I’m retiring this year, and part of my income will be from those types of ETFs. I own HYLD, HDIV, HTAE, ARCC, and a few closed end funds and split share corps to ensure regular dividend payments. The rest of my portfolio are T, Enb, FTS, BN, BAM, DIVO, TD, XEI and ZSP. A mix of high yield and growth, allowing me to retire at 55 😊
@@thinkpassiv I chose to diversify between ETFs, stocks, sectors, so hopefully it will not be hit as hard during recession and still benefit when the market is going up. Only time will tell… 🤷♀️
I have almost all the dividend stocks you have except Enb and divo. I have 7 years to retire. I really like your portfolio but I don’t have any cover calls etfs as I think those are more for people looking for income for their retirement. Do you have those before or after you retired ?
Hi Brandon, thank you for the detail video. One of the key question is capital preservation. It makes no sense to have a high yield only to end up with less capital at the end of the investment period. This is the problem with QYLD who has high yield but continue to have high erosion of the capital. I look forward to your thoughts.
Capital preservation, you need to look at total return = capital investment plus monthly returns. Qyld has been talked about on hundreds of videos. Qyld does go up when the overall market goes up, does it not? Like many of these all in one etfs their stock price has a lag relative to individual stocks. For those who wish Tk purchase growth stocks all the power to you, that approach only works if you get lucky and can time selling at the peak stock price and purchase when the price is very low. Good luck timing that. Purchasing these all in one etfs means you can sleep at night and who cares if the market is up one day or down the next. Pay me my monthly dividend, hard to beat that strategy especially as you approach retirement years, nothing better in my mind.
Problem is that if the CC ETF share price crashes, it might not ever recover because it gives up it's upside. It's not even good for 80 year olds because they want to at least give a full inheritance.
Hi Moz...YES you can hold HYLD in both RRSP and your TFSA. Not factoring the tax mitigation or saving (RRSP) I would MAX OUT your TFSA since there is ZERO taxation.
@@mozmagic the only way to avoid the 15% withholding tax on dividends is to directly hold a U.S. listed stock or ETF. An example would be VOO. if you hold this in your RSP no withholding tax. But, if you hold VFV (which only invests in VOO) the withholding tax applies, even if you hold it in your RSP. The VFV distribution is net of the withholding tax.
The 1.2% mgt fee including underlying etf mgt fees that Brandon point out is very crucial. I was wondering the same watching along the video. Good job and thank you Brandon for pointing it out as it will make a big factor in understanding the true cost of this type of ETF of ETFs.
8:10 it turns out, in HYLD’s case, diversification did not help to prevent the significant distribution cut this past Friday. HYLD still owns ETFs that hold blue chip companies but that also did not save the distribution from being cut. There is some risk to these CC ETFs and investors should be sure to properly assess the total return of the underlying ETFs and the Hamilton ETFs themselves.
Proven to underperform on the long run considering total return. Mainly because of fees... And because you give up part of the upside...Why not have a similar basket of blue chip stocks in an index ETF ( VGG for ex ) and pay yourself while rebalancing quarterly. At least you are the one who decides how much you need, so you don't have to pay taxes on distribution from the high yield ETF, and then reinvest loosing the compounding of part of your return. These products cost a lot for the promise off taking out a fixed return/capital ( part of it being NAV reduction through ROC !!! )
I've held a few of those high yielding ETFs including HYLD, HDIV, HDIF and a few split funds for over a year now. Last year my portfolio was up 8.2%. I don't know any of my friends in the market and quite a few retirees that are all in the red last year. I only own two small cap dividend paying single stocks (DIV & SRV.UN) and the rest are all high yielding ETFs and split funds. ps - most of them are in my TFSA so I don't pay any taxes either 😄💰💵
@@henryhonda8408 I am retired and went all cash end of 2021. I will re enter the market this in a few months. I did use some of those ETFs to generate income in my taxable account. They covered my yearly expenses, and offer some protection in down market. Although NAV price for HYLD ( - 23% ), HDIV ( -13% ) and HDIF ( -20% ) were hit hard in 2022, you have to care as they are income funds if they are a small part of your portfolio. So, they are useful as a niche product, I like them for what they offer! My point was that OVER THE LONG TERM, aka for investors in accumulation phase or retired folks who don't need part of their income, total return is way more important than yields. Pay yourself instead of tour financial institution with low fee index funds, especially for TFSA, RRSP and personally owned management company. Best Bogle's advice for the retail investor.
