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  5. HBND: According to the T3 published on the CDS listing for 2023, the Return of Capital for 2023 for HBND was 70. [Hamilton U.S. Bond Yield Maximizer ETF]
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Q: According to the T3 published on the CDS listing for 2023, the Return of Capital for 2023 for HBND was 70.7% and for HPYT it was 48%. I'm holding them in non taxable accounts so the source of the dividends doesn't matter, but isn't that level of ROC completely unsustainable and will just mean an erosion in the NAV?
thanks
Asked by John on February 29, 2024
5i Research Answer:

Generally, ROC does result in a slow decay of NAV. But in the case of these two ETFs, they are so new that we would not extrapolate here. Each was started in 2023 and neither has a full year of operations/tax info to go on yet. Tax breakdown could be different going forward. 

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