zwc etf

ZWC – Full review of BMO High Dividend ETF Covered Call

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

ETFDiv
Yld
ZWC6.80%

Historical performance updated daily

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ZWC MER

ETFMER*
%
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, 2022Jan 27, 2022Feb 02, 20220.100000
Feb, 2022Feb 24, 2022Mar 02, 20220.100000
Mar, 2022Mar 29, 2022Apr 04, 20220.100000
Apr, 2022Apr 27, 2022May 03, 20220.100000
May, 2022May 27, 2022Jun 03, 20220.100000
Jun, 2022Jun 28, 2022Jul 05, 20220.100000
Jul, 2022Jul 27, 2022Aug 03, 20220.100000
Aug, 2022Aug 29, 2022Sep 02, 20220.100000
Sep, 2022Sep 28, 2022Oct 05, 20220.100000
Oct, 2022Oct 27, 2022Nov 02, 2022
Nov, 2022Nov 28, 2022Dec 02, 2022
Please check issuer’s website for up-to-date data

ZWC ETF Holdings

Company NameAllocation
Canadian National Railway Co5.4%
BCE Inc5.2%
TELUS Corp5.1%
Enbridge Inc5.0%
Royal Bank of Canada5.0%
Canadian Imperial Bank of Commerce4.9%
Bank of Nova Scotia4.7%
The Toronto-Dominion Bank4.6%
Manulife Financial Corp4.3%
Please consult issuers’ website for up-to-date data