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Hamilton U.S. Bond YIELD MAXIMIZER TM ETF (HBND $12.39)
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Harvest Premium Yield Treasury ETF (HPYT $8.24)
Q: I've noticed 5i has had some rather negative comments on HBND { yield 11.8% } lately . Is HPYT { yield 18.25% } essentially the same product ? ..... And does 5i hold the same negative views toward it ? .... What effect on unit price would the end of the war have ? Thanks for your terrific service ......
5i Research Answer:
HBND has performed poorly, but because of its long term bond focus, not due to anything "wrong" in terms of its management. HPYT also focuses on long term bonds so our comments would be similar. Even though yield is 16.12%, its one-year total return is -1.30% due to asset value decay as it is paying out more than it earns. If the war ends then inflation and rate fears should subside, and this would be generally positive for the sector. Note though in other conflicts oil and shipping have stayed problematic for a period even after the conflict ended.