BMO Europe High Dividend Covered Call ETF T.ZWP

The ETF seeks to provide exposure to the performance of a portfolio of dividend paying European companies to generate income and to provide long-term capital appreciation, while mitigating downside risk through the use of covered call options. The ETF will primarily invest in and hold the equity securities of dividend paying European companies. Securities will be selected using a rules based methodology that considers dividend growth, yield, and payout ratio. Securities will also be subject to a screening process to ensure sufficient liquidity. 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 at an exercise price or, if the option is cash settled, the right to a payment equal to the difference between the value of the security and the exercise price.

TSX:ZWP - Post by User

BMO Europe High Dividend Covered Call ETF

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Post by hoffbagon Jul 14, 2022 4:00pm

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Post# 34825112

Tough market

EU has to work through their energy problems. This may take a bit.
ZWP is also not hedged to the Canadian $ so it is down an additional 5% compared to ZWE over the last 3 months (ZWP has underperformed longer than that due to euro deprec).
Keep watching for an entry point in the future. The ETF has very solid holdings.
ZWU (utilities) has held up a bit better.

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