Q: Hi, I have a goodly amount of my savings in HYLD for income, and now Hamilton has come out with SMAX. I like the idea of SMAX, as it is not leveraged, and only writes covered calls on 30% of it's holdings. I realize that it is brand new, SMAX, and not very big, but would you consider it to be a better choice down the road, as I am considering switching out of HYLD into SMAX in the future.
Thanks for your patience with these high yield covered call questions.
Thanks for your patience with these high yield covered call questions.
5i Research Answer:
It is tough to comment without a longer performance record, and right now the fund is less than $1M in assets. But as a 'strategy' and considering the market outlook, we think SMAX will do well. 'Better' is debatable, as the leverage will help HYLD in a good market. But we think SMAX may outperform if the market turns positive.