BMO Europe High Div CC CAD Hedge ETF: moderate growth in the long term

ZWE Analysis: Is this ETF worth investing in?

BMO Europe High Div CC CAD Hedge ETF (ZWE) experienced a slight decline during Friday's trading session, opening at $20.79 and closing at $20.80. Throughout the day, the share price fluctuated between a low of $20.75 and a high of $20.85, eventually declining 0.05% from the previous day's closing price of $20.81.

Meanwhile in North America, the major indices also turned negative, with the TSX Composite closing down 0.64% at 21829.85, the S&P 500 down 0.29% at 5150.48, the Dow Jones Industrial Average down 0.35% at 38905.66, and the Nasdaq Composite down 0.30% at 16128.53.

BMO Europe High Div CC CAD Hedge ETF, listed on Toronto Stock Exchange (TSX) under ticker ZWE, traded a total of 7,512 shares on the day with 33 total trades. On average, the ETF has traded 14,018 shares in the last five days and 15,951 shares for the entire year.

Looking at performance over the past 52 weeks, ZWE.TO had a high of $20.99 on March 13, 2024 and a low of $18.57 on October 27, 2023. Additionally, the ETF's shares are up 10.11% over the past 12 months and 4.68% so far this year.

After Friday's trading session, BMO Europe High Div CC CAD Hedge ETF boasts a market capitalization of $616.34 million with 29,618 shares outstanding.

The BMO Europe High Div CC CAD Hedge ETF, which is headquartered in Net, is designed to allocate shares in a dividend-oriented portfolio while earning premiums on call options. The underlying portfolio is yield-weighted and diversified across sectors with a focus on securities characterized by dividend growth, stability and options liquidity. In addition, the ETF dynamically writes covered call options, providing limited downside protection, and hedges currency exposure in the Canadian dollar.

In conclusion, despite a slight decline in the share price of the BMO Europe High Div CC CAD Hedge ETF on Friday, the overall performance of the ETF remains relatively stable. With its dividend-oriented portfolio focus and call option premium gains, it continues to attract investors looking for diversified investment opportunities. As always, investors are advised to conduct thorough research and consider their financial goals before making any investment decisions.


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