Investor Insights

This summary was created by AI, based on 6 opinions in the last 12 months.

The Hamilton Canadian Financials Yield Maximizer ETF (HMAX-T) is a unique offering in the market, with a focus on high yield through covered calls and dividends. Experts have differing opinions on the risk and potential return of the ETF, with some highlighting the aggressive nature of its high yield strategy and others expressing caution about its performance compared to traditional financials ETFs. The underlying exposure to Canadian financial companies and the use of covered calls set this ETF apart, but also bring certain risks and tradeoffs. Overall, the ETF provides an opportunity for high yield, but with some potential downsides to consider.

Consensus
Mixed
Valuation
Fair Value
Similar
XDIV, XDIV-T
WATCH
HMAX vs. UMAX

Key difference is UMAX is focused on blue-chip, Canadian utilities. Reduces volatility by writing an options strategy. If you think we're going to be entering a more tumultuous period, utilities tend to do better.

HMAX is a similar setup, but with underlying financials. 75% exposure to the big 6 banks, which have struggled. Argument that banks' exposure to real estate makes them more economically sensitive. In a good economic environment, banks will do better.

Neither uses leverage. When the yields get juicy, remember that some of that's return of capital. Also remember that covered writing can be a drag if the market is anything but flat, slightly up, or slightly down.

E.T.F.'s
RISKY

Aggressive. Delivers very high yield because strike prices are written "at the money". Tradeoff is you won't get price appreciation if stocks go up. Use extreme caution. A way to achieve yield targets that you can't get by other means.

E.T.F.'s
DON'T BUY

Uses covered calls, but also highly dependent on capital appreciation and that brings risk. Otherwise, there's no way to achieve the yield of 14-15% via covered calls + dividends. At the end of the day, it's about total return, not just income. A new offering, whose total return is worse than that of a regular financials ETF. He'd prefer a more conservative covered call strategy.

E.T.F.'s
HOLD

Diversified exposure to 10 largest financial companies.
Covered/call strategy that generates yield.
No leverage within product.
Unique covered call strategy: at the money option (50%). 
Remaining portfolio uncovered (50%). 
Low MER (.73%).

E.T.F.'s
RISKY

Yield focused ETF.
Used to investors looking to generate income.
11-12% yield is risky.
Better to look at safer Canadian banks.

E.T.F.'s
DON'T BUY

Covers top financial companies in Canada.
No leverage, with 15% distribution annually.
Not sure how dividend is sustainable.
Has under-performed financials index.



E.T.F.'s
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Hamilton Canadian Financials Yield Maximizer ETF(HMAX-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 1

Bearish - Sell Signals / Votes : 2

Total Signals / Votes : 5

Stockchase rating for Hamilton Canadian Financials Yield Maximizer ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Hamilton Canadian Financials Yield Maximizer ETF(HMAX-T) Frequently Asked Questions

What is Hamilton Canadian Financials Yield Maximizer ETF stock symbol?

Hamilton Canadian Financials Yield Maximizer ETF is a Canadian stock, trading under the symbol HMAX-T on the Toronto Stock Exchange (HMAX-CT). It is usually referred to as TSX:HMAX or HMAX-T

Is Hamilton Canadian Financials Yield Maximizer ETF a buy or a sell?

In the last year, 5 stock analysts published opinions about HMAX-T. 2 analysts recommended to BUY the stock. 2 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hamilton Canadian Financials Yield Maximizer ETF.

Is Hamilton Canadian Financials Yield Maximizer ETF a good investment or a top pick?

Hamilton Canadian Financials Yield Maximizer ETF was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Hamilton Canadian Financials Yield Maximizer ETF.

Why is Hamilton Canadian Financials Yield Maximizer ETF stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Hamilton Canadian Financials Yield Maximizer ETF worth watching?

5 stock analysts on Stockchase covered Hamilton Canadian Financials Yield Maximizer ETF In the last year. It is a trending stock that is worth watching.

What is Hamilton Canadian Financials Yield Maximizer ETF stock price?

On 2024-02-29, Hamilton Canadian Financials Yield Maximizer ETF (HMAX-T) stock closed at a price of $13.76.