When you receive the monthly distributions, can those be automatically reinvested on a DRIP or does it have to be reinvested manually for these two ETFs?
Hi Marc, as a older person nearing retirement myself, I am always interested in strategies that encompass tax strategies and best draw-down solutions. I would also welcome content that might include moving to other countries like the UK and the tax implications if you take up residency. Passive income strategies and other strategies particularly aimed at retirees. Maybe also some articles aimed at retirees who want to travel ie: best places to consider, travel and medical insurance tips, etc. I hope these ideas may provide food for thought
Thanks Brandon........ these are best ETFs I've ever owned. I've dollar cost averaged HYLD since I owned it and my average cost is now the same as the NAV. The huge dividends are all extra, profit or whatever you want to call it. LOVE em!!
Hey Brandon, do u know how the management fees are being paid to hamilton... the 1.20% average...? If i have no more available money to trade into my tfsa trade account. Do Hamilton takes the money from my holdings, or is it from the dividends or elsewhere. I need clarification on it if you can please. Thanks so much in advance.
They actually just take it from the gain/return of the fund. So like Brandon was saying, for HDIV (15:15 of the video), the return since inception was 6.71%. In reality, the fund gained about 7.91%, but then when you subtract the 1.20% fee, it becomes 6.71%. To answer your question, if you have no more money available in your TFSA, that doesn't matter in respect to the 1.20% fee. You won't really notice that they collect their fee because they take it from the returns of the fund.
We are ALWAYS biased with views, presentations, opinions, etc., sponsored or not. Sponsorship often brings us more information than we would've had otherwise and we should be astute enough to follow the paths of the information we're given, not dismiss - in this case - a video because of sponsorship. To take that view of sponsorship is itself a bias.
Capital erosion will probably happen with these types of funds I think over the long run, still you will get you dividends/income. I personally own both of these etf and also some individual stocks, although I sold most of these now. Im down 25% on microsoft and indeed stuck with that stock now for over 1.5 year (unless I want to lose 25% of my capital by selling it) This thing gets me barely 1% dividend, and is unfortunately a huge part of my rrsp. I ask, if in 15 years my Hyld is down by 50%, do you think I will still receive my dividend of 10+ % every month? I think yes. The way to see this type of investing is you really are getting yourself a that you build over time. Better forget that capital in most cases, i fear. Just act as if its gone. But your monthly distributions keep going, and going, and going...
Will the monthly distribution guaranteed going on and on at the same 10%+ to compensate for the capital loss? Unfortunately, the distribution is not guaranteed
Personally think there's a massive difference between MSFT and this ETF. Over the long run, capital erosion will be inevitable with HYLD/QYLD, whereas Microsoft (Windows, Office365, Azure etc.) will only continue to grow over time.
Great comment couldn’t agree with you more. Clearly you have a solid understanding on the strategy around these etfs. I will say this, these etfs are not all eroding. They’ve come a long way in the past 10 years.
I get the total returns thing...but would like it a bit skewed towards income, which can then be turned into more shares that generate income...the unrealised gains are not actually working for me....not until I sell them.
Four things working against me as a Canadian investor... 1. Weak currency 2. Higher ETF fees 3. Higher MER 4. Smaller market. These factors make me want to expatriate. The only advantage I can think of being a resident of Canada is tax-free TFSA. But since I am low-income senior with only modest savings, even that is not significant. Add the higher cost of living and residency in Canada is looking less desirable. Please do a video on for whom it makes financial sense to leave Canada.
In my opinion these would be great options if you have a non-registered account and want to reduce the amount of taxes you are to pay. With the dividend tax credit you will still fair better than getting fully taxed and not quite as low as capital gains... but you get the point. If you want to invest for the long term index funds that charge much lower fees would be better. I would also look at the prospectus for these funds since they charge trailing fees which eat up your profits. Blackrock, BMO and Vanguard have much better options with lower management fees. You should stick with funds that charge less than 1% in management fees and these funds charge more than that.
