Q: I wonder whats happening with this? any ideas?
5i Research Answer:
HMAX is up 4.58% this year and 25.38% over a one-year period. Indicated yield is 13.77%. Its financial sector holdings bounce around, but are largely tied to interest rates and corporate earnings, which have generally been OK. HMAX uses 'at the money' call options to enhance income. This, plus dividends, and capital gains, allows it to pay high income. Note the distribution rate does vary, and has declined a bit since inception. Because of this option strategy, the ETF will likely lag the financial sector in a rally scenario.