BMO Covered Call Utilities ETF (ZWU) has been designed to provide exposure to an equal-weight portfolio of utilities, telecoms and pipeline companies while earning call option premiums.
ZWU ETF Review
BMO Covered Call Utilities ETF (ZWU) call options are written out of the money, selected based on the option’s implied volatility, and are written in proportion to the securities’ weight. The option premium provides limited downside protection. The underlying portfolio is rebalanced in June and reconstituted in December. Options are rolled forward upon expiry. In addition, as ZWU is a fund of funds, the management fees charged are reduced by those accrued in the underlying funds.
| Manager | BMO |
| Ticker | ZWU |
| Inception | 2011-10-20 |
| MER | 0.71% |
| AUM | $1,760,620,000 |
| Holdings | 79 |
| Beta | 0.64 |
| P/E | N/A |
| Yield | 14.84% |
| Distributions | Monthly |
Top 10 ZWU Holdings
The top 10 investments of FTEC account for 50.1% of the 79 total holdings.
| Ticker | Name | Weight |
|---|---|---|
| ZUT | BMO Equal Weight Utilities Index ETF | 5.89% |
| ENB | Enbridge Inc. | 5.05% |
| PPL | Pembina Pipeline Corporation | 4.98% |
| TRP | TC Energy Corporation | 4.96% |
| FTS | Fortis Inc. | 4.95% |
| KMI | Kinder Morgan, Inc. | 4.76% |
| VZ | Verizon Communications Inc. | 4.70% |
| NEE | NextEra Energy, Inc. | 4.69% |
| PPL | PPL Corporation | 4.56% |
| DUK | Duke Energy Corporation | 4.56% |
ZWU Performance
Quickly compare ZWU to other investments focused on sector equities by fees, performance, yield, and other metrics to decide which ETF fits in your portfolio.
| Manager | ETF | Inception | MER | AUM | Holdings | Beta | P/E | Yield | Distributions | 1Y | 3Y | 5Y | 10Y | 15Y |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 | ZUT | 2010-01-19 | 0.61% | $421,000,000 | 15 | 0.58 | N/A | 4.71% | Monthly | -8.56% | -3.74% | 5.99% | 6.75% | N/A |
| ZWB | 2011-01-28 | 0.71% | $3,075,900,000 | 41 | 0.96 | N/A | 7.58% | Monthly | 0.07% | 5.17% | 5.67% | 7.02% | N/A |
| ZWC | 2017-02-03 | 0.72% | $1,648,980,000 | 97 | 0.90 | N/A | 7.50% | Monthly | 4.23% | 8.45% | 5.37% | N/A | N/A |
| ZWU | 2011-10-20 | 0.71% | $1,760,620,000 | 79 | 0.64 | N/A | 14.84% | Monthly | 3.88% | 4.64% | 3.42% | 3.82% | N/A |
ZWU vs ZUT
ZUT is a better performing, older, less expensive and less volatile ETF than ZWU more popular, more diversified and higher-yielding. Both funds have monthly distributions.
ZWU vs ZWC
ZWC is a better performing and more diversified ETF than ZWU older, less expensive, less volatile and higher-yielding. Both funds have monthly distributions.
ZWU vs ZWB
ZWB is a better performing, older and more popular ETF than ZWU more diversified, less volatile and higher-yielding. Both funds have monthly distributions and the same MER.
Conclusion
BMO Covered Call Utilities ETF (ZWU) is a short-term income investment to gain exposure to the mostly Canadian equities. ZWU is a convenient way to invest in utility stocks with a covered call strategy that has underperformed many index ETFs over a long time horizon.
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|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $12.99 CAD $9.99 USD |
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