zwc etf

ZWC – Full review of BMO High Dividend ETF Covered Call

Investment objective

The BMO Canadian High Dividend Covered Call ETF (ZWC)  has been designed to provide exposure to a dividend focused portfolio, while earning call option premiums. The underlying portfolio is yield-weighted and broadly diversified across sectors.

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The fund selection methodology uses 4 factors: – Liquidity; – Dividend growth rate; – Yield and payout ratio.

What’s a covered call ETF?

What’s unique about this ETF is that it uses covered calls to protect against downside risk. This being said, the covered call strategy provides limited downside protection. Also, when you write a covered call, you give up some of the stock’s potential gains. These ETFs will tend to have a higher yield and a lower performance.

ZWC is an excellent option for conservative investors looking for a steady income and low volatility. It’s tax-efficient because the dividends are all coming from Canadian companies. The financial sector and Energy represents 53% of the total overall sector allocation.

Please consult our recent post comparing ZWC with other popular High Dividend ETFs in Canada.

Historical performance

ETFDiv
Yld
ZWC6.80%

Historical performance updated daily

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ZWC MER

ETFMER*
%
ZWC – BMO CDN High
Div Covered Call
0.72

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ZWC Stock Profile

Updated daily

ZWC Stock 52 weeks high and low

Updated daily

ZWC Dividend history

AmountDividend TypeFrequencyEx-Div DateRecord DatePay DateDeclare Date
0.1000RegularMonthly1/29/20241/30/20242/2/20241/22/2024
0.1000RegularMonthly12/27/202312/28/20231/3/202412/18/2023
0.1000RegularMonthly11/28/202311/29/202312/4/202311/21/2023
0.1100RegularMonthly10/27/202310/30/202311/2/202310/20/2023
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ZWC ETF Holdings

Company NameAllocation
Canadian National Railway Co5.4%
BCE Inc5.2%
TELUS Corp5.1%
Enbridge Inc5.0%
Royal Bank of Canada5.0%
Canadian Imperial Bank of Commerce4.9%
Bank of Nova Scotia4.7%
The Toronto-Dominion Bank4.6%
Manulife Financial Corp4.3%
Please consult issuers’ website for up-to-date data

Similar ETFs

NameDiv
yield
MER
High Dividend Yield (Diversified)
ZWC – BMO CDN High Div Covered Call6.630.72
HDIV -Hamilton Enhanced Multi-Sector Covered Call9.58na
HDIF -Harvest Diversified Monthly Income ETF10.05na
ZWH – BMO US High Dividend Covered Call5.580.71
ZWS – BMO US High Dividend Covered Call Hedged to CAD5.630.71
High Dividend Yield (Europe)
ZWE – BMO Europe High Div CC CAD Hedge6.370.71
ZWP – BMO Europe High Div Cov Call6.480.71
High Dividend Yield (Sector Focused)  
LIFE – Evolve Global Healthcare Enhance Yld6.420.68
CALL – Evolve US Banks Enhanced Yield6.480.69
LIFE-B – Evolve Global Healthcare Enhance Yld Unheg5.880.68
FIE – Ishares CDN Fin Mthly Income5.850.89
HPF – Harvest Energy Leaders Plus Income4.431.71