18.97% annualized return since inception. A 10%+ yield. Amazing... It even beat the TSX 60, it’s benchmark!!! 🤯 So why did my analysis find that $HDIV UNDERPERFORMED a more comparable benchmark by 1.9% PER YEAR? That’s because HDIV isn’t really comparable to an unleveraged TSX 60 total return index. It has 1.25X leverage, significant concentration, much more tech exposure, US exposure, and a completely different portfolio construction.... And once I accounted for that, the “KING” narrative got a lot more complicated and well... you’ll see. I went under the hood on EVERYTHING is could in less than 20 minutes, from the 1.75% current cost, covered calls, leverage, distributions, ROC, total number of underlying stocks (and even the effective number of stocks), risk, drawdowns, and all the changes HDIV has made since launch (you will be SHOCKED by that one)! I also tried to answer as many of your HDIV questions as possible…. If I missed YOUR question, put it in the comments of the YouTube video pretty please. I’ll answer it there so everyone can benefit from the answer. Here it is!!! https://youtu.be/AWVSiutDV_M
3,188 views
48 Comments
Dee @blossom8573 · 14h
Just more fearmongering nonsense. Just like the "NAV erosion" myth. I held covered call etfs through covid and the 2022 downturn and all my navs are way up.
Robert Guay
@stuckincalgary · 16h
Pretty sweet return. Some people are never satisfied.
Leon Li
@leonsmoneyflow · 4h
*Commenting here because my YT comment keeps disappearing Some good info, thanks for taking the time to make this. There are some things I want to point out since I too want to give us much data as I can to help people make informed decisions. At 13:18 you said it writes ATM calls on up to 100% of the port for all 8 cc etfs which is technically true but a bit misleading too for 2 reasons. First, it says in the same sentence that it's "generally ATM or slightly OTM call options, at its discretion (buy the portfolio advisor)" - this is important to note because they are actively adjusting the write levels. In the prospectus, they need to say more just in case situations change but in an article about HMAX they said they achieve the yield by writing near 50% of the portfolio (https://hamiltonetfs.com/hdiv-adding-hmax-selling-zwb-for-higher-yield-and-lower-fees/). Second, you forgot/left out the fact that HDIV has some holdings with no covered calls (HFIN and HUTS) and CDAY + QDAY have a max write level of 20% because it only writes options on the leveraged portion of it's holdings. Another thing, while theoretically a leveraged portfolio/benchmark as you shown beats HDIV, the leverage is not free and institutions get borrowing rates way cheaper than us. You showed us a 1.9% beat annualized over almost 5 years, where can you borrow money to invest for under 1.9%? Let me know if you have, I will be really interested ;) Also the leverage is not managed by you, investors don't need to set it up and then worry about adjusting to avoid margin calls.
Twenty-five And Invested
@25andinvested · 16h
Lol going hard on the click bait. I love it
See the full comment section 👀Sign up for the full Blossom experience!
