Investor Insights

This summary was created by AI, based on 4 opinions in the last 12 months.

The experts have varying opinions on UMAX-T ETF, with some highlighting its underperformance compared to the TSX Utility Index and limited capital appreciation potential due to the utility trade already taking place. However, others point out the potential for high yield and income generation through its option strategy. The underlying holdings in UMAX are seeing downward pressure on their share prices due to high debt levels and margin compression from high interest expenses, but there is optimism for a potential rebound with a decline in rates. The key difference between HMAX and UMAX is also highlighted, with the former focusing on blue-chip Canadian utilities and the latter involving underlying financials.

Consensus
Mixed
Valuation
Fair Value
Similar
XFOR-T, Xerox Holdings Corporation
WEAK BUY
Underperformed the TSX Utility Index over the last 3 months.

Leverage and covered calls to generate income. The utility trade has already happened with lowering interest rates, so further capital appreciation is limited. Know why you're owning it.

Less risk in ETFs, so you could pick some different sectors for a weighting of 10%.

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BUY

Hamilton ETFs has a whole series of sector-based, option strategy ETFs for enhanced income. He likes these ETFs, but it you are really bullish on the outlook, you want the underlying holdings and not the extra income necessarily. But if you want income, this is a great way to get it tax-efficiently, though you will give up long-term growth.

0
PARTIAL BUY
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

Most of the names in UMAX are seeing downward pressure on their share prices mostly due to high debt levels and margin compression from high interest expenses. With a decline in rates, we could see several of the underlying names in UMAX bouncing higher, and we feel that this could bode well for UMAX, however, it is a covered call ETF and so its unit price will not see as large of an increase as the underlying holdings would in the event of a rebound. For an investor seeking high yield and the potential for a recovery in share price, we think this name can do well if rates continue to decline, although, due to its covered call strategy, the unit price can continue to slide from here.
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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.

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Hamilton Utilities Yield Maximizer ETF(UMAX-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 3

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 3

Stockchase rating for Hamilton Utilities 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 Utilities Yield Maximizer ETF(UMAX-T) Frequently Asked Questions

What is Hamilton Utilities Yield Maximizer ETF stock symbol?

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

Is Hamilton Utilities Yield Maximizer ETF a buy or a sell?

In the last year, 3 stock analysts published opinions about UMAX-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Hamilton Utilities Yield Maximizer ETF.

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

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

Why is Hamilton Utilities 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 Utilities Yield Maximizer ETF worth watching?

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

What is Hamilton Utilities Yield Maximizer ETF stock price?

On 2024-11-21, Hamilton Utilities Yield Maximizer ETF (UMAX-T) stock closed at a price of $14.725.