Mike PhilbrickHamilton Canadian Financials Yield Maximizer ETFHMAX.TORISKYMay 27, 2026

ZWB is comprised of the 6 big banks. Typically writes out of the money calls -- gives you a bit of upside. If you feel that banks are overvalued, then the better position would be to write those calls "at" the money (get more premium, won't lose upside). He's less inclined to write at the money calls, as you may be getting your own capital back. Closely examine the calculation of your actual return.

HMAX has financials in general -- banks (76%), insurance (15%), asset managers (9%). Calls are at the money.

Canadian financials had a big move up, but doesn't like them now. HMAX is attractive for the coupon, but remember that the more volatile the market is, the worse this will do. This is good for current income and is tax efficient.

This a Canadian bank ETF along with Manulife, Great-West Life and Coastal Insurance. He is bullish on Canadian banks. They have been hitting all time highs and expanding multiples. As a group they have reported phenomenal results. Efficiency ratings have been very good and Return on Equity has expanded. Credit experiences have been good for Canadian banks.

Banks, insurance companies, and the like. Financials should do well if we get more robust growth. Writes covered calls. You are exposed to market risk. So he wouldn't define it as a "safe" way to earn the 13% yield, which itself is telling you something.

Important point that yield does not equal total return. 70% exposure to the big 6 banks with an option overlay. Covered calls work best in sideways to slightly up/slightly down markets. Sacrifices upside. Up 23% over last 12 months, including dividends. 

But what was the cost of writing those options? ZEB, BMO's equal weight bank ETF, is up 33%. That's 10% upside given away because of the way call-writing works (get income today, but give away upside).

Not really for growth-focused investors, more for income investors. One strategy would be to hold some of this, but blend it with an ETF that doesn't write calls.

He's bullish the Canadian banks. HMAX would complement the caller's covered call strategy.

Pays a high yield, perhaps too high. Covered call, so generate high income, but less upside.

From Hamilton, a good company. But you have to take a close look at where the yield is coming from. If it's an outsized yield, there might be something going on. If it's from covered calls, he's all in favour. But there could be leverage, which he never uses.

Caught a lot of attention from DIY investors who are sorting by yield. Has amongst the highest yields ever seen, ~14-15%. When you see a double-digit yield, ask where it's coming from. Here, it's through very aggressive covered call writing. Gives you high yield today, but very little growth going forward; a tradeoff. Looking at total return over the long term, almost always underperform ETFs that don't use covered calls.

Best way to use this one is in concert with other forms of investment that will participate in a market rise, such as ZEB.

Portfolio of the 6 big banks. Really high distribution, with a covered call strategy on the full 100% of the portfolio. Covered calls cap the upside to get income; they work in sideways markets or those slightly up or slightly down. Consider pairing this with ZEB.

It is fine for financials and provides a little insulation. He wouldn't go any higher than 10% on a single ETF in a sector.

They do a good job. It carries a basket of financials and does not use leverage. To generate their 14% yield, they write the options right at the money. So you get no or little upside in the stock itself.

The base is around $14.50 an is making higher highs and higher lows. It's okay as long as the chart doesn't take out the last low.

Both hold financials,but ZWB uses covered calls. HMAX has performed a little better and offers a little more yield. ZWB writes only half the securities, so it takes in less yield, but gets more upside capture. The price return is 11% on ZWB in the past year vs. HMAX's 6%, but the total return is close. However, ZWB pays you you more of a yield. nearly 7%, but gives less growth.