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  5. BANK: Good morning Sorry for the error in my previous question for income purposes what would be your choice between Hmax and Bank (evolve) and why . [Evolve Canadian Banks and Lifecos Enhanced Yield Index Fund]
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Q: Good morning
Sorry for the error in my previous question for income purposes what would be your choice between Hmax and Bank (evolve) and why .
thanks in advance Georges
Asked by georges on December 20, 2024
5i Research Answer:

BANK uses 1.25X leverage and sells call options on 33% of its portfolio. HMAX uses 'at the money' options on up to 50% of its portfolio. BANK has higher returns and a higher indicated yield, but this is due to its leverage, primarily. We would side with BANK if and only if one is comfortable with leverage. Leverage work both ways and can result in higher losses at times. 

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