skip to content
  1. Home
  2. >
  3. Questions
  4. >
  5. UTES: Hello, what is your opinion of UTES? [Evolve Canadian Utilities Enhanced Yield Index Fund]
You can view 2 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Hello, what is your opinion of UTES? I understand it is fairly new, maybecnot now, but later this year, could it be something to consider for a higher level of income? Thanks
Asked by Martin on March 20, 2025
5i Research Answer:

UTES has garnered $95M in assets since September. Fees are 0.85%, and it is up 7.10% YTD. Indicated yield is 17.47%. Note much of the distribution will be return of capital and/or capital gains. It uses 1.25X leverage, which we think is fine considering the sector (utilities) but does add risk in a downturn as well. Call options and leverage result in the higher yield. We would be fine owning this for investors looking for income and who understand covered call funds and are comfortable with some leverage.