ZWC - BMO Canadian High Dividend Covered Call ETF
Portfolio Strategy
The BMO Canadian High Dividend Covered Call ETF (ZWC) 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 utilizes a rules based methodology that considers dividend growth rate, yield, and payout ratio. Securities will also be subject to a liquidity screen process. The ETF also dynamically writes covered call options. The call options are written out of the money and selected based on analyzing the option’s available premium. The option premium provides limited downside protection.
Benefits
- Designed for investors looking for higher income from equity portfolios
- Invested in a diversified portfolio of high dividend Canadian companies
- Call option writing reduces volatility
- Professionally managed by BMO Global Asset Management
