$UTES uses 25% leverage—but it still underperformed its own underlying stocks. Since launch, an equal-weight portfolio of $UTES ’s current holdings returned approximately 17.29% with dividends reinvested, versus only 12.11% for $UTES. Are covered calls, leverage, and high distributions actually helping—or creating more drag? Watch my full $UTES review on YouTube. https://youtu.be/sYNvNU0BOTQ
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20 Comments
Nicolas QR
@nicoqui · 25d
What allowed UTES to be a great payer was Telus 8%dividend. Now that they cut it and the stock is dowb bad utes no longer can yield the same.
Am @whatsa · 25dEdited
Great video as always. Appreciate your number crunching and math on the distribution., which I think will be cut as you have suggested. I have looked at this ETF several times over the past 24 months and cannot/could not get past the 31% (3 out of 10) stock allocation to Cdn telecoms. Their business model is broken, small market, gross mismanagement for years and value add only through cost cutting. Even with a distribution cut I am still not interested. I get my utility fix through CDAY and will probably leave it at that.
It's holding for next month's div payout but they have to do something soon. I sold 5000 shares and am holding the money to see where things go. This sideways motion of the market is intolerable.
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