Quick Summary
| ETF | Focus | Distribution | Diversification |
|---|---|---|---|
| ZWB | Canadian banks + covered calls | Monthly; varies with market & options income | Sector‑concentrated (banks) |
| ZWC | Broader Canadian high‑dividend + covered calls | Monthly; varies | More diversified (multiple sectors) |
Note: Distributions vary month‑to‑month. Confirm details with the issuer before investing.
When ZWB Can Make Sense
- You want targeted exposure to Canadian banks (income from dividends + options).
- You’re comfortable with bank sector concentration.
- You prefer a simple “one‑sector income” sleeve in a broader portfolio.
When ZWC Can Make Sense
- You want broader Canadian equity exposure with a covered‑call overlay.
- You value diversified sector exposure over a single industry bet.
- You’re seeking monthly income with a wider mix of holdings.
Risk & Return Considerations
- Covered Calls: Generate income but can cap upside in sharp rallies.
- Volatility: Income may be higher in volatile markets; payouts can fluctuate.
- Taxes: Distributions may include eligible dividends, capital gains, or ROC. Tax outcome varies by account type.