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Experts believe that ZUT-T has outperformed ZWU with a return of 38% over 5 years, compared to ZWU's 13%. They also highlight that ZUT-T is an interest rate sensitive product that can be volatile, performing well if interest rates fall. However, they do not recommend it as a bond substitute. The consensus is that if one does not need the income, it's better to look at the underlying securities. The next few months are seen as a good time to add to this position, with a potential for strong performance if interest rates fall due to an economic hard landing.
Return of 38% over 5 years, whereas ZWU has a total return of only 13%. With covered calls like ZWU, you miss out on upside over time. The underlying securities of a covered call strategy often perform a bit better. So if you don't need the income, start looking at the underlying securities.
Interest rate sensitive product that can be volatile. If interest rates fall, this product will perform well. Would not recommend as a bond substitute. Next few months are a good time to add to this position. If/when interest rates fall (economic hard landing) stock will do very well.
Utility volatility impacting share price with rising interest rates.
Trying to be conservative, but will hold shares.
Duration negatively impacting duration of cash flows.
Utilities are good for yield seekers. Could look at ZWU with broader based with utilities + other dividend players as well as some US exposure. Overall, good for income.
An ETF for utilities. A great defensive sector with amazing performance lately. XUT-T is good, but 60% is in the top 4 holdings (inculding Fortis and Algonquin); 4% yield and 55 basis point cost. ZUT-T is more diversified and equal-weight. ZWU is also equal weight but does covered calls to create extra income, which sells future income for gains today; yields 6%. Given the strong performance of utilities in the past year, covered calls have lagged.
Prefers the BMO Covered Call Utilities (ZWU-T), which has US utilities as well, giving better diversification. The problem with utilities is that they are very, very interest rate sensitive.
He likes the utility space, but about 2 months ago he reduced his exposure. Utilities are very good instruments for providing yield, and there is a strong demand. Some have had a real run, but he doesn’t believe this basket as a whole represents the growth opportunities that the multiple is trading at. He’d rather Buy individual stocks. His favourite is Emera (EMA-T).
If your view is that utilities is going to be a good place to be in Canada for the foreseeable future, and you want to diversify away from energy and financials, it is a good holding. Be aware that some yields may not be sustainable for the long-term. Dividend yield of 4.1%.
BMO Equal Weight Utilities Index ETF is a Canadian stock, trading under the symbol ZUT-T on the Toronto Stock Exchange (ZUT-CT). It is usually referred to as TSX:ZUT or ZUT-T
In the last year, 2 stock analysts published opinions about ZUT-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BMO Equal Weight Utilities Index ETF.
BMO Equal Weight Utilities Index ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for BMO Equal Weight Utilities Index ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered BMO Equal Weight Utilities Index ETF In the last year. It is a trending stock that is worth watching.
On 2024-04-23, BMO Equal Weight Utilities Index ETF (ZUT-T) stock closed at a price of $18.61.