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Global X
About 2% of the 12.4% yield is recurring income; the rest is capital gains or return of capital. Too new to show a capital trend.
Payout over time
Fund health
This fund sells call options on its holdings in exchange for the cash it distributes. The return split below shows how much of this fund's own return came from price versus distributions; the full comparison against its plain twin RING.TO is further down this page.
Why the price moved
This fund has under 3 years of its own price history, so the 3-year price comparison against RING.TO is not shown yet. The comparison over the available window is further down this page.
Own payout record
Cash distributed per unit, by calendar year, from the fund's own distribution history (up to the last 6 years). "Reduced" marks a year where the cash paid per unit fell more than 5% versus the prior year.
How it's taxed
The CRA taxes each distribution dollar by its character. These shares are measured against the full taxable distribution, including any portion the fund reinvested as units rather than paying in cash.
| Character | % of taxable | $ / unit |
|---|---|---|
| Eligible dividends | 2% | $0.0290 |
| Capital gains | 56% | $0.9002 |
| Return of capital | 42% | $0.6707 |
For a covered-call or leveraged fund, return of capital can include option premium or realized gains classified as ROC for tax purposes, not your capital handed back. It still lowers your cost base, so the deferred tax can increase a later capital gain or reduce a later capital loss when you sell. If return of capital keeps building up and your cost base reaches zero, any further return of capital is taxed as a capital gain in the year you receive it, not deferred to a sale.
Fund vs plain twin
RING.TO is a comparable plain-vanilla fund in the same space, without the options or leverage overlay.
| Last 12 months | RNCC.TO Global X Equal Weight Canadian Telecommunications Covered Call ETF | RING.TO Global X Equal Weight Canadian Telecommunications Index ETF |
|---|---|---|
| Distribution yield | 12.4% | 5.9% |
| Total return (1y) | -11.1% | -10.1% |
| Capital growth (1y) | -20.7% | -15.0% |
| Growth of $100, reinvested | $89 | $90 |
| Growth of $100, not reinvested | $79 | $85 |
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Next steps
Prices as of 2026-07-27. Distributions as of 2026-07-28. Tax character year 2025.
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Based on Global X's 2025 T3 / tax-factor filing. Character can vary year to year. This is not tax advice; consult a tax professional about your situation.
What you keep, in your account
Each figure below starts from the headline yield of 12.4% and shows an estimate of what you keep after tax. Where you hold the fund changes the answer: a TFSA shelters Canadian tax and can still lose foreign withholding tax when the fund has foreign withholding, a non-registered account taxes each character at its own rate, and an RRSP defers tax until you withdraw.
These figures are estimates at the top ON marginal tax rate, not your personal rate. The return-of-capital portion is not taxed now: it lowers your cost base, so more of your eventual sale is taxed as a capital gain instead.
Illustrative, not tax advice.
RNCC.TO paid about 6.5pp more distribution yield (trailing 12 months), but RING.TO earned +1.0pp more in total return over the last 12 months. Covered-call funds sell call options on their holdings, which can limit how much upside they keep in exchange for the cash they distribute.
Trailing 12-month cash yield; 3-year annualized total and price return. Past performance is not indicative of future results.