Q: Similar etfs....20 yr vs 10 year. Why such a big difference in yield?
16% vs 8%
16% vs 8%
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.