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BMO Covered Call Technology ETF T.ZWT

The ETF seeks to provide exposure to the performance of a portfolio of technology and technology related 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 technology companies and technology related companies. The securities will be selected using a rules-based methodology that considers quality, growth potential and yield..


TSX:ZWT - Post by User

Post by Moogulon Mar 24, 2024 5:26pm
51 Views
Post# 35949779

Amazing

Amazing

This covered call tech etf has managed to outperform most tech etf I have looked at-over a 2 year period STRICTLY on SP alone before considering they pay a relatively healthy yield. This is amazing considering a covered call etf is supposed to have less upside or capped by the occasional call option that gets exercised...

This tells me that their strategy is working well and has me thinking that option premiums are at such nose bleed lvls in the tech sector that it's potentially not just a yield vs capital gain trade off. But potentially a valid and superior total return strategy. Anyways do your own due diligence I might not know what I'm talking about haha.

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