In this episode, host Zayla Saunders sits down with Roxane Lapenna to break down the mechanics behind the covered call ETF shelf: from option premium and cash flow generation to the realities of NAV erosion and what it all means for your portfolio.

Zayla Saunders is Vice President of ETF Online Distribution at BMO Global Asset Management (BMO GAM). She is joined by Roxane Lapenna, Head of Retail Investment Specialists at BMO GAM. This episode was recorded live on April 27, 2026.

ETFs mentioned:

· BMO Covered Call Canadian Banks ETF (Ticker: ZWB)

· BMO Covered Call Canadian Banks ETF (Target Cash Flow Units) (Ticker: ZWB.T)

Sources:

ETF Flows, according to the National Bank Report, February 2026

BMO launched the first covered call strategy in Canada in 2011 (BMO CoveredCall Canadian Banks ETF - ZWB): BMO News, February 3, 2011

Press Release - February 12, 2026 - BMO Expands ETF Lineup with New Target Cash Flow Units

Distribution Yield: The most recent regular distribution, or expected distribution, (excluding additional year end distributions) annualized for frequency, divided by currentnet asset value (NAV).

At-the-money: Having a strike price that is equal to the current market price of the underlying holding.

Out-of-the-money: How far the strike price is set relative to the underlying stock price.

T Series - Target Cash Flow Units of BMO ETFs: The Target Cash Flow Units of certain BMO ETFs are designed to provide investors with a monthly distribution based on a target annual distribution rate (not to be confused with “yield”) which is based on the NAVPS at the end of the prior year, or in the case of a newly created series, based on a target annualized distribution rate which is based on the initial starting NAVPS.

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