Q: Hbnd has a yield of .88% though it pays distribution of .13 cents monthly.Why is that-they do this with several enhanced etfs
5i Research Answer:
HBND is a very new ETF. It has only paid one distribution so far of 13c. Some sites, when calculating yield, will look at total distributions paid and divide by price. So, $0.13 divided by $14.73 gets 0.88%. Other sites will multiply 13c x 12 to get an estimated annual yield, which is 10.59%. Once the fund has had one year of history these differences in sites will balance out.