Q: I would like to get your opinion on BMAX. It's only been in existence sine August 2022, but the returns, including dividends, have been excellant. Dividends are approx 10% and it's diversified geographically in the US, Europe and Canada. Is this a growth or income or both ETF.
Wayne
Wayne
5i Research Answer:
Assets are $102M. Yield 10.02%; One year performance +12.18%. It owns units in other Brompton funds, covered call and preferred funds. It is marketed as growth & income, but we would consider it primarily income. It is invested 55% in the US, 21% Canada, and largely Europe for the rest. It is well-diversified but does have 23% exposure to financials. We would consider it decent. It is doing what it intended, but its short history makes it difficult to predict how it may do in a different market environment. Expect that much of the return will be in the form of return of capital.