BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB) Hits New 12-Month High - Time to Buy?

Key Points

• New 52-week high: The ETF traded at a fresh 52-week high of C$27.69 on Friday with 21,511 shares changing hands, trading above its 50-day (C$26.05) and 200-day (C$25.09) moving averages.
• Monthly dividend: The fund paid a $0.12 per share monthly dividend (record and payment dated April 2, ex-dividend March 30), implying an annualized yield of about 5.2%.
• Strategy: ZWB primarily holds Canadian bank securities and uses covered call writing to generate income and help mitigate downside risk by selling call options for premiums or cash-settled payments.

BMO Covered Call Canadian Banks ETF (ZWB.TO) (TSE:ZWB - )'s share price hit a new 52-week high during mid-day trading on Friday . The stock traded as high as C$27.69 and last traded at C$27.69, with a volume of 21511 shares changing hands. The stock had previously closed at C$27.56.

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

The business's 50-day simple moving average is C$26.05 and its two-hundred day simple moving average is C$25.09.

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

The company also recently declared a monthly dividend, which was paid on Thursday, April 2nd. Stockholders of record on Thursday, April 2nd were issued a dividend of $0.12 per share. This represents a c) annualized dividend and a dividend yield of 5.2%. The ex-dividend date was Monday, March 30th.

About BMO Covered Call Canadian Banks ETF (ZWB.TO)

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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