Hamilton Enhanced U.S. Covered Call ETF (HYLD) attempts to provide attractive monthly income and long‐term capital appreciation from a diversified, high-yield multi‐sector portfolio of primarily covered call ETFs, primarily focused on US equities. HYLD uses leverage to seek to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation. The maximum aggregate leverage will not exceed approximately 25% of its net asset value.
HYLD: Hamilton Enhanced U.S. Covered Call ETF
HYLD Top Holdings
HYLD is a fund of fund covered call solution with leverage that purchases multiple ETFs from their product shelf. Numerous funds have been sold and added in an attempt to reduce fees and the increase yield of this overpriced product. Unfortunately for investors, this means only holding proprietary products.
| Ticker | Name | Weight |
|---|---|---|
| SMAX | Hamilton U.S. Equity Yield Maximizer ETF | 65.6% |
| QMAX | Hamilton Technology Yield Maximizer ETF | 27.6% |
| LMAX | Hamilton Healthcare Yield Maximizer ETF | 12.4% |
| FMAX | Hamilton U.S. Financials Yield Maximizer ETF | 7.6% |
| AMAX | Hamilton Gold Producer Yield Maximizer ETF | 4.9% |
| EMAX | Hamilton Energy Yield Maximizer ETF | 3.9% |
| HBND | Hamilton U.S. Bond Yield Maximizer ETF | 2.4% |
HYLD ETF Review
Quickly compare HYLD to other investments focused on sector equities by fees, performance, yield, and other metrics to decide which ETF fits in your portfolio.
| Manager | ETF | Name | Risk | Inception | MER | AUM | Beta | P/E | Dividend Yield | Distributions | 1Y | 3Y | 5Y | 10Y | 15Y |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BlackRock | XEQT | iShares Core Equity ETF Portfolio | Medium | 2019-08-07 | 0.20% | $3,863,324,506 | 0.99 | 17.74 | 1.90% | Quarterly | 22.07% | 8.67% | N/A | N/A | N/A |
| BMO | ZWQT | BMO Global Enhanced Income Fund Series ETF | Medium | 2023-06-19 | 0.71% | $10,310,000 | N/A | N/A | N/A | Monthly | N/A | N/A | N/A | N/A | N/A |
| Brompton | BMAX | Brompton Enhanced Multi-Asset Income ETF | Medium | 2022-10-18 | 2.85% | $77,000,000 | N/A | N/A | 9.10% | Monthly | 22.84% | N/A | N/A | N/A | N/A |
| CI | CEQT | CI Equity Asset Allocation ETF | Medium | 2023-05-17 | N/A | $5,800,000 | N/A | N/A | N/A | Quarterly | N/A | N/A | N/A | N/A | N/A |
| Fidelity | FEQT | Fidelity All-in-One Equity ETF | Medium | 2022-01-25 | 0.43% | $369,800,000 | N/A | N/A | 1.17% | Annually | 28.83% | N/A | N/A | N/A | N/A |
| Global X | EQCC | Global X All-Equity Asset Allocation Covered Call ETF | Medium | 2024-05-28 | N/A | $2,005,753 | N/A | N/A | N/A | Monthly | N/A | N/A | N/A | N/A | N/A |
| Hamilton | HYLD | Hamilton Enhanced U.S. Covered Call ETF | Medium | 2022-02-07 | 2.40% | $576,200,000 | N/A | 21.78 | 11.51% | Monthly | 20.96% | N/A | N/A | N/A | N/A |
| Harvest | HDIF | Harvest Diversified Monthly Income ETF | Medium | 2022-02-11 | 2.37% | $371,920,000 | N/A | 16.67 | 10.42% | Monthly | 17.80% | N/A | N/A | N/A | N/A |
| Purpose | PDIV | Purpose Enhanced Dividend Fund ETF | Low to Medium | 2013-02-20 | 0.78% | $57,800,000 | 0.56 | 12.07 | 12.28% | Monthly | 7.52% | 3.84% | 6.34% | 4.86% | N/A |
| TD | TGED | TD Active Global Enhanced Dividend ETF | Medium | 2019-05-03 | 0.72% | $679,360,000 | 1.10 | 26.98 | 3.40% | Monthly | 33.54% | 13.65% | 15.12% | N/A | N/A |
| Vanguard | VEQT | Vanguard All-Equity ETF Portfolio | Medium | 2019-01-29 | 0.24% | $4,290,000,000 | 0.96 | 17.41 | 1.71% | Annually | 21.57% | 8.27% | 11.00% | N/A | N/A |
HYLD vs HDIV
HDIV is the better ETF. Both funds have monthly dividend distributions and medium risk. HDIV is the better performing and older ETF than HYLD which is more popular, less expensive and higher-yielding.
HYLD vs HMAX
HYLD is the better ETF. Both funds have monthly dividend distributions. HYLD is the better performing, more popular and less expensive ETF than HMAX which is higher-yielding.
HYLD vs VFV
VFV is the better ETF. Both funds have medium risk. VFV is the better performing, more popular and less expensive ETF than HYLD which is higher-yielding.
HYLD vs HDIF
HDIF is the better ETF. Both funds have monthly dividend distributions and medium risk. HDIF is the better performing, less expensive and older ETF than HYLD which is more popular and higher-yielding.
HYLD vs JEPI
JEPI is the better ETF. Both funds have monthly dividend distributions. JEPI is the better performing, more popular and less expensive ETF than HYLD which is higher-yielding.
HYLD vs QYLD
QYLD is the better ETF. Both funds have monthly dividend distributions. QYLD is the better performing, more popular and less expensive ETF than HYLD which is higher-yielding.
HYLD vs SCHD
SCHD is the better ETF. Both funds have monthly dividend distributions. SCHD is the better performing, more popular and less expensive ETF than HYLD which is higher-yielding.
Does HYLD Pay Monthly Dividends?
HYLD pays dividends monthly of $0.12 per share which are classified as distributions due to the income received from call writing. These include eligible dividends, capital gains, foreign income, and a return of capital component.
What is the Target Yield for HYLD?
The target yield of HYLD is 10.59% annualized. This is more than most ETFs, but yields are abnormally high due to covered call options to generate income.
How is HYLD Taxed in Canada?
Distributions have been taxed and paid by the underlying holdings as this is a Canadian listed ETF holding American companies. This fund is also unfortunately hedged to the Canadian dollar, further limiting performance.
Conclusion
Hamilton Enhanced U.S. Covered Call ETF (HYLD) is a fund of fund ETF with an extremely high MER of 2.08% and I highly recommend avoiding a covered call ETF in most portfolios. HYLD is an expensive fund that sacrifices total returns for yield that should solely be used for an income stream. This fund should not be purchased before retirement. Hamilton compares the product to VSP and S&P 500 hedged to Canadian investment when VFV is the more popular, better-performing Vanguard option.
