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  5. ZPAY: Please explain the differences with these etf's. [BMO Premium Yield ETF]
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Q: Please explain the differences with these etf's.
Do you have a preference.

Thank you
Asked by JACK on December 21, 2024
5i Research Answer:

ZPH holds ZPW, however, ZPH is hedged to CAD while ZPW is directly listed in CAD. ZPW writes put options on a portfolio of large cap US stocks to generate a premium yield. We typically prefer unhedged ETF, so we like ZPW more here. 

ZPAY also owns a portfolio of large cap US stocks but writes both puts and call on the portfolio to generate enhanced income. 

The fee is essentially the same across the three funds at 0.72% but ZPAY has a much higher asset base. We like ZPAY the best here.