Investment objective
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 selection methodology uses 4 factors: – Liquidity; – Dividend growth rate; – Yield and payout ratio.
What’s a covered call ETF?
What’s unique about this ETF is that it uses covered calls to protect against downside risk. This being said, the covered call strategy provides limited downside protection. Also, when you write a covered call, you give up some of the stock’s potential gains. These ETFs will tend to have a higher yield and a lower performance.
ZWC is an excellent option for conservative investors looking for a steady income and low volatility. It’s tax-efficient because the dividends are all coming from Canadian companies. The financial sector and Energy represents 53% of the total overall sector allocation.
Please consult our recent post comparing ZWC with other popular High Dividend ETFs in Canada.
Historical performance
| ETF | Div Yld | |
|---|---|---|
| ZWC | 6.80% |
Historical performance updated daily
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ZWC MER
| ETF | MER* % |
| ZWC – BMO CDN High Div Covered Call | 0.72 |
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ZWC Stock Profile
Updated daily
ZWC Stock 52 weeks high and low
Updated daily
ZWC Dividend history
| Amount | Dividend Type | Ex-Div Date | Record Date | Pay Date | Declare Date |
|---|---|---|---|---|---|
| 0.1000 | Regular | 6/27/2024 | 6/27/2024 | 7/3/2024 | 6/20/2024 |
| 0.1000 | Regular | 5/30/2024 | 5/30/2024 | 6/4/2024 | 5/23/2024 |
| 0.1000 | Regular | 4/26/2024 | 4/29/2024 | 5/2/2024 | 4/19/2024 |
| 0.1000 | Regular | 3/27/2024 | 3/28/2024 | 4/2/2024 | 3/20/2024 |
ZWC ETF Holdings
| Company Name | Allocation |
|---|---|
| Canadian National Railway Co | 5.4% |
| BCE Inc | 5.2% |
| TELUS Corp | 5.1% |
| Enbridge Inc | 5.0% |
| Royal Bank of Canada | 5.0% |
| Canadian Imperial Bank of Commerce | 4.9% |
| Bank of Nova Scotia | 4.7% |
| The Toronto-Dominion Bank | 4.6% |
| Manulife Financial Corp | 4.3% |
Similar ETFs
| Name | Div yield | MER |
| High Dividend Yield (Diversified) | ||
| ZWC – BMO CDN High Div Covered Call | 6.63 | 0.72 |
| HDIV -Hamilton Enhanced Multi-Sector Covered Call | 9.58 | na |
| HDIF -Harvest Diversified Monthly Income ETF | 10.05 | na |
| ZWH – BMO US High Dividend Covered Call | 5.58 | 0.71 |
| ZWS – BMO US High Dividend Covered Call Hedged to CAD | 5.63 | 0.71 |
| High Dividend Yield (Europe) | ||
| ZWE – BMO Europe High Div CC CAD Hedge | 6.37 | 0.71 |
| ZWP – BMO Europe High Div Cov Call | 6.48 | 0.71 |
| High Dividend Yield (Sector Focused) | ||
| LIFE – Evolve Global Healthcare Enhance Yld | 6.42 | 0.68 |
| CALL – Evolve US Banks Enhanced Yield | 6.48 | 0.69 |
| LIFE-B – Evolve Global Healthcare Enhance Yld Unheg | 5.88 | 0.68 |
| FIE – Ishares CDN Fin Mthly Income | 5.85 | 0.89 |
| HPF – Harvest Energy Leaders Plus Income | 4.43 | 1.71 |