Description

The BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF is designed to offer investors exposure to a portfolio of leading Dow Jones Industrial Average companies, concurrently generating income through the strategic sale of call options. The fund directly invests in securities comprising the Dow Jones Industrial Average and dynamically writes covered call options. These call options are always sold out-of-the-money and are chosen following an analysis of their implied volatility. The premiums earned from these options provide a limited buffer against potential market declines. To ensure ongoing representation of the broad market and American industry, the underlying stock portfolio undergoes regular rebalancing, and expiring options are consistently rolled forward. Moreover, if this ETF invests in other underlying ETFs, its management fees are proportionally reduced by the fees already paid on those underlying funds, thereby preventing any duplication of management expenses.