Q: Hello,
Can I please get your view on Hamilton U S Bond Yield Maximizer ETF Class E (HBND). Thank you!
Dave
Can I please get your view on Hamilton U S Bond Yield Maximizer ETF Class E (HBND). Thank you!
Dave
5i Research Answer:
HBND owns long term US treasury bonds, and sells call options on them to enhance income. It has $198M in assets, fees are 0.65%, indicated yield 10.58%, one year return 2.61%. Performance has so far been disappointing, with asset decay offsetting a lot of yield. BUT...if interest rates do decline in the US performance should improve. Still, since launch it has disappointed investors. We would be OK holding this for another few quarters, as the rate curve is expected to improve.