Q: Will this recover or should I sell? Harvest Premium Yield Treasury ETF (HPYT:CA)
Your view would be appreciated.
Your view would be appreciated.
5i Research Answer:
Unit value has declined, but with distributions not so much (about 5.9% over one year). Long dated US treasuries bounced around this year, and even with lower rates they declined in value as economic growth and inflation concerns remained strong, especially in the latter part of the year. The fund also pays a large portion of its dividend as return of capital which can lower NAV. If US interest rates move lower this fund should do better. We would be OK holding it now, but note it is a more aggressive fixed-income fund as long bonds are far more sensitive to interest rate movements.