Q: Hi Team, I'm a 65 yr old dividend investor and I have been investigating BMO Covered Call ETF (ZWT) and Hamilton's QMAX.
The only pure holding I have in Technology right now is DCBO (for growth) with <1% holding and I'm thinking of selling that and dumping into either of the above.
I'm really intrigued with QMAX yield of ~ 12% and MER of .65% compared to ZWT with a yield of ~3.57% and higher MER of .71%.
I understand that both could be very volatile (ZWT -30.9% in 2022 and up 64.5% in 2023). QMAX isn't a year old yet so no stats but I assume will be comparable?
Anyway, looking for your thoughts on which is better, is QMAX yield of 11.9% (too good to be true)? With QMAX, AUM of $374,505,060 some people like it? Thanks Bill
The only pure holding I have in Technology right now is DCBO (for growth) with <1% holding and I'm thinking of selling that and dumping into either of the above.
I'm really intrigued with QMAX yield of ~ 12% and MER of .65% compared to ZWT with a yield of ~3.57% and higher MER of .71%.
I understand that both could be very volatile (ZWT -30.9% in 2022 and up 64.5% in 2023). QMAX isn't a year old yet so no stats but I assume will be comparable?
Anyway, looking for your thoughts on which is better, is QMAX yield of 11.9% (too good to be true)? With QMAX, AUM of $374,505,060 some people like it? Thanks Bill
5i Research Answer:
The main difference is QMAX uses an 'in the money' call option strategy and ZWT uses an 'out of...