Bullboard - Stock Discussion Forum 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... see more

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BMO Covered Call Utilities ETF > In A Market That Trades Sideways This Is A Good Option

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Post by DeanEdmonton on Dec 22, 2022 11:30am

In A Market That Trades Sideways This Is A Good Option

Because of the covered call strategy to boost the monthly payout, you aren't going to make any SP appreciation in a rapidly rising market. However, if you need the dividend yield to live on, this is still better than a GIC at todays rates. Principal value of a GIC does not go up or down and it yields 5%. This yields 8%. Not hard to see the upside. That and dividends get treated a whole lot more favourably than interest income, so to the extent part of the payout is eligible dividends that is also a plus.

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Comment by ANALOG GUY on Jan 13, 2023 5:23pm

yes sir Been accumulating 10,000 shares in a cash account $9600/yr dividends 8.15% is my average tax efficient WAY better than a GIC pay me every month forever thanks I keep thinking all the times Larry Berman recommended this "sleep good at night " ETF at higher prices than here GLTA

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BMO Covered Call Utilities ETF