Investment Q&A

Q: RE these 3 investment companies, which do you think is the best to invest in for high yield and modest growth: Harvest funds, Hamilton funds, Brompton funds. Thanks

Q: Hbnd has a yield of .88% though it pays distribution of .13 cents monthly.Why is that-they do this with several enhanced etfs

Q: Recently I asked a question on HBND. Could 5i give me a similar analysis on HPYT ? As well as comparison of the different structures between the two . The only one I am aware of is the 50% position of HBND that is not covered calls . Not sure what the situation is with HYPT ..... The yield on the two is considerably different with the former yielding 10% and the latter 15% ...... Please compare what you would suspect would happen differently with each under rising/stagnant/falling interest rates ?..... Thanks Garth

Q: hello 5i:
we're interested in starting a small position in HBND.
First, can you clarify something.
You said, in reply to a previous question: "But if rates stagnate or decline, and for an investor seeking income, the yield on this ETF may come under pressure, but its unit price can see capital appreciation. "
Are you saying here, that if (for example), the 10 year Treasury were to fall from 4.8ish to 2.4ish, that HBND would then yield around 5%? Along with a capital gain?

Second: would the decrease in HBNDs yield matter that much, as Treasuries and GICs, etc, would have a similar decrease in rates (a 1 year GIC paying around 2.5% vs a current rate of around 5%?

Third: isn't a stagnant yield almost ideal for a covered call bond, as nothing is changing, other than the seller continuing to collect the premiums from the sale of the covered calls?
thanks
Paul L

Q: With U.S. Treasury yields on the rise, is this a good time to buy this U.S Treasury focused ETF? Also, looking forward, and assuming a higher for longer scenario for interest rates, that are at a peak now, and will stay there for a couple of years, what would your outlook be for this ETF? Is the yield sustainable at a targeted 10%, or might it rise in the short term? Thanks. Will

Q: MY ERROR ! I asked the question ... "I have recently come across some US covered call ETF's offering +10% returns on ES Bonds. Sorry, don't have the ticker. They are on streaming platforms and flash by before I can write then down. Can you comment on the danger of such an investment, the stability of the dividend as interest rates are certain to shift. Thanks ! " BUT, I meant to type US (not ES). SORRY. Please deduct a few additional questions due to my typo.

Q: In your answer to my previous question on HBND you said that a 10% allocation would be good. Did you mean 10% of the whole portfolio or 10% of the bond portfolio (so example 10% of a30% bond allocation would be only 3%).

Q: Could I have 5i's analysis and recommendations on Hamilton's new ETF HBND ? A 10% yield on US treasuries seems like a pretty secure investment ...... Please assess versus other bond ETF's available on the market as the fixed income side of a portfolio ?.....And from a second point of view on whether it also might be a pretty safe place to park cash as well ? Can't really see a whole lot of volatility with US Treasuries but I know very little about the bond market .....