Exploring the BMO Covered Call Canada High Dividend ETF (ZWQT): All-in-one Covered Call Series
If you’re seeking a way to earn consistent income from your investments, the BMO Covered Call Canada High Dividend ETF (ZWQT) might be a suitable option. This exchange-traded fund (ETF) employs a strategy known as “covered calls” to generate income. Let’s break down what this means and why it could be beneficial for you.
The BMO Global Enhanced Income Fund ETF Series (ZWQT) is an actively managed exchange-traded fund that aims to provide investors with income and long-term capital growth. It achieves this by investing primarily in a diversified portfolio of global equity ETFs that employ covered call strategies, enhancing yield through option premiums.
Portfolio Holdings:
As of December 31, 2024, ZWQT's portfolio is composed of the following ETFs:
This diversified allocation provides exposure to various sectors and regions, aiming to balance income generation with growth potential. The fund's strategy involves writing covered call options on these holdings to enhance income.
Performance and Metrics:
Key Facts:
- Inception Date: June 21, 2023
- Management Expense Ratio (MER): 0.71%
- Distribution Frequency: Monthly
- Recent Distribution (February 2025): $0.085 per unit
Sector Allocation:
This reflects a predominant focus on U.S. markets, with additional exposure to European, Canadian regions and minimal exposure to Asian markets.
For more detailed and up-to-date information, including the latest portfolio holdings and performance metrics, please visit the BMO website.
Before making any investment decisions, it’s advisable to consult with a financial advisor to ensure that ZWQT aligns with your financial objectives and risk tolerance.
Happy Investing!