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 byloselhi1on Oct 05, 2011 1:12pm

393 Views

Post# 19121708

RE: Safety of the Distibutions

The saftey of the distributions will depend on waht the Canadian Banks do, and the fund managers skill of selling options to earn the aditional income to sustain the current
.12/ month dist.

The distribution was
.129 on inception last Feb 11 and was cut to .0127 in April. August saw the cut to .12. The unit price cratered on both drops. Collateral from the BMO/ZWB site:
https://www.etfs.bmo.com/bmo-etfs/distribution?fundId=83031

BMO Covered Call Canadian Banks ETF

Distribution History

Each BMO ETF will distribute net taxable income to investors at least once a year. A BMO ETF will have taxable income if the income generated (for example interest, dividend, capital gains, etc.) by the securities within the BMO ETF is greater than the expenses of the BMO ETF. The distributions will either be paid in cash or reinvested in the BMO ETF at the discretion of the manager. The future distribution dates for BMO ETFs may change at any time and whether or not a distribution occurs will depend on the tax characteristics of the underlying investments.

The following table lists historical distributions and includes information about the frequency dollar value and tax composition of the distribution. The tax composition of the BMO ETF distribution will be determined on a yearly basis and will only be available after the BMO ETFs tax year. This information will be reported in an official tax receipt provided to investors by their broker.

Choose distribution year:

Distribution Period 1	Ex-Dividend Date	Record Date	Pay Date	Cash Distribution Per Unit	Reinvested Distribution Per Unit 2	Total Distribution Per Unit
Feb, 2011	Feb 23, 2011	Feb 25, 2011	Mar 07, 2011	0.129000	0.000000	0.129000
Mar, 2011	Mar 28, 2011	Mar 30, 2011	Apr 07, 2011	0.129000	0.000000	0.129000
Apr, 2011	Apr 26, 2011	Apr 28, 2011	May 06, 2011	0.127000	0.000000	0.127000
May, 2011	May 26, 2011	May 30, 2011	Jun 07, 2011	0.127000	0.000000	0.127000
Jun, 2011	Jun 27, 2011	Jun 29, 2011	Jul 08, 2011	0.127000	0.000000	0.127000
Jul, 2011	Jul 26, 2011	Jul 28, 2011	Aug 08, 2011	0.120000	0.000000	0.120000
Aug, 2011	Aug 26, 2011	Aug 30, 2011	Sep 09, 2011	0.120000	0.000000	0.120000
Sep, 2011	Sep 27, 2011	Sep 29, 2011	Oct 07, 2011	0.120000	0.000000	0.120000
Oct, 2011	Oct 26, 2011	Oct 28, 2011	Nov 07, 2011	N/A	N/A	N/A
Nov, 2011	Nov 25, 2011	Nov 29, 2011	Dec 07, 2011	N/A	N/A	N/A
Dec, 2011	Dec 23, 2011	Dec 29, 2011	Jan 09, 2012	N/A	N/A	N/A
Year to date				0.999000	0.000000	0.999000