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Hamilton Enhanced Canadian Covered Call ETF (HDIV $20.74)
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Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX $15.75)
Q: Could you confirm how one should look at the total return for funds that use leverage to enhance yield? For example, I am showing growth of 13.16% on my initial investment in HMAX and it has a current “yield” of 12.48% so does that mean in the one year I have owned it I am up 25.64%? For HDIV, the numbers are 18.86% share growth and a 9.99% yield for total return of 28.85%? In past discussions of these products it doesn’t seem that what you see is always what you get!
Appreciate your insight.
Paul F.
Appreciate your insight.
Paul F.
5i Research Answer:
Certainly we would look at TOTAL returns. Some enhanced ETFs will see price decay if they pay out more than they earn. HMAX has a one-year return of 22.08%, including dividends, as of today. HDIV 29.00%.