ETF Sage
Canadian ETF knowledgebase
ETF Sage
Canadian ETF knowledgebase
This is the US Dollar version of ZWH.
The fund 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.U 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.
The ETF trades in U.S. dollars on the TSX.
Not applicable.
| Fundamentals | |
|---|---|
| Category (main) | Active American Equity Income and Covered Calls |
| Category (other) | Active Equity & Covered Calls |
Underlying Index  |
No Index |
| ETF Structure | Active management. No index |
| Asset Class |
Equity Income and Options (Covered Calls) |
| Region |
USA |
| Issuer | BMO |
| ETF Home Page | Available here |
* This is the US Dollar version of ZWH
| Fund Facts | |
|---|---|
| Inception Date | Feb 10, 2014 |
| Total Holdings |
96 |
Distribution Frequency  |
Monthly |
| Leverage |
None |
| Significant Currency Exposure
|
Yes |
| Currency Hedging
|
No |
| Fees | |
|---|---|
| Management Fee |
0.65% |
| Management Expense Ratio (MER) |
0.71% |
| Trading Information | |
|---|---|
| Ticker | ZWH.U |
| Exchange |
TSX (Toronto Stock Exchange) |
| Currency |
USD |
* Trades in USD. This is the US Dollar version of ZWH
| Eligibility | |
|---|---|
| Eligibility * |
RRSP, RRIF, RESP, TFSA, DPSP, RDSP |
| DRIP available ** |
Yes |
| PACC Plan available ** |
Unknown |
| SWP available ** |
Unknown |
* Always check eligibility with your plan operator as plans and accounts can differ
** Not all brokers can facilitate these plans. Check with your broker.
To view the TSX or Morningstar fund page for this ETF click on the Fund Data menu tab or below:
Covered Call Strategy ETFs typically have a dual strategy: they try to replicate the returns of an index, and sell covered call options on some/all of their holdings.
The upside of selling covered call options is that the fund earns a premium for each option sold. The downside is that the upside potential of the ETF is limited due to the covered call option selling.
Before buying an ETF that uses a covered call strategy ensure you understand how such strategies work, and are comfortable with its advantages, risks and limitations.
Options are a somewhat complex financial instrument. They are relatively easy for some investors to understand, difficult for others. Since Covered Call Strategy ETFs use options, it would be wise to understand how they work before investing in any Covered Call Strategy ETFs.
Also understand the amount (if any) of Return of Capital the fund may pay out with distributions. ROC payments reduce your holding's capital.