Amen Brandon!!! @ approximately 21:30 you popped the BIG question about taxation treatment for those of us that have non rrsp accounts and taxation is always one on the list to check. Thank you Brandon!!!!!! 👍 But zwb has an ROC taxation and he did not talk about that...and zwu also has a foreign income and ROC income which are not favourable in a non rrsp....too bad he did not talk about those in some of the bmo etf's. 😔
ROC (Return of Capital) doesn't get taxed normally, but it drops your ACB (Average Cost Base). So for example if you have BMO stock with an ACB of of $2.20 and you got $0.20 ROC, your ACB is now $2. This means when you do sell the stocks, anything over $2 would be capital gains instead of $2.20. If the ACB reaches $0, then any further ROC is taxable as capital gains if I recall. Also when you sell the stocks, the whole sale is 50% taxable since your ACB is $0.
This is way more risky for the average investor and a great money maker for BMO. When a call and put options sold are being recorded as capital gains, the gain is recorded in the taxation year in which the options are sold. However, if the options are then exercised in the next taxation year, the capital gain from the previous year must be reversed, and either added to the proceeds from the sale of shares (call option), or deducted from the cost basis of shares purchased (put option). To revise the capital gains from the previous year, a T1Adj would have to be filed. Here is the kicker…In practice, however, call option strategies have consistently provided significantly lower overall investment return to the underlying portfolio without any material reduction in risk.
@@brianponcelet3529 Very interesting. You certainly bring home the point, as Marc has stated in previous interviews with guests, that he certainly appreciates having other people manage all the calls and puts. Marc dabbled in it and expressed that is can be quite involved. Add the paper trail needed for the CRA and you have quite a task on your hands. Thank you for your input. I would be interested to hear from Marc on this, if he catches this thread.
Marc and Brandon thank you for putting out a video like this during the "holidays." A time when people generally want to take a break and reflect and spend time with family. ☺
I was considering covered call ETFs until I looked more closely at this. Since inception (2017) their covered call ZWC ETF (-14.8%) has underperformed their own Canadian index fund ZCN (23.86%). That is a massive difference in returns over 5 to 6 years for an additional 2.91% annual yield. Additionally, its management fee is 12 times higher.
@@voo5000 Even including dividends ZWC is behind considerably. The dividend difference ( (currently 7% vs 4.08%) over 6 years (2.92% compounded over 6 years is about 18%) is not going to make up for a -38.66% difference in returns.
@@danjennings4700 That's debatable. I know enough about covered calls to know that they don't necessarily do better in a bear market either. Covered calls work well in a flat market or a very gradual up market. Sharp drops will render them pretty useless because after they expire, you are too far out of the money to make good premiums on subsequent expiry dates. So you're either forced to write the next the options at a lower strike prices which would be sub-optimal because you could get called away forcing a sale of the underlying stock at a lower price, or roll out the positions (if you can) to prevent assignments which adds additional expenses. Basically this ETF is an actively managed ETF and studies have shown time after time that index funds outperform 85% to 90% of actively managed funds or ETFs. It sounds good having a higher "low-risk" monthly income, but at the end of the day it's probably at the expense of getting better long-term returns. You're basically paying someone else .72% a year to fiddle around with your portfolio. I'm not stopping anyone else from getting into this thing, just explaining above why I decided not to.
@@joe97nsx Covered calls work best in a volatile market. The 2 funds are basically indentical with dividends reinvested, I can cherry pick the start date to make zwc on top
Watching this as I write this comment and after the first 8 minutes. So glad you talked about devaluing of principle. I am waiting for any discussion about the ROC component of ZWB for example. Their other etf's have ROC in the taxation component as well. I would be holding this in a non rrsp account so taxation treatment is important to this household. I continue to watch...and Marc, is there a presentation you can do on such a thing as "good ROC" verus "Bad ROC?" Allegedly there is a good and a bad....is that true Marc? Thanks from East Canada
To me, ROC is no different than putting my money in a savings account and instead of trying to live off only the interest I withdraw some of my original principle as well.