I have had c/c etf's for many years now and I have made a lot of money from them. I don't think I would ever have 100% in c/c but the monthly income is exciting to see come in!
Hey Brandon, I'm newish investor and am currently using a managed portfolio with wealthsimple it wants decent enough dividends but also has to pay a bit in fees. Would it be worth to switch to my own unmanaged profile to avoid fees? Thanks!
I entered - HYLD - Jan 12th - At $12.24 / unit and that’s approximately a 30% fall from the time of inception or 52wk high - hopefully the cost I paid should hold through the rough patches ahead... but like you say - nothing is guaranteed - but thank you for your excellent presentation
He Brandon, Good informative video like always. Just one thing about ht e costs . If you look at the ETF facts, it clearly mentions the real costs. They end up being 2.35%. Still if the performance is good, nobody cares, just on the lows it will bite back hard.
I'm curious/concerned why Hamilton hasn't release their 2022 TAX info on their website. It's basically Feb. now and they haven't updated, making it hard for investors to do their tax. Plus, since they have a bunch of new EFTs in the past 2 years...how has the tax worked out for these funds.
They have until Feb 28th for most documents , March 31st for anything to do with trusts and partnerships . Guaranteed it will be within days of that deadline
There are a lot of video about hamilton etf but not much information about Hamilton Capital Partners itself. Could you share some finanical information/statement about the company itself, please?
RRSP foreign amount limit still the same? Edit: The February 23, 2005 budget eliminated the foreign content limit completely for RRSPs and RRIFs, for 2005 and later years. If desired, RRSPs can now consist of 100% foreign content.
Great video....what if I put all 100k of my funds into HYLD HDIF HDIV & HMAX? Diversified enough? I currently have half of my funds in VFV...but am considering going all in from growth to PII...
Take a chart from HYLD, since inception. See if your complete total return is up. Including principle balance. Also think if it’s not, and you are down x amount of percent, and you need to withdraw from the fund, you will be looking at taking a loss. Please do your homework, and don’t be one that got hauled out behind the woodshed with one of these funds
what about covered calls missing out on the upside? The market is down and I hear covered calls do better in that situation...when things get better in a year or two, will these covered calls perform less well vs the underlying stocks?
Agreed. Between the two of these gentlemen, I have learned so much. Only minor complaint is that they jump around one the screen so much but still the best out there.
Hey Brandon, excellent video as usual! They paid out 79 cents in 'foreign tax witheld'. Does this mean that this etf isn't very tax efficient if held in a non-registered account?
Great video. I have QYLD in my portfolio now and have been disappointed with its market value continuing to decrease. Once the dividend payout equals market value reduction (my break-even point), I will likely sell QYLD. I will be looking into HDIV.
Do the math. Waiting for the break even doesn't always make sense. Moving your qyld to another fund may improve your yield which is what matters in the end. As long as the fund you are moving to has the same outlook of following the market back up. Just a different vehicle I guess you could say. With higher yield.
@@TheJDShow I can't disagree with that approach. I'm still going to wait since I am only a month out from breaking even, and the QYLD price is actually going up.
I buy shares/etfs/reits with my bank and am currently making aprox $1000 + in my TSFA monthly. The average dividend is about 13% monthly. HYLD is a recent buy for me and will buy more as the months go on. Most of my stocks offer drips.
Good stuff, I'm thinking of investing in HYLD for US exposure. Even though Hamilton is a Canadian Company, is the 15% US holdback applied if it's held in a Non Registered account?
These are great for retirement accounts, where leverage is not allowed. the modest boost of 25% leverage can enhance your returns (and losses) a bit. I also did not notice if tax treatment was mentioned- most of the dividends are capital gains, which is taxed at a beneficial rate in a cash account
After so many US financial influencers who promoted FTX and now that we know what happened with that whole thing, I'm find myself being hesitant to watch videos like this that are sponsored by the company and a very new fund. Its hard to know how ethical anyone is being when sharing this information. With people investing so much of their money and its important to be critical. I imagine the sponsorship payment is hard to turn away but I hope you are considering all aspects before taking on sponsorships.
