BMO Covered Call Canadian Banks ETF BMDLF

Primary Symbol: T.ZWB Alternate Symbol(s): T.ZWB.U

The ETF seeks to provide exposure to the performance of a portfolio of Canadian banks to generate income and to provide long-term capital appreciation while mitigating downside risk through the use of covered call options. To achieve investment objective the ETF will primarily invest in and hold the securities of Canadian banks, ETFs, or a combination of these. Depending on market volatility and other factors, the ETF will write covered call options on these securities. Under such call options, the ETF will sell to the buyer of the option, for a premium, either a right to buy the security from the ETF at an exercise price or, if the option is cash settled, the right to a payment from the ETF equal to the difference between the value of the security and the exercise price.

TSX:ZWB - Post by User

BMO Covered Call Canadian Banks ETF > Update

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Comment by EnoughBullon Feb 16, 2023 7:41pm

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Post# 35291143

RE:RE:RE:Update

ZWB monthly paid dividend $0.11 per month. Last Dividend was $0.12 Total annually $1.32 or more if increased, Which gives you approx. 7% annually.
if you invest $20,000 and get approx. 1000 shares you`ll end up with profit of ~$1440 in one year plus let hope increase in share price. Thats twice as much as GIC offers around 3-4% annually
I hope this helps. Cheers

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