A side-by-side comparison of BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE) and iShares MSCI Europe IMI Index ETF (XEU) to help Canadian investors make an informed decision.
CIBC Investor's Edge
Get 200 free trades when you open an eligible CIBC Investor's Edge account with promo code EDGE2026.
- ✓200 free stock & ETF trades
- ✓Unlimited commission-free trades on 180+ select ETFs
- ✓Offer ends September 30, 2026
1-Year Performance
Normalised to 100 at the start — shows relative return over the trailing 12 months.
Head-to-Head Comparison
| Metric | ZWE | XEU |
|---|---|---|
| YTD Return | +1.03% | +7.37%✓ |
| 1-Day Change | -0.69%✓ | -0.85% |
| 1-Week Change | -1.83%✓ | -2.61% |
| 1-Month Change | -0.42%✓ | -0.66% |
| Current Price | $21.50 | $40.63 |
| AUM | $765M✓ | $681M |
| MER (Expense Ratio) | 0.65% | 0%✓ |
| Dividend Yield | 6.70%✓ | 2.65% |
| Distribution Frequency | Monthly | Half-yearly |
| Inception Date | 2015-09-02 | 2014-04-15 |
| Holdings Count | 1 | 10 |
| MorningStar Rating | ★★★ | ★★★★ |
| Category | European Equity | European Equity |
| Beta | 0.65 | 1.01 |
| 52-Week High | $21.96 | $41.83 |
| 52-Week Low | $18.36 | $32.79 |
| 50-Day MA | $21.51 | $40.32 |
| 200-Day MA | $21.20 | $38.51 |
✓ marks the better value for return/yield/AUM metrics. Lower ✓ for MER.
Annualised Returns
| Period | ZWE | XEU |
|---|---|---|
| YTD | +1.03% | +7.37%✓ |
| 1 Year | +13.53% | +20.28%✓ |
| 3 Year | +10.59% | +18.41%✓ |
| 5 Year | +9.22% | +11.13%✓ |
| 10 Year | +8.89% | +10.58%✓ |
| 1Y Volatility | 9.07% | 11.49% |
| Sharpe Ratio (3Y) | 0.81 | 1.28 |
Past performance is not a guarantee of future results.
Top 10 Holdings
| 1 | ZWP | BMO Europe High Dividend Covered Call ETF | 99.98% |
| 1 | ASML | ASML Holding N.V. | 4.81% |
| 2 | HSBA | HSBC Holdings PLC | 2.05% |
| 3 | ROP | Roche Holding AG | 1.83% |
| 4 | NOVN | Novartis AG | 1.81% |
| 5 | AZN | AstraZeneca PLC | 1.79% |
| 6 | NESN | Nestle S.A. | 1.67% |
| 7 | SIE | Siemens Aktiengesellschaft | 1.51% |
| 8 | SHEL | Shell plc | 1.38% |
| 9 | SAN | Banco Santander S.A. | 1.25% |
| 10 | IEUR | iShares Core MSCI Europe ETF | 1.18% |
Sector Weights
| Sector | ZWE | XEU |
|---|---|---|
| Basic Materials | 6.87% | 5.69% |
| Communication Services | 6.53% | 3.89% |
| Consumer Cyclicals | 3.46% | 7.10% |
| Consumer Defensive | 8.31% | 7.99% |
| Energy | 9.72% | 5.15% |
| Financial Services | 24.27% | 22.26% |
| Healthcare | 12.58% | 12.60% |
| Industrials | 13.21% | 19.68% |
| Real Estate | 0.00% | 1.51% |
| Technology | 5.26% | 9.64% |
| Utilities | 9.78% | 4.50% |
About ZWE
The BMO Europe High Dividend Covered Call Hedged to CAD ETF has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors. The Fund screens for securities for dividend growth, sustainability, and option liquidity. The Fund also dynamically writes covered call options. The call options are written out of the money and selected based on analyzing the option's available pre…
About XEU
iShares MSCI Europe IMI Index ETF (XEU.TO) is a Canadian-listed ETF traded on the Toronto Stock Exchange. More detailed information will be available soon.
Which ETF is Right for You?
Both ZWE and XEU 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, ZWE 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 ZWE and XEU?
ZWE (BMO Europe High Dividend Covered Call Hedged to CAD ETF) and XEU (iShares MSCI Europe IMI Index ETF) are both Canadian-listed ETFs. Key differences include their AUM ($765M vs $681M), dividend yield (6.70% vs 2.65%), and year-to-date performance (+1.03% vs +7.37%).
Is ZWE better than XEU?
There is no single "better" ETF — it depends on your investment goals. If you prioritise dividends, compare both yields and choose based on your income needs. Always review the fund's prospectus and consider your tax situation.
Can I buy ZWE and XEU on Wealthsimple?
Most Canadian-listed ETFs are available on Wealthsimple Trade commission-free. Both ZWE and XEU should be accessible. Check Wealthsimple's supported tickers list to confirm availability.
7 stocks to buy and hold forever
Complement your ETF portfolio with these proven long-term individual stocks.
Get the FREE Report