The BMO US High Dividend Covered Call ETF (ZWH) 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 implied volatility. The option premium provides limited downside protection. The underlying portfolio is rebalanced to maintain broad sector diversification and options are rolled forward upon expiry. In addition, ZWH may hold other underlying ETFs, the management fees charged are reduced by management fees paid on the underlying ETFs, thereby avoiding duplication of the management fees.
- Designed for investors looking for higher income from equity portfolios
- Invested in a diversified portfolio of high dividend U.S. companies
- Call option writing reduces volatility
- Further diversification from U.S. currency
- Professionally managed by BMO Global Asset Management