BMO Covered Call Canadian Banks ETF T.ZWB

Alternate Symbol(s): T.ZWB.U | BMDLF

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

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Comment by Banner403on Apr 20, 2011 7:17pm

676 Views

Post# 18465114

RE: RE: new cc etfs

I have a neutral to negative market outlook in the next 6 months or so. Should be good conditions to maintain these rates. If a bull market takes over, the distributions will obviously decrease, but the equity value should go up. Great way to participate in the market instead of sitting on the sidelines with cash. Most investment grade bonds fail to even cover inflation rates at this point, and most regular equities are at a risk with the tsx comp at or over 14k. I have full positions in zwb, hep and hex and plan to double my hex position this week before div ex date (April 27).

https://www.horizonsetfs.com/Pdf/PressReleases/20110419_Distributions.pdf

LS

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