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Stockchase Opinions

Larry Berman CFA, CMT, CTAHamilton Enhanced Multi-Sector Covered Call ETF HDIV.TOBUYSep 20, 2021

In option strategy, it is all about the path that is taken. If it is a sharp decline, then covered calls will give you no protection. Hard to say without knowing which path it takes. Likes HDIV with its prudent use of leverage.
$16.10

Stock price when the opinion was issued

$23.75

As of Jun 19, 2026. Market Open.

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

He avoids anything with leverage for his older clients.

PARTIAL BUY
It uses some leverage and owns covered call writing ETF's of other providers so is diversified across covered call writers. Since it adds extra value it is worth the higher fees, but the yield cannot be entirely counted on. It is OK as a part of your portfolio.
DON'T BUY
HDIV vs. HDIF HDIV will give you back part of the yield in the way of return of capital. The MER is a little high at 2.09%. So, will you get that much excess return. HDIF is shorter in its time frame. He can't decide which is better.
COMMENT
Not sure on his preference between the two. Part of HDIV's yield is ROC through covered calls. Management expense rate is a little high at 2.09. HDIF has equal weight gold, utilities, brand leaders, health leaders, etc. They are ETF's for income.
DON'T BUY
Problem is that Hamilton uses about 25% leverage. As a matter of principle, his contracts state that he doesn't use leverage of any kind. So he can't use Hamilton. But that's not an issue for everyone. The other issue is that Hamilton uses other ETFs within their ETFs, so you're paying double the fees of around 150 bps, and that's way too high for an ETF.
COMMENT
Quality operators for investment strategies. No issues with the ETF. This is perfect for adding diversification to your portfolio.