BMO Covered Call Utilities ETF BMMVF

Primary Symbol: T.ZWU

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 > What's not to like?

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Comment by Konaboyon Jun 28, 2022 9:26am

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Post# 34786969

RE:RE:RE:RE:RE:What's not to like?

Recommend that you do a bit of research on what happens with banks in a recessionary environment, there could still be some downside from here for them.

For sure I would be waiting until after the July (and maybe September) interest rate announcements to figure out the direction of the wind for either ZWU or ZWB.

Long holder ZWU, potentially adding later in the year.