BMO Covered Call Canadian Banks ETF T.ZWB

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

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

Bullboard Posts

Comment by Michael9144on Oct 04, 2011 3:24pm

281 Views

Post# 19118041

RE: Safety of the Distibutions

ZWB is XFN but it uses covered calls to enhance the income, which is perfect in a sideways market.You lose if you are in a Bull Market, ZWB limits your upside but protects against some down side.Most people do not understand options, but in the market we are in, Covered Calls provide some insurance and extra income.

Bullboard Posts

Debt-free cannabis company set for next stage of growth