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BMO Covered Call Utilities ETF (ZWU)
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BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE)
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Canoe EIT Income Fund (EIT.UN)
Thinking of eit.un, zwu, zwe . Harvest and Horizon have higher yields but I am concerned about sustainability. Your thought please.
Thank you for your good works.
EIT.UN is a long established closed end fund, with a 5-year annualized return of 15.33%. It has done well by largely being in the right sectors at the right time. It has never missed a dividend though the rate was higher back in the early 2000s. Much of the distribution is taxed as return of capital. We would be OK with it, it has overcome our prior objections with performance. ZWE owns 58 securities so its dividend should be fine. It may vary, and its performance is going to depend on European equities. They are cheap, but economically it may require some patience. We would not have big concerns here. ZWU should be fine. Utiltiies should do better with lower interest rates. As a covered call fund it can generate income in all types of markets. Not risk-free, but a solid sector with good cash flow and decent for enhanced income.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.