ZWU - BMO Covered Call Utilities ETF

Portfolio Strategy

The BMO Covered Call Utilities ETF (ZWU) has been designed to provide exposure to an equal weight portfolio of utilities, telecoms and pipeline companies, while earning call option premiums. The call options are written out of the money, selected based on the option’s implied volatility, and are written in proportion to the securities weight. The option premium provides limited downside protection. The underlying portfolio is rebalanced in June and reconstituted in December. Options are rolled forward upon expiry. In addition, as ZWU 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 utilities, including telecommunications and pipeline companies
  • Call option writing reduces volatility
  • Professionally managed by BMO Global Asset Management

ZWU - BMO Covered Call Utilities ETF

Latest insights

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