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 netgenxon Jan 14, 2015 4:12pm

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Post# 23319926

RE:bank stocks dropping.......

The short answer? Yes, the price of oil is the main reason in my opinion. In addition to the exposure the banks have to oil company debt which is pretty substantial, the knock on effects of a drop in things like property values in Alberta & Sask. and loan losses caused by lay-offs will cause concern among shareholders.

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