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  5. ZWU: Hi, With CDN interest rates maybe coming down I'm wondering if a switch from a covered call utility ETF (ZWU) to an equal weight ETF like ZUT makes sense? [BMO Covered Call Utilities ETF]
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Q: Hi, With CDN interest rates maybe coming down I'm wondering if a switch from a covered call utility ETF (ZWU) to an equal weight ETF like ZUT makes sense? ZUT though has a fairly high MER, so is there a better option, or maybe better to just buy individual stocks. Thanks.
Asked by Jeff on May 16, 2024
5i Research Answer:

If an investor believes lower rates should help the utilties sector (and they should) then one could possibly see more capital gains from a 'straight' ETF rather than a covered call fund. We would prefer the equal weight approach if ZUT vs others and would be fine with this switch if growth is more of a focus. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.