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Global X S&P 500 Covered Call ETF (XYLD)
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Hamilton Utilities YIELD MAXIMIZER TM ETF (UMAX)
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Hamilton U.S. Bond YIELD MAXIMIZER TM ETF (HBND)
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Harvest Premium Yield Treasury ETF (HPYT)
However I am not well versed on bonds . Could you explain the differences between the two ETF's ? I have noticed that they peaked in mid September and declined since. HPYT has declined by 10.65% and HBND by 12.66% ..... What market conditions account for the price action between September and now ? I have no idea what bond durations are or what the significance of a " long " bond is but I am curious why HBND has had the bigger decline of the two ? ..... If HPYT is the less volatile of the two I'm inclined to go for the juicier dividend ..... Please explain the differences between the two ETF's and what circumstances will effect one over the other ? ..... I'm inclined to make my bond ETF purchases now and my stock ETF purchases after the tariff announcements . Would you endorse this strategy ?
Also UMAX isn't really a utility ETF . It is Communication Services 23.2%, Pipelines 22.0%, Industrials 23.6%, and, Utilities 31.2% ..... Is this something I should consider ? Or do you still put it in a defensive category with a minimum of volatility potential ? ......{ I like the juicy 14% dividend but unsure how 5i evaluates it in a Trump tariff world } ..... Thanks for your terrific service ......
HBND and HPYT both own longer dated US treasuries. HBND uses 'at the money' call options for 50% of its portfolio. HPYT uses 100% of its portfolio to write calls, and can use out-of-the-money options. Since September, concern on inflation has resulted in a weaker long term bond market, with investors fearing interest rates won't fall, and could even rise. Long term bonds have the most sensitivity to rates. With HPYT using 100% of its fund with call options, it potentially will fall less if rates rise as it brings in more income. Duration is really just average maturity of the portfolio. With an ETF strategy we would not try to time things. Tariffs have been in the news now for months. We might not expect a big reaction next week. UMAX has a Beta of 0.53, meaning it is far less volatile than the market. We would be comfortable buying it.