Q: Hi Peter and Team,
The last question referencing HBIG was on April 16, 2024. Please provide your current assessment. Thanks as always for your insight.
The last question referencing HBIG was on April 16, 2024. Please provide your current assessment. Thanks as always for your insight.
5i Research Answer:
HBIG still has a small AUM after nearly one year of launching ($3.0M AUM). It is up 9.6% since launching, which is a decent return, although this underperformed the broader TSX market in that timeframe (albeit with less volatility). We think the concept is interesting, but there are a lot of layers that complicate the intended outcome of this ETF (exposure to a 60/40 portfolio, which is inherently attempting to diversify risk, but then also a covered call layer to enhance income). We would prefer to stay sidelined from this name for now.