The ETF Tango: One Fund Delivers the Heat, the Other Misses the Mark

Our head-to-head analysis reveals which covered call ETF is worth the dance

TL;DR – Which Covered Call ETF Deserves a Spot in Your Portfolio?

• Not all covered call ETFs are created equal—some prioritize high yields, while others balance income with long-term growth.

• We break down three key factors that separate the winners from the laggards: yield, NAV growth, and upside/downside participation.

• Two of Canada’s biggest income ETFs—BMO and RBC—go head-to-head in our analysis.

• The results may surprise you—one ETF delivers stronger long-term potential than the other.

👉 Read on to find out which fund truly deserves your investment.

---

We Put Two Top Income ETFs Head-to-Head—Here’s the Clear Winner

Which Covered Call ETF Should You Bet On?

Income investors love the idea of getting paid while they wait. But not all covered call ETFs are created equal. Some offer sky-high yields at the expense of long-term performance, while others strike a balance between income and growth.

Today, we’re putting two brand-name contenders in the ring: BMO Canadian High Dividend Covered Call ETF (ZWC) and RBC Canadian Dividend Covered Call ETF (RCDC). By the time you finish reading, you’ll know which one is better for your portfolio and how to evaluate these funds like a pro.

---

How to Evaluate Covered Call ETFs (Without the Marketing Hype)

Not all income ETFs tell the whole story. While a juicy yield might catch your eye, there are three critical factors to analyze before you commit:

1. Yield: How much income does the fund generate?

2. NAV Growth: Is the net asset value (NAV) holding steady or growing, or is it eroding over time?

3. Upside & Downside Participation: How much growth potential does the fund give up in exchange for that income? And what does this tell us about the fund invests?

These metrics separate the true winners from ETFs that just look good on paper. But there is also one hidden factor you can’t miss.