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

BMO Covered Call Utilities ETF > Sad but true ZWU

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Post by ANALOG GUYon Jul 19, 2023 6:06pm

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Post# 35548841

Sad but true ZWU

if you look at the BMO info site for distributions in 2022

Total Distribution $.96

eligible dividends $.34

Capital gains $0 ..... which means they made $0 from their Option strategy all year!

ROC (return of capital) $.54

Foreign income $.097

somebody please correct me if I'm wrong

ROC was 56% of the distribution in 2022