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Hamilton Canadian Financials YIELD MAXIMIZER TM ETF (HMAX)
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX)
Q: Do these products match the yields they advertise ? What would the expected result to the etf price and yield in the environment of rate cuts in the new year.
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5i Research Answer:
Both have very short operating histories so we can't promise yields will be maintained. Peformance will depend on markets and volatility. Options premiums rise with volatility. UMAX marginally decreased its dividend in November (17.5c to 17.25c) and it will fluctuate. But the strategy should be able to maintain higher-than-average yields. HMAX decreased its dividend from 18c to 17.75c in September, and then again to 17.45c in November. In a period of rate cuts we would not expect much change overall. Options income would likely be maintained, and the underlying securities should perform. Note these funds will underperform in a market rally (still likely will do well but less well than straight equity ETFs).