Q: Good day, 5i. I am looking for your opinion of Hamilton Technology
Yield Maximizer ETF. Thank you.
Yield Maximizer ETF. Thank you.
5i Research Answer:
QMAX targets a yield of 13%+ via monthly distributions and provides exposure to the largest tech companies in the US. It uses an active covered call strategy, and does not use leverage. It uses at-the-money call options. It does not use leverage. It writes options on 30% of its holdings. The fund has an MER of 0.65% and an AUM of $12.8M. For an investor looking for monthly income, as well as some exposure to US tech names, while giving up some potential for capital appreciation, we think this fund looks OK, although it does have a small AUM currently.
** EDIT: QMAX uses at-the-money covered calls and not out-of-the-money covered calls.