I think you're comparing apples to oranges. FTX wasn't a public company. That's sufficient for starters. It's important to do your homework and be analytical. Being critical is simply presumptuous, presupposing something is wrong before discovering IF something is wrong. Watch previous videos from Brandon and Marc. They can be and are selective with sponsored presentations.
@@chickolat HYLD and HDIV are traded publicly and therefore subject to regulatory requirements and filings. Also, Hamilton and its ETFs have a very traceable history. Still see no valid comparison with FTX.
Careful. You will get the dividend but the price will erode. You are better off with SCHD. The dividend doubles every 7 years. 3.5% become 7%. And you don't erode your capital.
Is Investing into HYLD a good way to create a large dividend snowball? Say buy 500 shares to start, 20 shares a week and reinvest the dividends each month. Is that a good strategy to use?
The fees for the underlying funds are very very low for Hamilton - as Hamilton contributes millions of dollars to these funds - as well as no withholding taxes - Canadian investors are mainly subjected to a .65 % but not much more then originally stated... that’s my take...
Is HYLD paying a dividend for March? It doesn't look like it, unless they haven't updated their website. I did not see a dividend for March indicated in Questrade either.
The total fees one would have to pay were at 2.09% on Jan 2nd 2023, or 20,90$ for each 10k$ invested. The yield sits at 9.18% as of Jan 20th 2023. Source: RBC, TSX. Edit: When you consider the fees, HDIV would give about 1.1% more than ZWC.
@Zach so would you say they are good etf to have ? Meaning they are not fraudulent or anything like that. I was thinking to make them botg mabe 40/60 and part of my tfsa portfolio with also other individual stock for growth. Making those 2 etf mabe 25% of my tfsa portfolio
@@Zachy93 I know the fees are taken directly from the fund and lowering the return. It's a way to make my own personal ratio because in the end, they indirectly affect one another. If an ETF has a 10% yield and a 2% fees, I know I'll still receive the 10% on the value I hold, and the fee taken from the fund, lowering its return/total value. But then you answer to @edylainemorales8876 's question: "How is the fees paid from my account. Is it deducted automaticly (sic) from dividend that i receive from them?" by saying :"yes absolutely,...". Basically, you're telling her the fees will be automatically deducted from the dividend she receives, which is not accurate.
@@edylainemorales8876 HDIV is a brand new ETF, so saying it's part of the big 3 is not a statement I'm comfortable with. Even less so saying they've never missed a dividend when they've only been around since April 2021. I thought the video was misleading on the fees. It's about 2%, same as a mutual fund. It's not a fraudulent ETF at all. But it's not as stable as some seem to believe. In my whole portfolio of ETF, I have one ETF using covered calls(ZWC) and it's the ETF that lost the most value in the last 2 years (-6.5%). But the dividends almost covered the lost in value. If I were you, I would read more about ETFs using covered calls before allocating a big portion of you portfolio. Personally, I'm gonna buy more of those as I get closer to retirement, but there are other interesting ETFs with high yield, specialized in high dividend stocks, or real estate (REIT), that are not using covered calls. Typically, anything over 6% yield is a red flag and should be scrutinize a bit more.
@@edylainemorales8876 Here's an example of the dark side of these covered call ETF taken from a comment here: " It makes no sense to have a high yield only to end up with less capital at the end of the investment period. This is the problem with QYLD who has high yield but continue to have high erosion of the capital. It would like getting back your own money." So it's something to think about, especially when there's no long term track record of return because it's a brand new ETF. The philosophy of fixed income is appealing, and I'm into that way of investing for about 50% of my portfolio. But I'd rather take less risk and have a lower yield with safer ETF and stocks, that have long track record of giving out dividends and either slow growth, or keeping their value, like Bell, Fortis, Canadian banks, Enbridge, XEI, ZRE, etc...
HDIV looks promising with its high yield and TSX outperformance. HYLD, on the other hand, seems shaky. Its payout ratio is at or a little over 100% last year based on my back-of-the-envelope calculation. Since then, its largest holdings (XYLD, QYLD, RYLD) have reduced their distributions, and coupled that with rising borrowing costs, surely they're way over-distributing by now. Since this is an income-focused ETF, I feel investors should pay close attention to the distributions of the underlying ETFs. When/if the first distribution cut does come, it'll be ingrained into the DNA of HYLD. Not only will it not keep up with inflation, but the nominal value will also fall and compound into the future.
