About BMO Canadian High Dividend Covered Call ETF
BMO Canadian High Dividend Covered Call ETF (ZWC.TO) is a covered call etf listed on the Toronto Stock Exchange (TSX). It is managed by BMO and falls within the broad market sector of the Canadian income ETF landscape.
BMO Canadian High Dividend Covered Call ETF uses a covered call option writing strategy on its underlying holdings. The fund sells call options against positions it owns, collecting option premiums that are then distributed to unitholders as income. This approach typically generates higher current income than holding the underlying stocks directly, though it may limit participation in significant upside moves. Distributions from covered call ETFs tend to be variable from month to month, as option premiums fluctuate with market volatility.
ZWC pays distributions monthly — 12 times per year. Distributions are typically paid around the 8th of each month, with the ex-dividend date usually falling around the 25th. Monthly distributions are popular among Canadian income investors because they align with regular monthly expenses and make income planning straightforward.
Based on recent distributions, ZWC has paid approximately $0.1000 per unit per monthly payment. At this rate, the annualized distribution would be approximately $1.2000 per unit. Distributions may change over time based on market conditions, portfolio performance, and the fund manager’s decisions. Past distribution amounts are not a guarantee of future payments.
ZWC provides broad market exposure, holding a diversified mix of stocks or funds across multiple sectors. This diversification can help smooth out sector-specific volatility and provide more stable overall performance.
BMO Canadian High Dividend Covered Call ETF is part of BMO Global Asset Management’s ETF lineup. As one of Canada’s largest banks, BMO brings institutional-grade management and deep capital markets expertise to its ETF products. The BMO ZW series of covered call ETFs has become widely recognized among Canadian income investors.
Canadian dividend investors who hold ZWC can use EarnedWhileYouSlept to track their income from this and other holdings. The app auto-fills distribution data for ZWC.TO, calculates projected annual income, and shows which of your real expenses are covered by your passive income. Whether ZWC is a core holding or a satellite position, tracking its contribution to your overall income picture helps you see your progress toward financial independence.