Hamilton Canadian Financials Yield Maximizer ETF (HMAX) is designed for attractive monthly income while providing exposure to a market cap-weighted portfolio of Canadian financial services corporations. To reduce volatility and augment dividend income, HMAX will employ an active covered call strategy and does not use leverage. HMAX is designed to provide higher monthly income from Canada’s 10 largest financial services companies while employing an active covered call strategy.
- Exposure to Canada’s largest banks and financials with approximately a 75% weight in the ‘Big-6’ banks
- Active covered call strategy to enhance monthly income and reduce volatility
- About 50% of at-the-money calls are used to generate higher income
Top 10 HMAX Holdings
The top 10 investments of HMAX account for 100% of the total holdings.
| Ticker | Name | Weight |
| RY | Royal Bank of Canada | 22.6% |
| TD | Toronto-Dominion Bank | 17.6% |
| BN | Brookfield Corp | 11.2% |
| BMO | Bank of Montreal | 10.8% |
| BNS | The Bank of Nova Scotia | 9.7% |
| CM | Canadian Imperial Bank of Commerce | 7.3% |
| MFC | Manulife Financial Corporation | 7.1% |
| SLF | Sun Life Financial | 5.1% |
| IFC | Intact Financial | 4.9% |
| GWO | Great-West Lifeco | 4.7% |
HMAX ETF Review
Quickly compare and contrast HMAX to other investments focused on Canadian equities by fees, performance, yield, and other metrics to decide which ETF fits in your portfolio.
| Manager | ETF | Inception | MER | AUM | Holdings | Beta | P/E | Yield | Distributions | 1Y | 3Y | 5Y | 10Y | 15Y |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
 | QIF | 2018-02-12 | 0.45% | $204,100,000 | 91 | 0.97 | 16.18 | 4.13% | Monthly | -0.96% | 6.51% | 4.43% | N/A | N/A |
 | CEW | 2008-02-06 | 0.61% | $196,988,229 | 10 | 0.98 | 10.07 | 4.04% | Monthly | 6.87% | 10.25% | 10.44% | 9.36% | 13.51% |
 | ZWB | 2011-01-28 | 0.71% | $3,015,750,000 | 38 | 0.96 | N/A | 7.58% | Monthly | 0.07% | 5.17% | 5.67% | 7.02% | N/A |
 | TLF | 2011-05-20 | 0.96% | $113,000,000 | 26 | 1.57 | 40.20 | 5.22% | Monthly | 44.07% | 12.55% | 20.29% | N/A | N/A |
 | CIC | 2010-08-18 | 0.82% | $193,210,000 | 7 | 0.94 | 10.13 | 7.36% | Quarterly | 0.28% | 5.76% | 6.11% | 7.19% | N/A |
 | CCLN | 2021-11-16 | 0.38% | $1,242,562 | 38 | N/A | 12.61 | N/A | Annually | -40.77% | N/A | N/A | N/A | N/A |
 | DXF | 2017-09-22 | 0.85% | $9,590,000 | 30 | 1.30 | N/A | 2.10% | Quarterly | 7.47% | 7.02% | 10.68% | N/A | N/A |
 | BANK | 2022-02-01 | 1.70% | $131,926,000 | 10 | N/A | 8.88 | 14.64% | Monthly | 5.08% | N/A | N/A | N/A | N/A |
 | FINN | 2023-05-19 | 1.13% | $142,300,000 | 76 | N/A | N/A | N/A | Annually | N/A | N/A | N/A | N/A | N/A |
 | FHQ | 2014-10-29 | 0.78% | $24,344,578 | 97 | 1.23 | 28.78 | N/A | Annually | 33.06% | 7.16% | 17.91% | N/A | N/A |
 | FINO | 2021-02-01 | 0.92% | $28,060,000 | 94 | 1.44 | 56.00 | N/A | Annually | 38.00% | N/A | N/A | N/A | N/A |
 | BKCL | 2023-07-05 | N/A | $68,951,438 | 1* | N/A | N/A | N/A | Monthly | N/A | N/A | N/A | N/A | N/A |
 | HMAX | 2023-01-20 | 0.71% | $686,600,000 | 20 | N/A | 8.57 | 15.52% | Monthly | 0.65% | N/A | N/A | N/A | N/A |
 | HTA.B | 2020-02-27 | 0.98% | $548,750,000 | 24 | 1.34 | 33.59 | 7.50% | Monthly | 48.37% | 17.61% | N/A | N/A | N/A |
 | INAI | 2024-01-18 | N/A | $69,016,638 | 50 | N/A | N/A | N/A | Quarterly | N/A | N/A | N/A | N/A | N/A |
 | MWMN | 2017-12-04 | 0.61% | $10,492,600 | 376 | 1.00 | N/A | 3.72% | Annually | 11.28% | 5.72% | 8.63% | N/A | N/A |
 | NREA | 2019-01-15 | 1.04% | N/A | 98 | 0.90 | 11.41 | 4.68% | Monthly | -0.48% | 5.78% | N/A | N/A | N/A |
 | PHR | 2014-04-29 | 0.80% | $23,100,000 | 51 | 0.91 | 9.36 | 4.52% | Monthly | -4.70% | 3.80% | 3.44% | N/A | N/A |
 | RTEC | 2023-03-08 | 1.02% | $1,560,000 | 86 | N/A | N/A | N/A | Annually | N/A | N/A | N/A | N/A | N/A |
 | TEC | 2019-05-07 | 0.39% | $2,017,270,000 | 247 | 1.46 | 40.66 | 0.20% | Quarterly | 44.70% | 10.59% | N/A | N/A | N/A |
HMAX vs HDIV
HDIV is the better performing, older and more diversified ETF than HMAX which is less expensive, more popular and higher-yielding. Both funds have monthly dividend distributions.
HMAX vs HCAL
HCAL is the better performing, older ETF than HMAX which is less expensive, more popular, higher-yielding. Both funds have monthly dividend distributions.
HMAX vs ZWB
HMAX is the better performing, more popular and less expensive ETF than ZWB which is higher-yielding. Both funds have monthly dividend distributions and similar diversification.
HMAX vs UMAX
HMAX is the better performing, less expensive, more popular and higher-yielding ETF than UMAX which is more diversified. Both funds have monthly dividend distributions.
HMAX vs BKCL
HMAX is the better performing, less expensive, more popular, more diversified and higher-yielding ETF than BKCL which uses leverage. Both funds have monthly dividend distributions.
HMAX vs BANK
BANK is the better performing ETF than HMAX which is less expensive, more popular and higher-yielding. Both funds have monthly dividend distributions and similar diversification.
Is HMAX a Good Investment?
HMAX is a rated a SELL and should be avoided by investors or sold if already purchased based on this research analysis.
How Often Does HMAX Pay Dividends?
HMAX distributions are disbursed every month either in cash or, if the investor has opted for a dividend reinvestment plan (DRIP), reinvested into additional units of the ETF. HMAX has a target yield of +13%, more than most ETFs. Yields are abnormally high due to covered call options to generate income and help offset volatility.
Conclusion
Hamilton Canadian Financials Yield Maximizer ETF (HMAX.TO) is an income investment to gain exposure to Canadian financial equities. HMAX is a convenient way to invest in stocks with a covered call strategy but will underperform many other similar ETFs.
