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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

Post by DeanEdmontonon Jun 03, 2023 4:08pm
358 Views
Post# 35478676

reduced Dividend on ZWU, now On ZWB

reduced Dividend on ZWU, now On ZWBBMO must have changed out the team that looks after these two covered call ETFs becuase the results are sure no where near what they used to be. Not holding any of either for the past while, and am unlikely to go back to playing the pre vs ex Dividend game with these shares. Hard to believe you can end up with a return, net of Return of Capital, that is lower than the weighted dividends on the shares that make up the funds. That take a special kind of really poor performance.
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