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

This ETF tracks the Dow Jones Industrial Average (hedged to Canadian dollars) and uses covered call options to generate additional income.

Income Investor

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


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Interactive Performance Chart

ZWA was first recommended here on April 21, 2018