The BMO Europe High Dividend Covered Call ETF (ZWE.TO) closed at $20.76 on Tuesday, marking its fourth consecutive day of gains and a 2.32% rise over the past two weeks. Despite positive technical signals, analysts caution that the ETF is overbought, suggesting a short-term correction may be imminent.

Mackenzie Investments and BMO Asset Management have launched several new fixed-income ETFs, focusing on AAA-rated CLOs and target-maturity bond funds. These offerings aim to provide predictable income and risk mitigation as investors seek stability during ongoing market fluctuations and uncertainty about interest rate environments.

BMO’s latest guided portfolio strategy emphasizes defensive positioning, favoring low-volatility Canadian equities and short-term bonds. The approach prioritizes income, liquidity, and flexibility, reflecting concerns about economic headwinds and rising risks. The model signals a preference for steady cash flow over aggressive growth in today’s uncertain climate.