-
BMO Covered Call Canadian Banks ETF (ZWB)
-
Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
Q: In your answer to me on the BMO and Hamilton covered call ETF's regarding " return of capital " you refer to ZWB having a return of capital of 75% and HMAX as 84% .... Your answer basically addressed taxation which in my case is inside a RRIF account...... And in a follow up question from Bruce you give a brief explanation. I don't think I understand what the term means as to me it sounds like I am getting my own money back which strikes me as a bad thing. Could 5i explain just what exactly the term means ? And whether or not it is a good thing, bad thing , or nothing to be concerned about ..... Thank you as always for your sound advice .....
5i Research Answer:
It is a difficult concept at times but it is not 'automatically' bad. ETF manager decisions must...
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in ZWB.