Covered call ETFs bridging the gap between ETFs and structured strategies

Exchange-traded funds that buy call options on the underlying stocks are attracting big inflows in North America

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Covered call ETFs see big inflows

Exchange-traded funds (ETFs) that use options are surging in popularity in North America and bridging the gap between ETFs and structured products. Covered call ETFs use a covered call option strategy, also known as a buy-write strategy, which works by selling a call option at the same time as owning an equivalent number of shares of the underlying stock.

The BMO Covered Call Canadian Banks ETF, for instance, attracted $793 million in new assets in the first quarter of this year alone, according

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