Q: Of these two etfs HYLD and HHIS how safe is the capital and which one would you prefer. Also would they be better for a RRSP, TFSA or NON REGISTERED account
5i Research Answer:
HYLD is a fund of funds where HHIS holds a handful of securities and utilizes a covered call strategy. We would view HYLD as safer between the two. Given the covered call income component for both of these and US exposure, an RRSP likely makes the most sense from a tax/account perspective. However, as some of the income will be designated as return of capital it could be argued that a non-reg account is better, depending on one's tax rate.