A side-by-side comparison of BMO Canadian High Dividend Covered Call (ZWC) and iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY) to help Canadian investors make an informed decision.
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1-Year Performance
Normalised to 100 at the start — shows relative return over the trailing 12 months.
Head-to-Head Comparison
| Metric | ZWC | XHY |
|---|---|---|
| YTD Return | +9.25%✓ | -1.86% |
| 1-Day Change | +0.27%✓ | 0.00% |
| 1-Week Change | -0.62% | -0.37%✓ |
| 1-Month Change | -0.13%✓ | -0.49% |
| Current Price | $22.56 | $16.35 |
| AUM | $2.35B✓ | $1.11B |
| MER (Expense Ratio) | 0.65% | 0%✓ |
| Dividend Yield | 5.66% | 6.12%✓ |
| Distribution Frequency | Monthly | Monthly |
| Inception Date | 2017-02-03 | 2010-01-21 |
| Holdings Count | 10 | 10 |
| MorningStar Rating | ★★ | ★★★ |
| Category | Canadian Dividend and Income Equity | High Yield Fixed Income |
| Beta | 0.79 | 0.25 |
| 52-Week High | $22.73 | $16.50 |
| 52-Week Low | $17.33 | $15.74 |
| 50-Day MA | $22.13 | $16.42 |
| 200-Day MA | $20.97 | $16.61 |
✓ marks the better value for return/yield/AUM metrics. Lower ✓ for MER.
Annualised Returns
| Period | ZWC | XHY |
|---|---|---|
| YTD | +9.25%✓ | -1.86% |
| 1 Year | +29.34%✓ | +4.29% |
| 3 Year | +17.94%✓ | +7.35% |
| 5 Year | +11.38%✓ | +2.74% |
| 10 Year | — | +3.97% |
| 1Y Volatility | 7.76% | 2.56% |
| Sharpe Ratio (3Y) | 1.45 | 0.86 |
Past performance is not a guarantee of future results.
Top 10 Holdings
| 1 | RY | Royal Bank of Canada | 7.43% |
| 2 | TD | Toronto Dominion Bank | 6.03% |
| 3 | CM | Canadian Imperial Bank Of Commerce | 6.02% |
| 4 | CNQ | Canadian Natural Resources Ltd | 5.71% |
| 5 | BNS | Bank of Nova Scotia | 5.26% |
| 6 | ENB | Enbridge Inc | 5.22% |
| 7 | SU | Suncor Energy Inc | 4.77% |
| 8 | TRP | TC Energy Corp | 4.30% |
| 9 | BMO | Bank of Montreal | 3.75% |
| 10 | FTS | Fortis Inc | 3.28% |
| 1 | T-Mobile US, Inc. 7.88% | 0.41% | |
| 2 | TransDigm, Inc. 6.25% | 0.39% | |
| 3 | Ford Motor Company 8.5% | 0.34% | |
| 4 | Centene Corporation 4.63% | 0.33% | |
| 5 | AAdvantage Loyalty IP Ltd/ American Airlines Inc 5.5% | 0.32% | |
| 6 | Ford Motor Company 9% | 0.32% | |
| 7 | Caesars Entertainment Inc New 6.25% | 0.30% | |
| 8 | Teva Pharmaceutical Finance Netherlands III B.V. 3.15% | 0.30% | |
| 9 | AAdvantage Loyalty IP Ltd/ American Airlines Inc 5.75% | 0.28% | |
| 10 | American Airlines, Inc. 11.75% | 0.28% |
Sector Weights
| Sector | ZWC | XHY |
|---|---|---|
| Basic Materials | 12.86% | 0.00% |
| Communication Services | 6.37% | 0.00% |
| Consumer Cyclicals | 3.97% | 0.00% |
| Consumer Defensive | 1.42% | 0.00% |
| Energy | 23.10% | 0.00% |
| Financial Services | 38.82% | 0.00% |
| Healthcare | 0.00% | 0.00% |
| Industrials | 4.55% | 0.00% |
| Real Estate | 0.00% | 0.00% |
| Technology | 0.00% | 0.00% |
| Utilities | 8.89% | 0.00% |
About ZWC
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About XHY
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Which ETF is Right for You?
Both ZWC and XHY are listed on Canadian exchanges and accessible through most Canadian brokerages including Questrade, Wealthsimple Trade, TD Direct, and Interactive Brokers.
Based on the available data, ZWC scores higher across our tracked metrics including YTD performance, dividend yield, and AUM — though both ETFs warrant individual research before investing.
- Consider your account type (TFSA, RRSP, non-registered) as it can affect dividend taxation.
- Compare management expense ratios (MER) directly on each provider's website.
- Look at average daily trading volume to assess liquidity.
- Review the fund's underlying index and holdings to ensure the exposure matches your goals.
This is not financial advice. Always do your own research or consult a licensed financial advisor before investing.
Frequently Asked Questions
What is the difference between ZWC and XHY?
ZWC (BMO Canadian High Dividend Covered Call) and XHY (iShares U.S. High Yield Bond Index ETF (CAD-Hedged)) are both Canadian-listed ETFs. Key differences include their AUM ($2.35B vs $1.11B), dividend yield (5.66% vs 6.12%), and year-to-date performance (+9.25% vs -1.86%).
Is ZWC better than XHY?
There is no single "better" ETF — it depends on your investment goals. If you prioritise recent performance, ZWC has outperformed year-to-date. Always review the fund's prospectus and consider your tax situation.
Can I buy ZWC and XHY on Wealthsimple?
Most Canadian-listed ETFs are available on Wealthsimple Trade commission-free. Both ZWC and XHY should be accessible. Check Wealthsimple's supported tickers list to confirm availability.
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