BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB) Hits New 1-Year High - What's Next?

Key Points

• 52-week high: ZWB.TO traded as high as C$26.68 on Monday and last traded at C$26.66 on volume of about 47,206 shares, topping recent moving averages (50-day C$25.61; 200-day C$24.69).
• Monthly dividend: The ETF paid a C$0.12 monthly dividend on April 2 (ex‑dividend March 30), implying an annualized yield of about 5.4%.
• Investment strategy: ZWB provides exposure to Canadian banks and seeks income/ downside mitigation by writing covered call options on its holdings.

BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB - ) shares reached a new 52-week high during trading on Monday . The company traded as high as C$26.68 and last traded at C$26.66, with a volume of 47206 shares trading hands. The stock had previously closed at C$26.62.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Price Performance

The firm has a 50 day moving average of C$25.61 and a two-hundred day moving average of C$24.69.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Dividend Announcement

The company also recently disclosed a monthly dividend, which was paid on Thursday, April 2nd. Investors of record on Thursday, April 2nd were given a dividend of $0.12 per share. This represents a c) annualized dividend and a yield of 5.4%. The ex-dividend date of this dividend was Monday, March 30th.

BMO Covered Call Canadian Banks ETF (ZWB.TO) Company Profile

The ETF seeks to provide exposure to the performance of a portfolio of Canadian banks to generate income and to provide long-term capital appreciation while mitigating downside risk through the use of covered call options. To achieve investment objective the ETF will primarily invest in and hold the securities of Canadian banks, ETFs, or a combination of these. Depending on market volatility and other factors, the ETF will write covered call options on these securities. Under such call options, the ETF will sell to the buyer of the option, for a premium, either a right to buy the security from the ETF at an exercise price or, if the option is cash settled, the right to a payment from the ETF equal to the difference between the value of the security and the exercise price.

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