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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

Post by Rainydayon Jun 27, 2022 4:16pm
892 Views
Post# 34785626

Update

UpdateSince the last post in February ZWB has dropped from $21.50 to about $18.75 (ex-dividend). That's about a 13% decline and the yield has increased from 6.1% to 7%. Over the past 5 years the dividends have increased about 7% per year but the share price has only gone up about a dollar as the market was good (except for March 2022) and investors weren't attracted to covered call ETF's in a strong market. ZWB now looks quite attractive at this price in these markets.

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