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
| Distribution Period | Ex-Div Date | Pay Date | Cash Distribution Per Unit |
|---|---|---|---|
| Jan, 2022 | Jan 27, 2022 | Feb 02, 2022 | 0.100000 |
| Feb, 2022 | Feb 24, 2022 | Mar 02, 2022 | 0.100000 |
| Mar, 2022 | Mar 29, 2022 | Apr 04, 2022 | 0.100000 |
| Apr, 2022 | Apr 27, 2022 | May 03, 2022 | 0.100000 |
| May, 2022 | May 27, 2022 | Jun 03, 2022 | 0.100000 |
| Jun, 2022 | Jun 28, 2022 | Jul 05, 2022 | 0.100000 |
| Jul, 2022 | Jul 27, 2022 | Aug 03, 2022 | 0.100000 |
| Aug, 2022 | Aug 29, 2022 | Sep 02, 2022 | 0.100000 |
| Sep, 2022 | Sep 28, 2022 | Oct 05, 2022 | 0.100000 |
| Oct, 2022 | Oct 27, 2022 | Nov 02, 2022 | – |
| Nov, 2022 | Nov 28, 2022 | Dec 02, 2022 | – |
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% |