BMO Covered Call Utilities ETF T.ZWU

Take a Look at the Return Of Cpaital Amount for 2022.

[DeanEdmonton]

For 2022 ZWU paid out 8 cents a month dividend, showing just over an 8% yeild. However, for 22022, almost exactly half of that payout was return of capital. That is them giving you back your own money. This means the effective yeild is under 4%, and that means you are at best earning around the weighted average dividends paid out by the stocks the fund holds. Ergo, the covered call program and fees must be costing more than it is earning. Not exactly what most are looking for.

Company Name	Symbol	% of Net Assets	Dividend Yield %	P/E
BMO Equal Weight Utilities ETF	ZUT	5.54	--	--
Fortis Inc	FTS	5.43	3.69	20.82
BCE Inc	BCE	5.21	6.05	22.76
Pembina Pipeline Corp	PPL	5.10	6.14	8.79
Enbridge Inc	ENB	5.01	6.82	44.15
PPL Corp	PPL	4.90	3.41	28.58
Duke Energy Corp	DUK	4.86	4.17	18.91
Emera Inc	EMA	4.77	4.70	13.90
TC Energy Corp	TRP	4.63	6.64	34.86
Exelon Corp	EXC	4.59	3.53	18.02

Portfolio Allocation Total Net Assets: $1.9B

 

$1.9B

Total Net Assets

Asset Type	Short %	0%	Long %	Net %
Cash	0.08		1.57	1.49
U.S. Stocks	0.42		34.87	34.45
Non-U.S. Stocks	0.00		64.59	64.59
U.S. Bonds	0.00		0.00	0.00
Non-U.S. Bonds	0.00		0.00	0.00
Other	0.53		0.00	-0.53

Sector Weightings

Sector Weightings

Sector	Short %	0%	Long %	Net %	Category %
Utilities	0.00		56.33	56.02	9.86
Energy	0.00		22.48	22.36	2.62
Communication Services	0.00		21.19	21.07	6.76
Basic Materials	0.00		0.00	0.00	1.46
Consumer Cyclical	0.00		0.00	0.00	3.63
Consumer Defensive	0.00		0.00	0.00	2.25
Financial Services	0.00		0.00	0.00	1.48
Healthcare	0.00		0.00	0.00	36.50
Industrials	0.00		0.00	0.00	2.77
Real Estate	0.00		0.00	0.00	0.28
Technology	0.00		0.00	0.00	30.35

[ANALOG GUY]

I've always thought Covered Call ETFS are a Yield Enhancer not a Capital Enhancer. Return Of Capital (ROC) is something that I've seen smart people explain and I'm still not sure I understand it. There is Good ROC and Bad ROC. anyway, when markets are in recession coming mode, I prefer Covered Call ETFs  when the Bull returns I will switch out of them i also own things like SIA

[DeanEdmonton]

Analog Guy - Don't know if this helps but here is a high level explanation of ROC. The Return of Capital lowers your average cost base on the share, and this is calculated in Dec and applied by most brokerages in April or May. You should see the adjustment in the average cost per share reflected in your account. So long term it means you effectively increase the potential capital gains on

[ANALOG GUY]

Dean, check out my post on "ENCC" no ROC at all in 2022 distributions  Big time yield  Energy ETF that moves up and down with the oil price  Added 3000 yesterday at  $10.40