2 BMO ETFs On Investors’ Radar: ZSP & ZWK

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2 BMO ETFs On Investors’ Radar: ZSP & ZWK

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 2 BMO ETFs On Investors’ Radar: ZSP & ZWK

Summary

  • BMO US Banks ETF has surpassed the S&P US Banks Index month-to-date (MTD) performance.
  • The bank fund delivers a monthly dividend of C$ 0.18 per ETF unit, and its dividend yield is almost 8 per cent.
  • The S&P ETF’s scrips have advanced by 2.7 per cent MTD, matching the S&P 500 Index’s performance.

Bank of Montreal (BMO) Global Asset Management holds many diversified portfolios, including exchange traded funds (ETFs). BMO Covered Call US Banks ETF (TSX: ZWK) tracks the US financial segment to provide long-term growth with lower risk via its covered call options. While the BMO S&P 500 Index ETF (TSX: ZSP) closely follows S&P 500 ETF Index.

Let us delve into these two Toronto Stock Exchange (TSX)-listed Bank of Montreal ETFs:

 

BMO Covered Call US Banks ETF (TSX: ZWK)

Current Stock: C$ 26.87

 

This bank ETF delivers a monthly dividend of C$ 0.18 per unit with a current dividend yield of 7.964 per cent. The BMO fund has 3.9 million listed units on the TSX.

The S&P U.S. Banks Index has yielded 5.53 per cent month-to-date (MTD). The BMO ETF has outperformed the US Bank Index with 7.3 per cent MTD growth. The benchmark index has declined by almost 9 per cent in one year. In contrast, the fund is down 4.6 per cent in the same period.

The bank ETF is currently holding 13.42 per cent return on equity.

It has a price-to-earnings ratio of 11.40, price-to-book ratio of 0.88 and returns on assets 1.08 per cent, as per TMX data.

Image Source: Kalkine Group @2021

BMO S&P 500 Index ETF (TSX: ZSP)

Current Stock Price: C$ 53.69

This BMO ETF stock has a quarterly dividend of C$ 0.22 per unit, and its current dividend yield stands at 1.416 per cent. The fund has a market capitalization of approx. C$ 9.9 billion. The ETF unit has a 26.85 per cent return on equity.

The BMO ETF has gained 2.7 per cent Month-To-Date (MTD), similar to the S&P 500 index that also posted 2.7 per cent growth in 2021 so far. In the last one year, both the fund and the benchmark index have returned over 15 per cent.

The fund is offering a 9.08 per cent return on assets, price-to-earnings ratio of 25.10 and price-to-cashflow ratio of 14.50.

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