BMO Covered Call Utilities ETF T.ZWU

Alternate Symbol(s): BMMVF

The ETF seeks to provide exposure to the performance of a portfolio of utilities companies to generate income and to provide long-term capital appreciation. To achieve investment objective the ETF will primarily invest in and hold the equity securities of Canadian companies widely recognized as utilities companies, which may also include telecommunication and pipeline companies, and use derivative instruments to hedge U.S. dollar securities back to the Canadian dollar. 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:ZWU - Post by User

BMO Covered Call Utilities ETF > Calls exercised?

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Comment by Puma1backon Dec 29, 2023 8:36am

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Post# 35803710

RE:RE:RE:Calls exercised?

it was the 13th - excerpt from the Globe:

CIBC World Markets is the latest research team to release their 2024 outlook,

“Particularly impressive this past year was the ability of businesses and equities to manage through the difficult inflation and interest rate environment. S&P 500 earnings in 2023 were essentially flat with 2022. Canadian earnings were less resilient, falling 8% per cent with banks and energy companies shouldering the blame… we believe a more defensive equity stance is appropriate, with a focus on companies with either low-risk earnings streams or higher leverage to the U.S. Our recommended Canadian sectors are Communications, Utilities, and Industrials, with the latter likely to lead more meaningfully as the U.S. economy regains steam later in 2024… Canada with its over-leveraged consumers will see the gradual impact of higher mortgage repricing and struggle to keep pace with U.S. equity price returns… "

Puma1back wrote:
Anyway, this ETF got put in the Top 10 ETF's for 2024 in the Globe.

Puma1back wrote:
i thought they bought more out of money calls anyway, i suspect the call portfolio was not unduly loaded at the lows of October.

AndrewWiggin wrote: Looks like a lot of calls will be exercised. Does anyone know if ZWU and other covered call etf's immediately repurchased the shares that had the calls exercised?