ZWE - BMO Europe High Dividend Covered Call Hedged to CAD ETF
Portfolio Strategy
The BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE) 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, payout ratio and 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 premium. The option premium provides limited downside protection. The foreign currency exposure is hedged back to the Canadian dollar. In addition, as ZWE is a fund of fund, the management fees charged are reduced by those accrued in the underlying funds.
Benefits
- Designed for investors looking for higher income from equity portfolios
- Invested in a diversified portfolio of high dividend European companies
- Call option writing reduces volatility
- Currency is hedged back to Canadian dollars
- Professionally managed by BMO Global Asset Management
