The objective of our ETFs, HDIV and HYLD, is to provide “attractive monthly income”. To accomplish this, we aim to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively. Given the sector mix of the S&P/TSX 60 and the S&P 500 are highly complementary, and the two equity markets have related but different drivers, we believe there are benefits to holding a…
Commentary: HYLD
HDIV and HYLD – Performance Update; (Still) Working Well Together
In this insight, we provide an update on the performance of the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) and the Hamilton Enhanced U.S. Covered Call ETF (HYLD). While the objective of each ETF is to generate “attractive monthly income”, we hope each ETF will pay higher monthly income while generating similar and highly correlated returns to the large benchmark indices of Canada (for HDIV) and…
HDIV and HYLD – Working Together (as Shown in One Chart)
Before we talk about HDIV/HYLD, we wanted to highlight the launch of the Hamilton Canadian Financials Yield Maximizer ETF, or HMAX. This covered call ETF is ~75% Canadian banks and has an initial target yield of 13%+, paid monthly. This materially higher yield will be supported by an options coverage ratio of ~50% (higher than most covered call ETFs) and writing options at-the-money (versus out-of-the money).…
HDIV – Adding HMAX, Selling ZWB for Higher Yield and Lower Fees
Our overall goal for the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) and the Hamilton Enhanced U.S. Covered Call ETF (HYLD, HYLD.U) is to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively. As part of these two funds, we have modest cash leverage of 25%, the purpose of which is to help mitigate the yield/return trade-off inherent in covered call strategies,…
HYLD – Adding JEPQ, Selling TXF for Higher Yield, Added Diversification, Lower Fees
For HDIV and HYLD, we aim to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively. Investors in HYLD will recall we recently swapped HBF for JEPI (see HYLD – Adding JEPI, Selling HBF for Higher Yield, Added Diversification, Lower Fees for additional information). Today’s insight discusses our next meaningful adjustment to HYLD’s portfolio, and why we believe it will help better…
HDIV – Outperforms S&P/TSX 60 by 3.7% in 2022 (Adding to SI Outperformance)
The Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) outperformed the S&P/TSX 60 by 3.7% in 2022 (after fees)[1]. Since it was launched on July 19, 2021, HDIV has outperformed the large ‘low fee’ Canadian equity ETFs, like XIU, XIC, ZCN and VCN by over 700 bps (after fees), while paying out significantly higher distributions. As of year-end, HDIV had a yield of 9.68%, paid monthly and…
HDIV – Adding HFIN, Selling FLI to Increase Cdn Banks, Remove U.S. Lifecos, Significantly Reduce Fees
As investors in Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) and Hamilton Enhanced U.S. Covered Call ETF (HYLD, HYLD.U) know, we aim to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively by investing in various covered call strategies. Today’s insight discusses the recent changes to HDIV’s portfolio, and why we believe they will help better achieve HDIV’s investment objective of providing…
HYLD – Adding JEPI, Selling HBF for Higher Yield, Added Diversification, Lower Fees
As investors in HDIV and HYLD know, we aim to create higher income ETF versions of the S&P/TSX 60 and S&P 500, respectively by investing in various covered call strategies. Today’s insight discusses the recent changes to HYLD’s portfolio, and why we believe they will help better achieve HYLD’s investment objective of providing attractive monthly income and the opportunity for long-term capital appreciation. Adding JPMorgan Equity…
Questions and Answers on HDIV and HYLD/HYLD.U
1. What types of investors should consider the Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV) and the Hamilton Enhanced U.S. Covered Call ETF (HYLD and HYLD.U)? These two ETFs are designed for long-term investors seeking higher monthly income and sector diversification from Canadian equities (HDIV) and U.S. equity markets (HYLD and HYLD.U). These ETFs utilize modest 25% cash leverage to enhance yield and return potential. At…
Hamilton ETFs Launches Hamilton Enhanced U.S. Covered Call ETF
TORONTO, February 7, 2022 – Hamilton Capital Partners Inc. (“Hamilton ETFs“) is pleased to announce the launch of the Hamilton Enhanced U.S. Covered Call ETF (“HYLD“). HYLD seeks to replicate, to the extent reasonably possible and before the deduction of fees and expenses, a 1.25 times multiple of the Solactive U.S. Covered Call ETFs Index. HYLD has closed the offering of its initial CDN$ Hedged Units…