ENBY only has $5M in assets, and is thus not recommended. It uses leverage and call options and only wns ENB shares. The leverage and the options enhance income (leverage also adds risks). The ETF primarily holds common shares of Enbridge, a major energy infrastructure company, while applying an active covered call strategy on up to 50% of the portfolio. This involves selling call options on ENB shares to collect premiums, which boost yield, alongside moderate leverage (up to 25-33% via cash borrowing) to amplify exposure. Covered calls provide tax-efficient distributions—often as capital gains or return of capital—paid monthly, targeting higher yields than ENB stock alone. Investors still capture some Enbridge price appreciation but may cap upside if shares surge past strike prices; leverage increases both potential returns and volatility.
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