@@James_48 I would like to hear Marc's spin in this. You pointed out my concern, withdrawing from the original principle...not what I would want to do as savvy investing is to touch the principle and draw off the dividends. This does not allow for a sustainable long lasting income stream. Thank you James and lets hope Marc might see this thread to respond, after the holiday season of course🎄🇨🇦☺
@@James_48 Not always. ROC is a form of distribution for tax purposes, and some of the income earned in an ETF qualifies are ROC when distributed (such as the use of losses inside the ETF). It's complex.
@@danjennings4700 "If interest, dividends and realized capital gains earned by the ETF are less than declared distributions, an ROC distribution is added to make up the remainder." This is from the RBC website. I don't think it's that complicated. If the ETF is issuing a distribution greater that its earnings then it's considered ROC (the distribution has to come from somewhere). This is done to stabilize the income received. I would agree there's some complexity if there are unrealized gains (that otherwise could have been realized to avoid the ROC) but it doesn't change the fact that ROC reduces your ACB, and eventually will lead to capital gains, which outside of a TFSA and RRSP have implications, if not to the income recipient, to their heir / beneficiary.
I'm retired and own mostly BMO covered call ETFs in my cash, LIF, RIF and TFSA accounts and found this useful - "ROC is short for return of capital and it’s actually a desirable form of income distribution in that it is not taxed in the year received. Instead, your cost base is adjusted to reflect the amount of the ROC. The net effect is that you’ll have to pay more tax when you eventually sell, but at the capital gains rate. Some securities are deliberately structured to generate a high percentage of ROC income. They include real estate investment trusts (REITs), limited partnerships, and some mutual funds. Here’s how it works. Let’s assume you buy 100 shares of a security at $10 in a non-registered account. At year-end, your distributions include $1 in ROC. You deduct that from your original purchase price, giving you an adjusted cost base of $9 per share. If you then were to sell at $12, you’d pay tax at the capital gains rate on $3 per share ($12-$9 = $3), instead of $2 per share based on the original amount you paid. Note that only half of capital gains are taxable. ROC is not desirable if the net asset value of your security declines, because that means you are being paid with your own money and taxed on the payout. But in the context of a REIT or similar security, it’s a tax-efficient way to receive income." --Gordon Pape
my understanding is that even if your US stocks are in an RRSP ETF you have to pay the 15% US withholding tax. Its that true that you have to hold the stocks individually in your RRSP account to get that Tax break
Hi. This video should explain how that works. Enjoy. Taxes on ETFs | A DEFINITIVE Guide to how our ETF investments are taxed. th-cam.com/video/90njz68uER8/w-d-xo.html
I watched the whole 26 min. and hope this supports your video in a way, and shows return from sponsor BMO. I also thumbs up the video, like I always do. But you have to know, every point you've touched on today has already been explained in your earlier videos. no new knowledge... That being said, I ADORE this channel and you're both doing great!
Explained so nicely the ETFs on Covered Call Strategies in nutshell . Obviously the efforts and analysis that goes into it is rather complex. Well. a technocrat like me could understand some of it .Thank you Everyone there .
I have some covered call ETFs… I think I am trading unrealized gains for fairly safe steady income( if I choose a safe ETF, like Canadian banks, that is.) I use some of that to buy businesses with opportunity for growth and a good dividend record…trading income for unrealized gains. If I’m renting out my house and it’s value goes down with the market, I still get the rent. I think of covered calls kind of the same way, I guess.
@James Rankin I would like to hear Marc's spin in this. You pointed out my concern, withdrawing from the original principle...not what I would want to do as savvy investing is to touch the principle and draw off the dividends. This does not allow for a sustainable long lasting income stream. Thank you James and lets hope Marc might see this thread to respond, after the holiday season of course🎄🇨🇦☺
Thanks for the great video you provided. I personally like the BMO covers call strategy very much but I have a question when will the fund managers buy back those equities they are going to hold? Are there any corresponding strategies for BMO to buy back those equities automatically?
