ZWH BMO US High Dividend Covered Call ETF REVIEW; the ZWH BMO US High Dividend Covered Call ETF is an amazing ETF for Canadians looking for passive income on their savings. If your looking to have a secondary income source investing is a great way to do so. Dividend income is taxed differently than regular income which is a bonus especially if you have it inside of a TFSA account. the ZWH BMO US High Dividend Covered Call ETF currently has a 6.6% dividend and has doubled its underlying value over the last 7 years. This is a winning combination in my eyes.

BMO US High Dividend Covered Call ETF 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. The Fund screens for securities for dividend growth, sustainability, and option liquidity. The Fund also dynamically writes covered call options. The call options are written out of the money and selected based on analyzing the option's implied volatility. The option premium provides limited downside protection. The underlying portfolio is rebalanced to maintain broad sector diversification and options are rolled forward upon expiry. In addition, ZWH may hold other underlying ETFs, the management fees charged are reduced by management fees paid on the underlying ETFs, thereby avoiding duplication of the management fees.

Fund Benefits

Designed for investors looking for higher income from equity portfolios
Invested in a diversified portfolio of high dividend U.S. companies
Call option writing reduces volatility
Further diversification from U.S. currency
Professionally managed by BMO Global Asset Management

This ETF has a medium risk

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