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Hamilton U.S. Bond YIELD MAXIMIZER TM ETF (HBND $12.95)
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Harvest Premium Yield Treasury ETF (HPYT $8.88)
I tried going through recent Q+A to make sense of these two ETFs.
Can you simplify for me?
1) What are the key differences of these two? The yappear to have similar holdings, just diff %.
2) Closing in on one year since inception, any more visibility to performance/cost etc?
3) Can both be held, or do you prefer one over the other?
Many thanks for your help.
HPYT and HBND are both covered call ETFs on longer-dated US treasury bonds, but there are some key differences in their approaches.
1) HBND is CAD-hedged, whereas, HPYT offers both hedged and non-hedged options. HBND only writes options on 50% of its holdings and specifies that it uses at-the-money options, which offer a higher premium than out-of-the-money options. HPYT writes on 100% of its holdings.
2) Both have the same MER. HPYT has a larger AUM at $459M vs. HBND at $136M. HBND has slightly outperformed since its inception
3) Due to its higher liquidity and better performance, we would give HBND the slight edge today. Although, given the slight differences in strategies, there can be merit in holding both, but largely we would prefer HBND today.