“At the money” is when you write a call option at the current stock price. “Out of the money” is when you write a call option for higher than the stock price. They typically charge a higher premium for “at the money” and a lower premium for “out of the money” call options.
bmo only writes on 50% of the holdings which is great.. and you still get a good yield.. Im wondering what hamilton HDIV does and HHL.. Im going to look more closely at those now, it seems to me that they write on 75% if I recall, also they hold other covered call etf's so in fact they are writing covered calls on covered calls... this to me seems much more risky.
Interesting strategy for sure but I think I will stick with my blue chip Canadian dividend stocks… but I’m old hahahaha. Thanks for bringing light to these new investment options. All the best in 2023 Marc and Brandon.
Hi Guys, I am asking specifically about BMO's ZWU. This is the ETF based on utility companies. It is very attractive. I think it is based on Canadian utility companies. I agree that the covered call is a low risk strategy, no problem there! My concern is this; in my experience it is hard to write covered calls on Canadian stocks because the volume just isn't there as it is in the American counterparts. How does BMO write lucrative covered calls on a Candian product?
Hi Mark. I totally agree that the options market on US stocks is much larger the Canadian segment, but the Canadian options market is still very robust. Especially on the larger, liquid companies, it's not a problem implementing this strategy. I've never seen it as in issue, at least. Thanks for your question. - Marc
The real risk is not in the price going up and missing the opportunity to sell it for more, the real risk is the price goes down significantly enough where the option strike price is lower than the amount you originally bought it for. Thus selling at a loss.
In practice, however, call option strategies have consistently provided significantly lower overall investment return to the underlying portfolio without any material reduction in risk.
Watched and liked, thanks guys! Funny how these become popular when the market sucks, lol. I invest in them quite a bit since we're close to retirement (5-10 years) and want to invest for cash flow.
Great video, I could not retire without ' coverd call etf's' in my portfolio. BMO make up of 75% of my covered call etf's. Thanks Brandon & Marc this !!
who's buying the call on the way down or in a bear market ? For the investor , do we expect to make more distributions on the way up when your selling calls into a bull market ? thx great chat👌
Marc, one comment on Adams video recently claims that non dividend paying stocks over all have more gains over time compared to dividend paying stocks. I challenged her position on this. I got to then thinking if this might be a topic of discussion for you to present. I respectfully disagreed with the lady who made these claims. You can see the several back and forth discussion we had on Adams latest video if interested. Food for thought Marc, with all your experience and excellent delivery and requests from the viewers on possible topics of interest, I thought I would put that out there for you to consider. All the best in resilience and more peace in the coming year and beyond to you, Brandon and your families from East Canada🥂🍷🎉🇨🇦
as others have pointed out the huge management fee that is typically associated with these kinds of etf, my only objection to choosing this is why don't I just sell the calls myself and not pay any fees lol. Its not that annoying if you always sell 1 month out each time
@@MarkoKoskenoja fair point. But I wonder if your portfolio has only 35 stocks that you are invested and doing CC's for, isn't that too much? This is obviously subjective, but i feel like in order to have an effective portfolio, perhaps it's better to trim down from 35 and be more focused. So at this point it isn't the issue of having to manage multiple CC's/rolls, but you just have too many open positions at once
Great insight on BMO's strategy, thank you. Can you find out how quickly BMO reinvests the proceeds when a position is called away? Is it immediately, next day, or the next month?
Covered call etfs tend to write short term , close to the Calls. Captured all downside ann limit UPSIDE DOWN. The av been disappointing though the yard. Much more profitable an index and write minimum 3 month out of the money CALL YOURSELF ON THE ETF. You should earn more this way
Every single covered call etf I’ve ever seen basically pays an enticing dividend BUT the principle value of that asset ALWAYS tanks over time. I would stay away
I would never invest with a Canadian back , they like to tell customers they side with government and will go above and beyond to freeze your money if you don’t agree with them
Haven’t watched this video yet but I do get a laugh thinking about how it seems like you’ve gone from talking about J&J to copying our favourite PII investor Adriano!
