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  5. ETSX: What are your thoughts about these etfs . [Evolve S&P/TSX 60 Enhanced Yield Fund]
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Investment Q&A

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Q: What are your thoughts about these etfs .
Asked by robert on May 22, 2025
5i Research Answer:

ETSX is a TSX60 fund that writes call options on 33% of its portfolio. Thus yield is high at 10.67% (will include some return of capital component). It is up 16.24% over one year but does not have a longer history. Fees are 0.60%. We are fully comfortable with the strategy and it has performed as expected. We would consider it as having more potential in a good market than funds who sell options on a larger portion of assets. We are comfortable with its holdings. 

HDIV: We are comfortable with HDIV for enhanced income, but it does use 25% leverage. This enhances returns but also potential losses. Assets are $668M and fees are higher here. One year return is 14.86%. Indicated yield 11.88%. We would be fine with it for more aggressive investors who want a bit of leverage and enhanced income.