Cole KachurHamilton Canadian Financials Yield Maximizer ETFHMAX.TORISKYJul 21, 2023

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.

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.

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.

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%).

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