Q: Maybe the Globe's listings are simply inaccurate. But it shows HTA as doing much less poorly than HTAE, which basically only invested in HTA and has a higher monthly dividend. The G&M shows HTA is up 33% ytd but HTAE is up almost 44%. I get that HTAE can have various strategies, including leverage - though it's odd that it seems as stable than HTA. What do you think of this ETF and its risk factors? Esp as compares with HTA.
5i Research Answer:
Our data shows HTA at 38.48% and HTAE at 48.64%. That's about what we would expect with 'up to' 33% leverage in a rising market. In terms of stability, because of HTAE's short history we are not so sure we would make assumptions yet on stability. In a down market things would likely be quite different, with leverage amplying fear and losses. Beta right now shows HTAE 1.35 and HTA 1.14, so mathematically HTAE is more volatile. Fees are high at 0.99%, but if investors are looking for enhanced yield and leverage we do not have big concerns on HTAE, as long as investors know what they are buying. It has 24 securities so is decently diversified, and we are very comfortable with the current securities shown as owned.