Investor Insights

This summary was created by AI, based on 2 opinions in the last 12 months.

The Hamilton U.S. Bond Yield Maximizer ETF (HBND-T) holds 17-year US treasury bills and employs an active call strategy for half the portfolio. It has hedged back to Canadian dollars, eliminating previous returns from owning US dollars. The ETF targets a 10%+ yield and writes call options on around 50% of its holdings. Its distribution yield can benefit from rising interest rates, but the price of the underlying bond holdings may decline. Overall, it is an interesting security to enhance one's yield from a bond ETF, but its performance this year has been down 7.7%.

Consensus
Mixed
Valuation
Fair Value
Similar
BND,VMBS
PARTIAL BUY
In a non-registered account

It holds 17-year US treasury bills, so changes in interest rates will have a major impact. It also has an active call strategy for half the ETF, so returns will vary given the options premiums. Is no leverage in this portfolio. Caveats: significant returns once came from owning US dollars, but this ETF has hedged this back to Canadian dollars so those returns are gone. The MER is a reasonable 0.45%. A complex ETF.

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

HBND targets a 10%+ yield and writes call options on around 50% of its holdings.
The ETFs distribution yield can benefit if interest rates or the expectation of interest rates rise, as not only the yield on the underlying bond holdings will increase along with interest rates, but a rising yield also means bond prices fall, which benefits the covered call portion of the ETF. But, this means that the price of the underlying bond holdings in the ETF could decline in value, and thus the unit price of the ETF.

If an investor feels that interest rates will continue to rise, then we think HBND can be beneficial in that scenario as the distribution yield and covered call feature will benefit, but the price of HBND will decline as bond prices fall. However, if rates stagnate or decline, this ETF may see some capital appreciation, but its yield can be negatively impacted. In other words, for an investor primarily seeking income, if rates continue to rise, this ETF can be attractive as its yield and covered call portion will benefit (but its unit price will decline). But if rates stagnate or decline, and for an investor seeking income, the yield on this ETF may come under pressure, but its unit price can see capital appreciation. Overall, it is an interesting security to enhance one's yield from a bond ETF. But, it is down 7.7% this year, so on a net basis hasn't really done much (yet) for investors. We think it is OK, but would like to of course see longer performance numbers. 
Unlock Premium - Try 5i Free

E.T.F.'s
Showing 1 to 2 of 2 entries
  • «
  • 1
  • »

Hamilton U.S. Bond Yield Maximizer ETF(HBND-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Hamilton U.S. Bond 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 U.S. Bond Yield Maximizer ETF(HBND-T) Frequently Asked Questions

What is Hamilton U.S. Bond Yield Maximizer ETF stock symbol?

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

Is Hamilton U.S. Bond Yield Maximizer ETF a buy or a sell?

In the last year, 2 stock analysts published opinions about HBND-T. 2 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 U.S. Bond Yield Maximizer ETF.

Is Hamilton U.S. Bond Yield Maximizer ETF a good investment or a top pick?

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

Why is Hamilton U.S. Bond 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 U.S. Bond Yield Maximizer ETF worth watching?

2 stock analysts on Stockchase covered Hamilton U.S. Bond Yield Maximizer ETF In the last year. It is a trending stock that is worth watching.

What is Hamilton U.S. Bond Yield Maximizer ETF stock price?

On 2024-12-03, Hamilton U.S. Bond Yield Maximizer ETF (HBND-T) stock closed at a price of $14.635.