BMO Covered Call Technology ETF (ZWT.TO)

A tech ETF for TFSA

ZWT pays you income using covered calls. But it can be a little volatile; it depends on your risk profile.

The TXF ETF is a basket of 25 US tech stocks, equal weight, with a covered call. Yield is about 10%, but going forward it may be closer to 7%. Be aware that much of the yield is a ROC. It's not a straight dividend. He watches ZWT, market weighted, 65 holdings, more diversified, lower distribution, but it's outperformed TXF this year.

A strategy to get technology with covered call overlay for yield. Short-term, he is underweight technology. Has big tech in the US too. Would wait for a 5-10% pullback before stepping in. There is more risk in the short-term.