I personally have JEPI. It's very diversified. No single holding is over 1.6% of the ETF. I feel adding the other CC ETFs (XYLD, QYLD, RYLD, etc) is counter-productive. QYLD, for example, has 21% in 2 stocks. Ironically, adding more ETFs makes HYLD less diversified, in my opinion, and more expensive. JEPI's MER is only 0.35%.
Income investors should care about the stock price of these CC ETFs. Since CC premiums are largely driven by NAV, falling NAV impacts the sustainability of these distributions.
Fun in small amounts, but your capital will never appreciate. It's good for a small amount of income, but I prefer equities with dividend payouts for the long term + appreciation.
I wont touch it. The problem with selling calls that they are essentially timing the market. Yes they could receive some premium in the short run but they will be forced to buy and sell at different times. The CBOE has a hypothetical cover called SNP 500 index and it clearly shows it will Eventually under perform the market.
When we will see The next rally, nobody knows when, when will that happen,all of these calls they will become in the money and the managers will be Assigned on these calls and will be forced to sell at low prices. And what will happen next, they will re-purchase at higher prices. And if the market repeat, cycle, they will be buying high and selling low and receiving Tiny premium along the way. it's definitely a risky and dangerous long-term strategy. Selling calls are not a free lunch from the market they come with a high cost. Otherwise, everyone will be selling calls and will beon one side of the market
Correct me if I am wrong, the usually sell coveredcall on a % of the portfolio and make a profit. So lets say they have a stock worth 100$, they sell a call for 1$ (covered mean that have the stock in their hands) and the sell price is 105. If the stock goes to 110, the will sell the stock at 105. So they will have make 6$ in profit. Since they dont put call on all their stocks, a part of the stock will make the whole 10$ profit. If the stock goes to 200, they will still make a 6$ profit on part of the portifolio and 100$ on another part) if the stock is less than 105, they will make 1$
@@jul505true, but in the other hand, if the stock fell to 90 and they sell the cover call at 95 then, they will Lose five dollars minus the premium. Sticking with your example they will re-purchase it again at $95 and they sell the call at 100 and the stock fell to $80, in this case the contract will expire worthless and they will receive the entire premium but, if the stock at 80 still and they sell another call at 85 and the stock rally again to 95, then they will have a net loss of $10 since they bought it for $95 and sold the call at 85. No matter how small contracts they sell 10% 20% etc. they will be still forst to buy hi and sell low. Now imagine if they do such strategy with margin. I hope this is clear and answers your question
I fear a lot of investors are eating up these leveraged, covered call ETFs that tend to not raise distributions, use ROC with a net reduction in NAV and generally can’t keep up with inflation. I agree that these funds may perform exceptionally poorly during an extended bull run.
“Deeper questions” on a sponsored video rings fairly hollow my friend. This video is a paid advertisement that ignores the facts. Lost some love for the channel on this one.
To calculate your return on an ETF with a 9.18% yearly yield and a 2.09% fee, you would need to subtract the fee from the yield to get the net return. In this case, the net return would be 9.18% - 2.09% = 7.09%. To find out how much you would earn on a $2000 investment, you would multiply the net return by the amount invested: $2000 * 7.09% = $142.80 So, your return on a $2000 investment in this ETF would be $142.80.
when the fund uses leverage its basically a scam. Don't borrow money to invest in equities. Ever. This thing has a 1.5 year track record I am disappointed that it is being shilled on this channel.
Would be great if you made a video about green/ESG ETFs and how people can leverage investments to support stock which aligns with their values. "Every time you spend money, you're casting a vote for the kind of world you want."
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I've been looking at this for a while, would you personally wait for the 2nd quarter to pick up?
HYLD is 30% of my portfolio, they never let me down, just started getting HDIV this year.
Watched and liked, thanks Adriano! Wait, Brandon? Is that you, Brandon? What channel am I on?
