Daniel Straus HAP Enhanced Income Equity ETF HEX-T COMMENT May 16, 2018

Covered call strategy. Capital distribution could be larger than dividend. Diversified and covered call so he likes that kind of fund.

TSX 60 covered call overlay. Monthly distributions. In a sideways to down market you will outperform XIU-T, for example. You could trade these two off each other. For the next 3-5 months Canada will underperform the world markets.

He is not exactly sure what they are doing in this. Assumes it is a covered call fund and they are selling Covered Calls against a basket of equities that likely matchup with the TSX 60. His issue is that their prospectus basically says they are going to write covered calls against all of the stocks, all of the positions. If so, this puts the manager into an impossible position. If the stock rises, you are losing it. If it declines, you are writing a Call on a lower price, and you are never going to be able to get back to where you were. When you have a basket of stocks, you are compounding the effect.

This is a covered call strategy. He likes covered calls and has no problem in dealing with this one. Thinks it has a lot of bank stocks which he likes.

Basically a TSX based ETF. 17% energy weighted. It is really a question of whether you think it is time to be stepping back into the Canadian market. There is an argument for it, but he would want to wait a few days to see what shakes out. These are pretty critical times right now.

Basically 30% Banks, 20% energy, 10% utilities, etc. They have a whole bunch of stocks they do covered calls on. You are getting a good 5%-5.25% yield. It is all capital gains and dividends, not income.

He likes this. A little more diversified than some of the Bank of Montréal (BMO-T) products, which are primarily the banks.

It is a covered call ETF that is actively managed. It holds a basket of stocks. It is into typically Canadian exposure. It is difficult to judge whether it is going to outperform. It has a high yield (just over 5.2%). If you want this then it is a good investment.

(A Top Pick July 11/17 - Up 0.6%) Basically it is a covered call on the TSX. He likes the product, but it is the Canadian market that he is not so thrilled about.