Q: What are your thoughts on this ETF for income in a non-registered account? The security seems relatively young, if you have an alternative you are more comfortable, with, please suggest.
5i Research Answer:
ZWQT is a fund of funds that holds a basket of BMO covered call ETFs in a variety of industry/sector focuses. We are comfortable with the idea of it but we are concerned about the liquidity of it as the ETF only has $11.77M in net assets. The underlying holdings are however much more diversified. Alternatives include HDIV or HYLD, however both these use leverage, which adds some risk.