BMO Covered Call DJIA Hedged to CAD ETF (TSX: ZWA)

We last reviewed this ETF in June. Since then, the Dow has hit several new records, but the fund is only up by four cents over that period. Why? Because of the covered call options that are written to generate income. They’re doing just that – the distributions are a steady $0.10 a month (there was a $0.02 top up in December). But the trade-off for the good yield is lower capital gains. - Gordon Pape