time to pick some up?

Thanks

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Read Answer Asked by Stephen on May 10, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• iShares S&P/TSX Capped Utilities Index ETF (XUT $30.89)
  • $30.89 P/E (TTM): 45.05X Cap: $323M
  • View XUT Profile
  • View Questions on XUT
• BMO Canadian High Dividend Covered Call ETF (ZWC $18.90)
  • $18.90 P/E (TTM): 27.39X Cap: $1.71B
  • View ZWC Profile
  • View Questions on ZWC

Q: Hi,
Would you please rate: ZWU XUT ZWC (best first), for a 5 Years hold!
Thanks

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Read Answer Asked by Fernando on April 04, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• iShares S&P/TSX Capped Utilities Index ETF (XUT $30.89)
  • $30.89 P/E (TTM): 45.05X Cap: $323M
  • View XUT Profile
  • View Questions on XUT
• BMO Canadian High Dividend Covered Call ETF (ZWC $18.90)
  • $18.90 P/E (TTM): 27.39X Cap: $1.71B
  • View ZWC Profile
  • View Questions on ZWC

Q: Hi 5i, In a previous Q/A you said "covered call ETFs can underperform in a bull market" can you please elaborate on this?.
Would you please rate: ZWU XUT ZWC (best first)
I own ZWU, but down 10%.
Thanks

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Read Answer Asked by Fernando on March 19, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: Would now be a good time to take a long term position in ZWU for the covered call yield and some safety? Or does the sector rotation, rising interest rate potential and this news on MLP pipelines I don't fully understand mean perhaps wait a week or two as it might soften more?

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Read Answer Asked by Craig on March 16, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Canadian High Dividend Covered Call ETF (ZWC $18.90)
  • $18.90 P/E (TTM): 27.39X Cap: $1.71B
  • View ZWC Profile
  • View Questions on ZWC

Q: So if I'm seeking a 6% yield and wanted your one best pick for a safest both from an income as well as a capital preservation perspective ETF given current entry price which of these do I buy today why and is there another that you'd recommend instead - love - Ken

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Read Answer Asked by Ken on March 13, 2018

• H&R Real Estate Investment Trust (HR.UN $11.90)
  • $11.90 Cap: $3.25B
  • View HR.UN Profile
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• Algonquin Power & Utilities Corp. (AQN $8.05)
  • $8.05 Cap: $6.15B
  • View AQN Profile
  • View Questions on AQN
• Northland Power Inc. (NPI $22.48)
  • $22.48 P/E (TTM): 22.16X Cap: $5.88B
  • View NPI Profile
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  • View Reports on NPI
• SmartCentres Real Estate Investment Trust (SRU.UN $26.82)
  • $26.82 P/E (TTM): 16.82X Cap: $4.73B
  • View SRU.UN Profile
  • View Questions on SRU.UN
• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• American Hotel Income Properties REIT LP (HOT.UN $0.43)
  • $0.43 Cap: $33M
  • View HOT.UN Profile
  • View Questions on HOT.UN
• Crius Energy Trust (KWH.UN $8.80)
  • $8.80 Cap: $498M
  • View KWH.UN Profile
  • View Questions on KWH.UN
• Automotive Properties Real Estate Investment Trust (APR.UN $11.69)
  • $11.69 P/E (TTM): 12.15X Cap: $569M
  • View APR.UN Profile
  • View Questions on APR.UN

Q: Hello 5i Team.
I own these stocks for the dividend, in sectors that are currently getting hit due to rising interest rates (I assume). From your point of view, is it best, if one needs the income, to not be concerned with losing equity value and just continue collecting the dividend and hope that over time, these stocks will recover? Or is it best to sell and research other options. (I am 66 years young). Please also rate these stocks from best to least in terms of dividend safety and growth potential. Thank you for your wise advice.

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Read Answer Asked by Jocelyne on February 27, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight US Health Care Hedged to CAD Index ETF (ZUH $64.46)
  • $64.46 P/E (TTM): 82.38X Cap: $187M
  • View ZUH Profile
  • View Questions on ZUH

Q: Hi Peter & Ryan, when using sector ETF's such as Utilities and Health Care, would you take a full position or half in each. Do you have any others than those listed.
As always thanks for your great advice.
Ivan

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Read Answer Asked by Ivan on February 26, 2018

• iShares S&P/TSX Canadian Preferred Share Index ETF (CPD $13.48)
  • $13.48 P/E (TTM): 16.64X Cap: $1.04B
  • View CPD Profile
  • View Questions on CPD
• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU
• BMO Equal Weight REITs Index ETF (ZRE $22.37)
  • $22.37 P/E (TTM): 54.28X Cap: $587M
  • View ZRE Profile
  • View Questions on ZRE

Q: I am retired living on dividend income. I am interested in ZWU to increase my dividend income with its yield of 6.30%.
However, I noticed that it's cash distribution has been decreasing since Jan 2017. How is its cash distribution determined? With rising interest rates, will it's cash distribution continue to decrease? What income etf yielding over 4.5% would you recommend in this market? What percent position would you recommend for income ETFs?

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Read Answer Asked by Curtis on January 29, 2018

• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: Hi I was thinking of buying some zwu for income and hopefully a little growth it continues to drop what would be a good entry point and any reasons for the continue drop thanks

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Read Answer Asked by Dale on January 26, 2018

• BCE Inc. (BCE $35.52)
  • $35.52 P/E (TTM): 76.89X Cap: $32.89B
  • View BCE Profile
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• Enbridge Inc. (ENB $65.03)
  • $65.03 P/E (TTM): 22.85X Cap: $140.54B
  • View ENB Profile
  • View Questions on ENB
  • View Reports on ENB
• Enercare Inc. (ECI $28.99)
  • $28.99 P/E (TTM): 44.2X
  • View ECI Profile
  • View Questions on ECI
  • View Reports on ECI
• BMO Covered Call Utilities ETF (ZWU $11.39)
  • $11.39 P/E (TTM): 53.76X Cap: $1.88B
  • View ZWU Profile
  • View Questions on ZWU

Q: Could you please rank these holdings - in terms of a hold...If i wanted to raise some cash, which would you sell first in order?

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Read Answer Asked by Jeff on January 26, 2018