Is ZWB a good investment?
Is ZWB a good investment?
The bottom line Using ETFs such as ZWB and ZEB can be great ways to buy shares of companies with less bank-specific risk. With the coronavirus threatening our economy, I would lean towards buying ZWB at the moment. It has a higher yield, and the covered call premiums help mitigate the downside.
Which is better ZWB or ZEB?
ZEB is super simple. It holds six Canadian banks in roughly equal proportions. ZWB owns the six banks, but also writes call options against them to generate a higher payout. Its yield is currently 5.2 per cent compared to 3.3 per cent for ZEB.
What is the yield for Zwb?
BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:zwb) Dividend History by Quarter
| Announced | Period | Yield |
|---|---|---|
| 2/24/2021 | Monthly | 6.38% |
| 1/27/2021 | Monthly | 5.68% |
| 12/29/2020 | Monthly | 5.76% |
| 10/28/2020 | Monthly | 6.47% |
What is the MER for Zeb?
BMO ZEB MER And Fees BMO ZEB ETF charges a management fee of 0.25%, and it comes with a Management Expense Ratio (MER) of 0.28%. The ETF is not as pricy compared to many other ETFs offering exposure to the banking sector in Canada.
Is Zeb a good ETF?
BMO ZEB Asset Allocation The Canadian banking sector is well-known for providing reliable long-term returns and paying shareholder dividends. It means that despite the apparent capital risk, it is a relatively safer ETF to consider investing in than other ETFs that have a narrow focus on a few equity securities.
Does Zwb pay a monthly dividend?
BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:zwb) pays Monthly dividends to shareholders.
Does Zeb pay a dividend?
BMO Equal Weight Banks Index ETF (TSE:ZEB) pays Monthly dividends to shareholders.
Are dividend stocks worth it?
Dividend-paying stocks provide a way for investors to get paid during rocky market periods, when capital gains are hard to achieve. They provide a nice hedge against inflation, especially when they grow over time. They are tax advantaged, unlike other forms of income, such as interest on fixed-income investments.
What is Zwb dividend?
ZWB.TO Dividend: 0.10 for Nov.
Should I invest in ZWC or zwb?
In an up market, he prefers the stocks themselves or other ETFs. ZWC vs. ZWB Both offer additional income through covered calls. ZWC yields 8.4% plus the dividend and premium from the covered call strategy. ZWB (Canadian banks) pays 6.5%. Both you pay 72 basis points in MER. ZWC is more diverse with banks, pipelines and telecoms so he prefers ZWC.
What is the difference between zzeb and zwb?
ZEB is equal weight where as ZWB is equal weight banks with a covered call overlay. When you think the markets will go sideways or down, covered calls will perform better. However, the covered call gives away some of the upside potential so if you are bullish on growth, forego the covered call.
What is the BMO covered call Canadian banks ETF (zwb)?
The BMO Covered Call Canadian Banks ETF (ZWB) has been designed to provide exposure to a portfolio of Canadian banks while earning call option premiums. The Fund invests in securities of Canadian banks, and dynamically writes covered call options.
