If you’re looking for a top exchange-traded fund (ETF) to hold in your portfolio and which can give you some solid dividend income along with low risk, then the BMO Europe High Dividend Covered Call ETF (TSX:ZWP) could make for a great option. With a yield of around 7.5%, it can give investors some excellent recurring dividend income.

It also uses covered calls, which can help it generate additional income and reduce some of the overall risk in the ETF. And for investors who are looking for exposure outside of North America, it allows you to benefit from the rising value of many top European stocks. The fund carries with it a management expense ratio of around 0.7%, which is fair but there are cheaper options out there for investors. But given the diversification and covered call strategy, it may be justifiable.

The ETF does provide you with some exposure to top European businesses. The top holdings in the ETF include Unilever (NYSE:UL), Sanofi (NASDAQ:SNY), and Novo Nordisk (NYSE:NVO). And with no investment accounting for even 5% of the fund’s total weight, investors aren’t overly exposed to any one company. Among the countries and regions represented in the ETF include Switzerland, France, Germany, the United Kingdom, and many others.

Year to date, the ETF has generated modest returns of just 2%. But when including the dividend, the fund’s total returns sit at around 8%. If you value dividend income and want some diversification, this is an ETF you should consider adding to your portfolio.