Q: This ETF ( a mix of single stock covered call etfs + modest leverage + reasonable fees) , seems to shows an impressive performance since its share issuance last year ,would you consider it as a core long term holding ?
5i Research Answer:
HHIC is up 11.62% year to date. Yield is 14.75% so there will be some asset decay as income is paid out. We think it is decent enough, but it is a very concentrated fund (only 13 holdings). With this and leverage, we would expect high volatility. It is really too early to judge performance. We think for higher risk income seekers it would be fine, but we would not yet put it into the "core" category.