Hi there, they are not 'copying" Adriano, they are providing a variety of investing considerations and adding to their material. Their channel is evolving and one way to evolve is to also include ETF's and hopefully they will look at split corps. Adriano has one take on how to deliver his information. Other channels have the right to chose how they would like to deliver as well. I like that Marc and Brandon are looking into this. As you also are aware, Adriano has commented that his audience are mostly close to retired people. Marc and Brandon's channel also have a large younger audience which, again, helps to inform more people about investing options. Cheers, East Canada👍🇨🇦
Great video - Check out "Passive Income Investing" if you want to know more about these, tons of videos about the covered call approach, he is the authority on this style of investing.
📈📚 Join The Investing Academy ➤ bit.ly/theinvestingacademy
Thank you BMO ETFs for sponsoring this video. Learn more here - bit.ly/BMO-ETFs
Sound like you just did a line lol
0
Amen Brandon!!! @ approximately 21:30 you popped the BIG question about taxation treatment for those of us that have non rrsp accounts and taxation is always one on the list to check. Thank you Brandon!!!!!! 👍 But zwb has an ROC taxation and he did not talk about that...and zwu also has a foreign income and ROC income which are not favourable in a non rrsp....too bad he did not talk about those in some of the bmo etf's. 😔
ROC (Return of Capital) doesn't get taxed normally, but it drops your ACB (Average Cost Base). So for example if you have BMO stock with an ACB of of $2.20 and you got $0.20 ROC, your ACB is now $2. This means when you do sell the stocks, anything over $2 would be capital gains instead of $2.20. If the ACB reaches $0, then any further ROC is taxable as capital gains if I recall. Also when you sell the stocks, the whole sale is 50% taxable since your ACB is $0.
This is way more risky for the average investor and a great money maker for BMO.
When a call and put options sold are being recorded as capital gains, the gain is recorded in the taxation year in which the options are sold. However, if the options are then exercised in the next taxation year, the capital gain from the previous year must be reversed, and either added to the proceeds from the sale of shares (call option), or deducted from the cost basis of shares purchased (put option). To revise the capital gains from the previous year, a T1Adj would have to be filed.
Here is the kicker…In practice, however, call option strategies have consistently provided significantly lower overall investment return to the underlying portfolio without any material reduction in risk.
@@brianponcelet3529 Very interesting. You certainly bring home the point, as Marc has stated in previous interviews with guests, that he certainly appreciates having other people manage all the calls and puts. Marc dabbled in it and expressed that is can be quite involved. Add the paper trail needed for the CRA and you have quite a task on your hands. Thank you for your input. I would be interested to hear from Marc on this, if he catches this thread.
Marc and Brandon thank you for putting out a video like this during the "holidays." A time when people generally want to take a break and reflect and spend time with family. ☺
Great job to all 3 of you explaining BMO covered call ETFs. I'm retired and living off my dividends from mostly BMO ZWU, ZWC, ZWP, ZWB and ZPAY.
Try QYLD as well. Consistently 11%..
How much would I need to invest into ETFs to make enough to pay all my bills? Is it quite a bit?
I was considering covered call ETFs until I looked more closely at this. Since inception (2017) their covered call ZWC ETF (-14.8%) has underperformed their own Canadian index fund ZCN (23.86%). That is a massive difference in returns over 5 to 6 years for an additional 2.91% annual yield. Additionally, its management fee is 12 times higher.
I think your just looking at stock prices, ZWC beats it on total returns with dividends
@@voo5000 Even including dividends ZWC is behind considerably. The dividend difference ( (currently 7% vs 4.08%) over 6 years (2.92% compounded over 6 years is about 18%) is not going to make up for a -38.66% difference in returns.
It's because you're comparing at time of a bull market, where CC ETFs will underperform. The key is what does the next 5 years' market look like?
