Description

The BMO Europe High Dividend Covered Call Hedged to CAD ETF offers a dual objective: providing investors with access to a high-dividend portfolio of European companies and generating additional income through covered call options. The fund's underlying investments are broadly diversified across various sectors and strategically weighted based on their dividend yield. A rigorous, rules-based methodology guides the selection of securities, scrutinizing factors such as dividend growth rates, current yield, payout ratios, and market liquidity. The ETF proactively sells out-of-the-money covered call options, with selection driven by the analysis of available premiums, which in turn offers a measure of downside protection. To safeguard against currency fluctuations for Canadian investors, all foreign currency exposure is hedged back to the Canadian dollar. Furthermore, given its structure as a fund of funds, the management fees charged by this ETF are reduced to account for fees already incurred within its constituent underlying funds.