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Purpose High Interest Savings Fund (PSA)
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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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Dynamic Active Enhanced Yield Covered Options ETF (DXQ)
Q: I hold psa in my tfsa for cash purposes. I am looking at moving proceeds to either hdiv or Dxq for cash holdings. Would you please compare these 2 etfs and would you recommend one over the other for stated purpose. Thanx.
5i Research Answer:
Both HDIV and DXQ are covered call ETFs. HDIV has a yield of 12.4% and uses 25% leverage, whereas DXQ has a yield of 6.2% and does not use leverage. HDIV holds a basket of ETFs, including Canadian Financials ETF (HFIN), Tech yield maximize ETF (QMAX), and others, whereas DXQ holds individual US stocks such as AMZN, META, UBER, etc.
DXQ has slightly outperformed HDIV since inception, including distributions. Overall, for an investor seeking a higher yield, we would prefer HDIV, although, for a more balanced approach we would prefer DXQ.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in PSA.