@@danjennings4700 That's debatable. I know enough about covered calls to know that they don't necessarily do better in a bear market either. Covered calls work well in a flat market or a very gradual up market. Sharp drops will render them pretty useless because after they expire, you are too far out of the money to make good premiums on subsequent expiry dates. So you're either forced to write the next the options at a lower strike prices which would be sub-optimal because you could get called away forcing a sale of the underlying stock at a lower price, or roll out the positions (if you can) to prevent assignments which adds additional expenses. Basically this ETF is an actively managed ETF and studies have shown time after time that index funds outperform 85% to 90% of actively managed funds or ETFs. It sounds good having a higher "low-risk" monthly income, but at the end of the day it's probably at the expense of getting better long-term returns. You're basically paying someone else .72% a year to fiddle around with your portfolio. I'm not stopping anyone else from getting into this thing, just explaining above why I decided not to.
@@joe97nsx Covered calls work best in a volatile market. The 2 funds are basically indentical with dividends reinvested, I can cherry pick the start date to make zwc on top
Watching this as I write this comment and after the first 8 minutes. So glad you talked about devaluing of principle. I am waiting for any discussion about the ROC component of ZWB for example. Their other etf's have ROC in the taxation component as well. I would be holding this in a non rrsp account so taxation treatment is important to this household. I continue to watch...and Marc, is there a presentation you can do on such a thing as "good ROC" verus "Bad ROC?" Allegedly there is a good and a bad....is that true Marc? Thanks from East Canada
To me, ROC is no different than putting my money in a savings account and instead of trying to live off only the interest I withdraw some of my original principle as well.
@@James_48 I would like to hear Marc's spin in this. You pointed out my concern, withdrawing from the original principle...not what I would want to do as savvy investing is to touch the principle and draw off the dividends. This does not allow for a sustainable long lasting income stream. Thank you James and lets hope Marc might see this thread to respond, after the holiday season of course🎄🇨🇦☺
@@James_48 Not always. ROC is a form of distribution for tax purposes, and some of the income earned in an ETF qualifies are ROC when distributed (such as the use of losses inside the ETF). It's complex.
@@danjennings4700 "If interest, dividends and realized capital gains earned by the ETF are less than declared distributions, an ROC distribution is added to make up the remainder." This is from the RBC website. I don't think it's that complicated. If the ETF is issuing a distribution greater that its earnings then it's considered ROC (the distribution has to come from somewhere). This is done to stabilize the income received. I would agree there's some complexity if there are unrealized gains (that otherwise could have been realized to avoid the ROC) but it doesn't change the fact that ROC reduces your ACB, and eventually will lead to capital gains, which outside of a TFSA and RRSP have implications, if not to the income recipient, to their heir / beneficiary.
I'm retired and own mostly BMO covered call ETFs in my cash, LIF, RIF and TFSA accounts and found this useful - "ROC is short for return of capital and it’s actually a desirable form of income distribution in that it is not taxed in the year received. Instead, your cost base is adjusted to reflect the amount of the ROC. The net effect is that you’ll have to pay more tax when you eventually sell, but at the capital gains rate.
Some securities are deliberately structured to generate a high percentage of ROC income. They include real estate investment trusts (REITs), limited partnerships, and some mutual funds.
Here’s how it works. Let’s assume you buy 100 shares of a security at $10 in a non-registered account. At year-end, your distributions include $1 in ROC. You deduct that from your original purchase price, giving you an adjusted cost base of $9 per share. If you then were to sell at $12, you’d pay tax at the capital gains rate on $3 per share ($12-$9 = $3), instead of $2 per share based on the original amount you paid. Note that only half of capital gains are taxable.
ROC is not desirable if the net asset value of your security declines, because that means you are being paid with your own money and taxed on the payout. But in the context of a REIT or similar security, it’s a tax-efficient way to receive income."
--Gordon Pape
my understanding is that even if your US stocks are in an RRSP ETF you have to pay the 15% US withholding tax. Its that true that you have to hold the stocks individually in your RRSP account to get that Tax break
That applies if you have a Canadian ETF that holds US stocks but not if You have a US ETF or US individual stocks
No withholding tax in RRSP - th-cam.com/video/yAz9rK5V7FA/w-d-xo.html
Hi. This video should explain how that works. Enjoy.
