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BMO Covered Call Utilities ETF (ZWU)
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iShares S&P/TSX Capped Utilities Index ETF (XUT)
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Hydro One Limited (H)
Q: Trying to consolidate utility positions in my RIF. Currently I own small positions in ZWU, H and XUT. Which one would you suggest keeping?
Thank you
Thank you
5i Research Answer:
There is certainly some overlap in these three positions, with both ZWU and XUT having exposure to H. ZWU holds a 4.5% position in H and XUT holds an 11% position in H. The answer does depends if one wants broad sector exposure or company exposure. Between ZWU and XUT, we would say ZWU for income, XUT for growth. However, looking at previous performance both have performed quite closely with ZWU slightly outperforming. ZWU also has a much larger net asset base so we would give it the slight edge if we had to pick.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWU.