BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF (Target Cash Flow Units)

Target Cash Flow Units hold the same portfolio and use the same option strategy as the regular units of each BMO fund. What changes is the payout. Each January, BMO sets the monthly distribution from the unit price at the end of the previous year and a target yearly rate, between 10% and 15% depending on the fund. Payouts are monthly and can include return of capital, which lowers your cost base. If the fund earns less than its target rate, the unit price can shrink over time, and if it earns more, the payout can grow the next year. There is no leverage. Some are hedged and others are unhedged, the same as their regular units.