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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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Hamilton Enhanced U.S. Covered Call ETF (HYLD.U)
Q: In a normal world I would keep both of these for diversification purposes. But this isn't a normal world. It's a Trump world and Feb.1 is an ominous date to me . I have a 3% position in HDIV and a 3.5% position in HYLD.U . I am re-balancing for Trumpification purposes generally { individual Trump vulnerable Canadian stocks are being sold and cash is being raised . Likely somewhere around 20%-25% cash when I am done } } and will likely increase HYLD.U to around 9-10% when finished . Would you endorse selling my HDIV and using the funds to increase HYLD.U ? Selling one to buy the other will bring my HYLD.U to somewhere around 6.5 % before I decide whether or not to go as high as 10% . The decision on the increase from 6.5% to 10% will be made after I see just exactly what he has planned ..... The question really is whether you would endorse a move away from Canada in the short term with these two ETF's ? At least until the smoke clears ? Thanks for your terrific service ......Garth ......
5i Research Answer:
If the goal is to be 'wary' of Canada and focus on the US, then a shift to HDIV to HYLD.U makes sense to us. We would note that HDIV is up 2.4% since the election, not including dividends, so it has fared at least OK with all the uncertainty. We would continue to favour the US overall, not necessary because of Tariffs but because of the current economic differences. If tariffs are implemented, the the economic difference between Canada and the US will likely become even more pronounced.