Taxes on ETFs | A DEFINITIVE Guide to how our ETF investments are taxed.
th-cam.com/video/90njz68uER8/w-d-xo.html
I hold some BMO ETFs . In the long term the monthly income reinvested and long term appreciation has paid off.
Still new fairly new to investing, and definitely learning a lot from watching your videos Brandon and Marc.
I watched the whole 26 min. and hope this supports your video in a way, and shows return from sponsor BMO. I also thumbs up the video, like I always do.
But you have to know, every point you've touched on today has already been explained in your earlier videos. no new knowledge...
That being said, I ADORE this channel and you're both doing great!
Explained so nicely the ETFs on Covered Call Strategies in nutshell . Obviously the efforts and analysis that goes into it is rather complex. Well. a technocrat like me could understand some of it .Thank you Everyone there .
Great interview. A must watch for people new to covered call ETFs.
What are the fees involved to get in or out is it a front or rear load
Great job guys👍🏻
I have some covered call ETFs… I think I am trading unrealized gains for fairly safe steady income( if I choose a safe ETF, like Canadian banks, that is.)
I use some of that to buy businesses with opportunity for growth and a good dividend record…trading income for unrealized gains. If I’m renting out my house and it’s value goes down with the market, I still get the rent. I think of covered calls kind of the same way, I guess.
That's a good analogy!
Awesome video Brandon, awesome content here!
@James Rankin I would like to hear Marc's spin in this. You pointed out my concern, withdrawing from the original principle...not what I would want to do as savvy investing is to touch the principle and draw off the dividends. This does not allow for a sustainable long lasting income stream. Thank you James and lets hope Marc might see this thread to respond, after the holiday season of course🎄🇨🇦☺
Doesn't the term Enhanced normally mean leverage? I dont think bmo uses leverage
BMO covered call ETFs don't use leverage and have used the "enhanced income" term since introducing the first CC ETFs to Canada in 2011
Awesome interview. Thanks a lot for this great content!
Is a covered call better suited for a bear market environment?
Bear and sideways yes b/c in a bear the premiums are highest flat is decent but you basically play ranges. Don’t bother in uptrending market just buy
Thanks for the great video you provided. I personally like the BMO covers call strategy very much but I have a question when will the fund managers buy back those equities they are going to hold? Are there any corresponding strategies for BMO to buy back those equities automatically?
What is meant by "in the money" and/or "out of the money"?
“At the money” is when you write a call option at the current stock price.
“Out of the money” is when you write a call option for higher than the stock price.
They typically charge a higher premium for “at the money” and a lower premium for “out of the money” call options.
bmo only writes on 50% of the holdings which is great.. and you still get a good yield.. Im wondering what hamilton HDIV does and HHL.. Im going to look more closely at those now, it seems to me that they write on 75% if I recall, also they hold other covered call etf's so in fact they are writing covered calls on covered calls... this to me seems much more risky.
Just watched 26min long advertisement from a BMO.
Interesting strategy for sure but I think I will stick with my blue chip Canadian dividend stocks… but I’m old hahahaha. Thanks for bringing light to these new investment options. All the best in 2023 Marc and Brandon.
Hi Guys, I am asking specifically about BMO's ZWU. This is the ETF based on utility companies. It is very attractive. I think it is based on Canadian utility companies. I agree that the covered call is a low risk strategy, no problem there! My concern is this; in my experience it is hard to write covered calls on Canadian stocks because the volume just isn't there as it is in the American counterparts. How does BMO write lucrative covered calls on a Candian product?
Hi Mark. I totally agree that the options market on US stocks is much larger the Canadian segment, but the Canadian options market is still very robust. Especially on the larger, liquid companies, it's not a problem implementing this strategy. I've never seen it as in issue, at least. Thanks for your question. - Marc
The real risk is not in the price going up and missing the opportunity to sell it for more, the real risk is the price goes down significantly enough where the option strike price is lower than the amount you originally bought it for. Thus selling at a loss.
Would you still sell covered calls on underperforming stocks?
In practice, however, call option strategies have consistently provided significantly lower overall investment return to the underlying portfolio without any material reduction in risk.
