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  5. HBND: Delete the last question; Harvest shows a truncated version - as though it has just been issued. [Hamilton U.S. Bond YIELD MAXIMIZER TM ETF]
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Q: Delete the last question; Harvest shows a truncated version - as though it has just been issued. The profile is very similar to that of HPYT so the new question is should these funds do well and what is the difference between them?
Asked by Mike on May 13, 2025
5i Research Answer:

The main difference is that HPYT sells options on 100% of its treasury portfolio and HBND sells on 50%. This results in a higher yield on HPYT, but it will lag somewhat in a big bond rally. These funds should perform decently, with option premium always coming in and interest set (eventually) to decline. Note there will be some NAV decay, so the total return will be less than the indicated yield in most years.