Investor Insights

This summary was created by AI, based on 8 opinions in the last 12 months.

Experts have varying opinions on the Hamilton Canadian Financials Yield Maximizer ETF. Some believe it offers a higher yield and better performance compared to similar products, while others point out the potential risks and volatility associated with the fund. The use of covered call options is seen as a way to enhance income, but there are concerns about sustainability and potential declines in market corrections. Overall, the fund is regarded as aggressive and suitable for investors who understand covered call funds and want enhanced income, but caution is advised due to the tradeoffs involved.

Consensus
Mixed
Valuation
Fair Value
Similar
ZWB, ZWU
BUY
ZWU vs. HMAX

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. 

E.T.F.'s
PARTIAL BUY

Good. Has a covered call overlay, holding financial services including lifecos, with an options strategy. It may have a little leverage, and a little more volatility but also a little more of a return. That said, if you're bullish on the underlying space, own the individual names for the long term. If you're short term or seek higher yields, then these products will generate higher, tax-efficient income, but will underperform long term. A rule of thumb.

E.T.F.'s
DON'T BUY
HMAX vs. ZWU -- benefit from lower interest rates?

ZWU is far more interest-rate sensitive, as it focuses on utility companies. Generally as interest rates fall, utilities do better. HMAX is financial services, insurance, lifecos. Falling rates not necessarily good for them, because they're more sensitive to interest rate cuts for a slowing economy with prospects of a harder landing.

So, if rates are coming down due to an economic slowdown (as he believes), then ZWU will probably outperform HMAX in the short run.

E.T.F.'s
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

HMAX uses 'at the money' call options to enhance income. This, plus dividends, and capital gains, allows it to pay high income. Note the distribution rate does vary, and has declined a bit since inception. The fund could lag in a sector rally, and will still likely decline in a market correction. It is also entirely exposed to the financial sector. But for investors who understand covered call funds, and want enhanced income, we would be fine owning it. 
Unlock Premium - Try 5i Free

E.T.F.'s
RISKY

Combination of underlying of stock dividends, and volatility of call strategy. Good product, but would recommend a portion of portfolio. Don't rely on the yield only - need to understand the product fundamentals. ~15% seems unsustainable. 

E.T.F.'s
COMMENT

He'd have to look at it, but generally for such a high yield, you have to give something to get something. What are you giving up? Often leverage is used, which adds risk. Covered call strategies can usually work in a sideways market, which is what the banks appear to be in.

The high yield is often not sustainable. But he would need to analyze it further to give a solid opinion.

E.T.F.'s
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
Showing 1 to 12 of 12 entries
  • «
  • 1
  • »

Hamilton Canadian Financials Yield Maximizer ETF(HMAX-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 5

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 6

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, 6 stock analysts published opinions about HMAX-T. 5 analysts recommended to BUY the stock. 1 analyst 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?

6 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 2024-12-04, Hamilton Canadian Financials Yield Maximizer ETF (HMAX-T) stock closed at a price of $14.86.