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iShares U.S. High Yield Bond Index ETF (CAD-Hedged) (XHY)
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Hamilton U.S. Bond YIELD MAXIMIZER TM ETF (HBND)
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Harvest Premium Yield Treasury ETF (HPYT)
Q: I have xhy.ca in my unregistered account and am down about 20%. Does it make sense to sell this and buy HPYT or HBND or are these totally different products?
5i Research Answer:
Though the all own US bonds, they are very different. HPYT sells call options on 100% of its portfolio. HBND on 50%. This strategy enhances income but will limit or cap gains in a bond market rally vs XHY. Considering the prospects for lower rates, we would be comfortable keeping XHY unless one specifically wants to have enhanced income and is willing to give up more potential gains to achieve that.
Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.