About BMO Covered Call Technology ETF
BMO Covered Call Technology ETF (ZWT.TO) is a covered call etf listed on the Toronto Stock Exchange (TSX). It is managed by BMO and falls within the technology sector of the Canadian income ETF landscape.
BMO Covered Call Technology 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.
ZWT pays distributions monthly — 12 times per year. Monthly distributions are popular among Canadian income investors because they align with regular monthly expenses and make income planning straightforward.
ZWT provides exposure to the technology sector. While tech companies have not traditionally been known for dividends, the combination of covered call strategies with tech holdings can generate meaningful income from a growth-oriented sector.
Canadian dividend investors who hold ZWT can use EarnedWhileYouSlept to track their income from this and other holdings. The app auto-fills distribution data for ZWT.TO, calculates projected annual income, and shows which of your real expenses are covered by your passive income. Whether ZWT is a core holding or a satellite position, tracking its contribution to your overall income picture helps you see your progress toward financial independence.