Investment Q&A

 All of the listed funds have a management fee of 0.65% and utilize a covered call strategy to maximize distributions. Indicated distribution yields are as follows: HMAX 13.3%, UMAX 13.8%, QMAX 12.5%, and SMAX 11.5%. HMAX has been around for the longest while the other funds are much newer and smaller, so performance data is limited, and outlook is more speculative. SMAX/QMAX are quite new and growing so we would like to see more performance numbers over time. We like HMAX the best here as we believe that Canadian banks will be a good play in the future, along with paying a high distribution. We are comfortable with all their 'strategies' of enhanced yield, though keep in mind in a market rally they still might lag straight equity ETFs as fund positions get called away. But for investors specifically looking for enhanced income, we think they can be a useful tool in a portfolio. Specific performance will vary depending on sector volatilty and returns (i.e. QMAX is tied to the tech sector).