Investment Q&A

Q: Just noticed that management fee of HDIV is 0.65, but MER is 2.39. Management fee for HMAX and UMAX is 0.65, but MERs are unstated presumably because it's early days. Do you expect that the MERs of HMAX and UMAX will be over 2%?

Q: In my quest to find the perfect ETF I'm looking at HMAX , 14.74% dividend paid monthly. Safe Canadian financials, I ask you what's wrong with it?

Q: In ref. to TK's question July 10 I am curious why you would suggest ZWB over HMAX for an income-based portfolio? I looked hard at both, for the same reason as TK, and chose HMAX. Just counterchecking my decision. Thanks, James

Q: Are there reasons for me not to hold a 15% weighting of this very high paying Eft in my riff account if I am only interested in yield? Thanks! James

Q: A retired colleague in his early 80s is selling his income properties and wishing to invest the proceeds in a manner that will produce solid income with little risk. He is taken with HMAX and its 13% plus dividend. What are your thoughts on HMAX given his circumstances? What is the maximum percentage of his portfolio might you suggest he invest in HMAX? And what other Canadian or US ETFs with would you suggest he consider given his age/need for income? Thank you.

Q: Doing a little research with Google I found that the TSX has had an average annual return of 7.94% over the 50 year period of 1971 to 2021 . { Please confirm or correct that number ? } I know 5I doesn't " like " to give portfolio weightings but I have in the past seen you comfortable up to 15% for some ETF's . Would HMAX be one of them ? It looks to me like I can have my cake and eat it too as it's dividend is superior to that of the average annual return of the TSX . Not quite, but close to double ......

Also I have always wondered just how much difference in performance { percentage } there would be between these three products { ZEB. ZWB out of the money calls, and HMAX in the money calls } . In the case of a 10% correction in the financial sector and also in the case of a 10% rise in the financials. Please speculate on what you would expect the return percentage for each . { you will have to speculate for HMAX because of its short history and supposed lack of volatility due to the use of in the money calls } This will help me grasp what to add or subtract to that 14% dividend for HMAX under the two scenarios ......

Q: Can you give me the risk level of investing in either of these 2 financial products? Should the yields scare me or is this an opportunity? Looking to put in my income portfolio.

TY.

Q: Dear 5i team.

There have been a few questions lately on HMAX vs ZWB and all the responses thus far discuss the upside potential and difference in strategy. What are the downside risks of these two aproaches to their covered call strategies? Has the recent volitility in Banks given us any insights into this part of the question, or are we still in speculate on outcomes mode. If the latter, please provide some educated speculation on impact of continued downward draft in Bank equity prices.

Thanks for your insights.

Arthur.

Q: How do these two ETF's compare?

Q: WOW a 14 % yield ! Too good to be true ?
Good/ bad points of this product and should this
ETF play any role in a RRIF. Thanks. Derek

Q: Thank you for your reply this morning on my question about ZWB and HMAX . In your reply you indicated a preference for ZWB because of the upside potential being greater . Am I right in assuming that if that is the case HMAX would be the less volatile of the two ?

Also in 2018 I asked 5I to crunch the numbers on the big five banks over the 18 years { 2000 to 2018 }... I would assume that is a long enough segment to determine an average annual return of dividend plus capital gain. The answer I got ranged between 11% on the low end { TD } to 14.3% on the high end { RY }...... Please correct my reasoning but to me it looks like HMAX with its' current 15.1% dividend based on today's cost of the ETF is going to slightly beat those numbers annually, have less volatility, and give me diversification as an added bonus ? ..... Please advise if my reasoning is sound .....Thanks Garth .....

Q: My TD Waterhouse account shows ZWB { yielding 8.2% } and HMAX { yielding 15.1% } . Could you please confirm both yield numbers at today's ETF prices ? And why one might buy the lower yielding ETF considering that HMAX has nearly double the yield and a little more diversified { 75% banks } ? ...... { I'm not concerned about the short history of HMAX } ..... Hypothetically, if it were " you " and you wanted a covered call financial ETF which one would you pick and why ? { Of if there is another one you would prefer over both }

Q: I realize George was asking about HMAX's return of capital, and you are probably pretty close, as HDIV is about 20% in my account, and HYLD is about 50% in my account, just for information's sake.

Q: Roughly how much would be return of your own capital ?

Q: Is there any other reason this would go down other than the holdings values?
Would there tend to be some percentage of disconnect.

Q: With tough market and mounting losses to me 13% return looks very atractive at cost of much rise in the bank stocks(perhaps) can this stock return be good and perhaps sleep at night?
Which other stocks can we expect similar return in your opinion,I am trying to be high risk adverse having burnt since intrest rate rising.

Q: what your opinions on HMAX from hamilton etfs

Q: Too good to be true alert: Can HMAX consistently deliver a 13% return using call options? This is near triple the yield on some of the big six bank stocks. It's hard to believe that a 13% return can be consistently delivered. Doesn't seem real. What might the downside be to owning this vehicle? Thank you!

Q: Hi Team, my entire portfolio is in stocks(no ETF's) but i am intrigued by HMAX. I am thinking of replacing my two bank holdings (RBC,TD) with HMAX.
Is this basic understanding correct: If Canadian bank share prices decline HMAX unit price will do slightly better than bank index. In a steady share price enviornment for the banks HMAX will be about the same as the bank index. If the banks rise significantly HMAX will go up but will lag the index. All the while HMAX will yield approx. 13% while the individual banks will pay 4-5%.
My current view on the banks is cautious (hold) and I do not want to abadon the sector as it is such a significant part of the TSX and long-term they do well.
A 13% return with minimal volatility (arguably less volatility than holding an individual bank) seems pretty good for the banking allocation of a portfolio. Am I missing something?

Q: Can you please provide your views on hmax?