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Investment Q&A

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Harvest Premium Yield Treasury ETF (HPYT $8.86)
- $8.86 Cap: $230M
- View HPYT Profile
- View Questions on HPYT
Harvest Premium Yield 7-10 Year Treasury ETF (HPYM $10.76)
- $10.76 Cap: $50M
- View HPYM Profile
- View Questions on HPYM

Q: Similar etfs....20 yr vs 10 year. Why such a big difference in yield?

16% vs 8%

Asked by JACK on October 07, 2024

5i Research Answer:

Both ETFs appear quite similar but HPYT has a significantly longer dated porfolio. HPYT has a weighted maturity of 25 years vs HPYM at 8.3 years. HPYT also has a modified duration of 16.8 vs HPYM at 7.0. The longer maturity and higher duration of HPYT leads to it generating a higher yield paired with the use of covered calls.

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