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BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (ZWA)
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Hamilton Enhanced U.S. Covered Call ETF (HYLD)
Q: I own ZWA.TO and it has drastically underperformed anything close to the benchmark dow. IYY, a Dow proxy listed in USD, is up 34% in past year while ZWA is up less than 10% on a price basis. Being a covered call ETF, yielding less than 6%, does not explain this huge %-point performance difference. Nor the fact that it is CAD-hedged. How can it be so poorly managed? What is going on with these BMO etfs? Can you recommend a broad CAD denominated global equity covered call ETF so I can replace ZWA?
5i Research Answer:
It is a big performance gap. But we would note the Canadian dollar declined nearly 9% last year...