HYLD: Hamilton Enhanced U.S. Covered Call ETF
HYLD: Hamilton Enhanced U.S. Covered Call ETF

HYLD: Hamilton Enhanced U.S. Covered Call ETF

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 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.

TickerNameWeight
SMAXHamilton U.S. Equity Yield Maximizer ETF65.6%
QMAXHamilton Technology Yield Maximizer ETF27.6%
LMAXHamilton Healthcare Yield Maximizer ETF12.4%
FMAXHamilton U.S. Financials Yield Maximizer ETF7.6%
AMAXHamilton Gold Producer Yield Maximizer ETF4.9%
EMAXHamilton Energy Yield Maximizer ETF3.9%
HBNDHamilton U.S. Bond Yield Maximizer ETF2.4%

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.

ManagerETFNameRiskInceptionMERAUMBetaP/EDividend YieldDistributions1Y3Y5Y10Y15Y
BlackRockXEQTiShares Core Equity ETF PortfolioMedium2019-08-070.20%$3,863,324,5060.9917.741.90%Quarterly22.07%8.67%N/AN/AN/A
BMOZWQTBMO Global Enhanced Income Fund Series ETFMedium2023-06-190.71%$10,310,000N/AN/AN/AMonthlyN/AN/AN/AN/AN/A
BromptonBMAXBrompton Enhanced Multi-Asset Income ETFMedium2022-10-182.85%$77,000,000N/AN/A9.10%Monthly22.84%N/AN/AN/AN/A
CICEQTCI Equity Asset Allocation ETF
Medium2023-05-17N/A$5,800,000N/AN/AN/AQuarterlyN/AN/AN/AN/AN/A
FidelityFEQTFidelity All-in-One Equity ETFMedium2022-01-250.43%$369,800,000N/AN/A1.17%Annually28.83%N/AN/AN/AN/A
Global XEQCCGlobal X All-Equity Asset Allocation Covered Call ETFMedium2024-05-28N/A$2,005,753N/AN/AN/AMonthlyN/AN/AN/AN/AN/A
HamiltonHYLDHamilton Enhanced U.S. Covered Call ETFMedium2022-02-072.40%$576,200,000N/A21.7811.51%Monthly20.96%N/AN/AN/AN/A
HarvestHDIFHarvest Diversified Monthly Income ETFMedium2022-02-112.37%$371,920,000N/A16.6710.42%Monthly17.80%N/AN/AN/AN/A
PurposePDIVPurpose Enhanced Dividend Fund ETFLow to Medium2013-02-200.78%$57,800,0000.5612.0712.28%Monthly7.52%3.84%6.34%4.86%N/A
TDTGEDTD Active Global Enhanced Dividend ETFMedium2019-05-030.72%$679,360,0001.1026.983.40%Monthly33.54%13.65%15.12%N/AN/A
VanguardVEQTVanguard All-Equity ETF PortfolioMedium2019-01-290.24%$4,290,000,0000.9617.411.71%Annually21.57%8.27%11.00%N/AN/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.

AdviceInvestCANInvestRESPInvestUSARetireCANRetireMGN
$500.00 CAD
$400.00 USD
$199.99 CAD
$99.99 CAD
$49.99 CAD
$17.99 CAD
$159.99 USD
$79.99 USD
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$99.99 CAD
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$12.99 USD