Watched and liked, thanks guys! Funny how these become popular when the market sucks, lol. I invest in them quite a bit since we're close to retirement (5-10 years) and want to invest for cash flow.
Great video, I could not retire without ' coverd call etf's' in my portfolio. BMO make up of 75% of my covered call etf's. Thanks Brandon & Marc this !!
Me too!
Try QYLD as well. Consistently 11%..
who's buying the call on the way down or in a bear market ? For the investor , do we expect to make more distributions on the way up when your selling calls into a bull market ? thx great chat👌
So what happens on the 50% covered call options after they sell them? Does it get replenished automatically?
Thanks.
Marc, one comment on Adams video recently claims that non dividend paying stocks over all have more gains over time compared to dividend paying stocks. I challenged her position on this. I got to then thinking if this might be a topic of discussion for you to present. I respectfully disagreed with the lady who made these claims. You can see the several back and forth discussion we had on Adams latest video if interested. Food for thought Marc, with all your experience and excellent delivery and requests from the viewers on possible topics of interest, I thought I would put that out there for you to consider. All the best in resilience and more peace in the coming year and beyond to you, Brandon and your families from East Canada🥂🍷🎉🇨🇦
as others have pointed out the huge management fee that is typically associated with these kinds of etf, my only objection to choosing this is why don't I just sell the calls myself and not pay any fees lol. Its not that annoying if you always sell 1 month out each time
At the 11:40 mark of this video they explain why that's difficult to do when you have an ETF holding 35 or so individual stocks.
@@MarkoKoskenoja fair point. But I wonder if your portfolio has only 35 stocks that you are invested and doing CC's for, isn't that too much? This is obviously subjective, but i feel like in order to have an effective portfolio, perhaps it's better to trim down from 35 and be more focused. So at this point it isn't the issue of having to manage multiple CC's/rolls, but you just have too many open positions at once
Great insight on BMO's strategy, thank you. Can you find out how quickly BMO reinvests the proceeds when a position is called away? Is it immediately, next day, or the next month?
Covered call etfs tend to write short term , close to the Calls. Captured all downside ann limit UPSIDE DOWN. The av been disappointing though the yard. Much more profitable an index and write minimum 3 month out of the money CALL YOURSELF ON THE ETF. You should earn more this way
Anyone with AMC at $20-$70 is going to be holding massive bags after RS.
Every single covered call etf I’ve ever seen basically pays an enticing dividend BUT the principle value of that asset ALWAYS tanks over time. I would stay away
let’s goooooooooooo
Thanks Omanand! Your suit is so hot
I would never invest with a Canadian back , they like to tell customers they side with government and will go above and beyond to freeze your money if you don’t agree with them
Naw, I’ll just buy Bitcoin. Thanks bankers! Bitcoin was the best performing commodity in January.
BMO is better than RBC - why hired Grade 10 or 12 to do your paperwork ???
Point of view you missed clicked
Indian guy running bmo bank. No wonder Canada is screwed .
Haven’t watched this video yet but I do get a laugh thinking about how it seems like you’ve gone from talking about J&J to copying our favourite PII investor Adriano!
Hi there, they are not 'copying" Adriano, they are providing a variety of investing considerations and adding to their material. Their channel is evolving and one way to evolve is to also include ETF's and hopefully they will look at split corps. Adriano has one take on how to deliver his information. Other channels have the right to chose how they would like to deliver as well. I like that Marc and Brandon are looking into this. As you also are aware, Adriano has commented that his audience are mostly close to retired people. Marc and Brandon's channel also have a large younger audience which, again, helps to inform more people about investing options. Cheers, East Canada👍🇨🇦
agreed w Paul Santori
Who wants to bet that this " expert" coincidentally either works for, has stocks in, or gets funding from bmo?
ummmmm. it says in the title he's a Portfolio Manager with BMO ETFs. I'll make that bet for sure. - Marc
Great video - Check out "Passive Income Investing" if you want to know more about these, tons of videos about the covered call approach, he is the authority on this style of investing.