I’m retiring this year, and part of my income will be from those types of ETFs. I own HYLD, HDIV, HTAE, ARCC, and a few closed end funds and split share corps to ensure regular dividend payments. The rest of my portfolio are T, Enb, FTS, BN, BAM, DIVO, TD, XEI and ZSP. A mix of high yield and growth, allowing me to retire at 55 😊
@@thinkpassiv I chose to diversify between ETFs, stocks, sectors, so hopefully it will not be hit as hard during recession and still benefit when the market is going up. Only time will tell… 🤷♀️
I have almost all the dividend stocks you have except Enb and divo. I have 7 years to retire. I really like your portfolio but I don’t have any cover calls etfs as I think those are more for people looking for income for their retirement. Do you have those before or after you retired ?
@@pleum21 I changed my portfolio recently and will be retiring in June 😊
Hi Brandon, thank you for the detail video. One of the key question is capital preservation. It makes no sense to have a high yield only to end up with less capital at the end of the investment period. This is the problem with QYLD who has high yield but continue to have high erosion of the capital. I look forward to your thoughts.
Capital preservation would be the same thing as buying any other stock. Buy when it is low.
I think the same. It's like getting back your own money
Capital preservation, you need to look at total return = capital investment plus monthly returns. Qyld has been talked about on hundreds of videos. Qyld does go up when the overall market goes up, does it not? Like many of these all in one etfs their stock price has a lag relative to individual stocks. For those who wish Tk purchase growth stocks all the power to you, that approach only works if you get lucky and can time selling at the peak stock price and purchase when the price is very low. Good luck timing that. Purchasing these all in one etfs means you can sleep at night and who cares if the market is up one day or down the next. Pay me my monthly dividend, hard to beat that strategy especially as you approach retirement years, nothing better in my mind.
Problem is that if the CC ETF share price crashes, it might not ever recover because it gives up it's upside. It's not even good for 80 year olds because they want to at least give a full inheritance.
@@yannik9341 Thank you, that is my point considering if recession cause significant stock price reductions.
can you hold the HYLD in your TFSA or is it smarter in a RRSP?
Hi Moz...YES you can hold HYLD in both RRSP and your TFSA.
Not factoring the tax mitigation or saving (RRSP) I would MAX OUT your TFSA since there is ZERO taxation.
@@MrDorf007 I thought there was some benefits when using US stocks in a RRSP instead of a TFSA?
@@mozmagic I thought you were asking about HYLD the Canadian ETF.
@@MrDorf007 I didn't realize its considered Canadian even though it has US stocks in it?
@@mozmagic the only way to avoid the 15% withholding tax on dividends is to directly hold a U.S. listed stock or ETF. An example would be VOO. if you hold this in your RSP no withholding tax. But, if you hold VFV (which only invests in VOO) the withholding tax applies, even if you hold it in your RSP. The VFV distribution is net of the withholding tax.
The 1.2% mgt fee including underlying etf mgt fees that Brandon point out is very crucial. I was wondering the same watching along the video. Good job and thank you Brandon for pointing it out as it will make a big factor in understanding the true cost of this type of ETF of ETFs.
These vs EIT.UN?
8:10 it turns out, in HYLD’s case, diversification did not help to prevent the significant distribution cut this past Friday. HYLD still owns ETFs that hold blue chip companies but that also did not save the distribution from being cut. There is some risk to these CC ETFs and investors should be sure to properly assess the total return of the underlying ETFs and the Hamilton ETFs themselves.
Proven to underperform on the long run considering total return. Mainly because of fees... And because you give up part of the upside...Why not have a similar basket of blue chip stocks in an index ETF ( VGG for ex ) and pay yourself while rebalancing quarterly. At least you are the one who decides how much you need, so you don't have to pay taxes on distribution from the high yield ETF, and then reinvest loosing the compounding of part of your return. These products cost a lot for the promise off taking out a fixed return/capital ( part of it being NAV reduction through ROC !!! )
I've held a few of those high yielding ETFs including HYLD, HDIV, HDIF and a few split funds for over a year now. Last year my portfolio was up 8.2%. I don't know any of my friends in the market and quite a few retirees that are all in the red last year. I only own two small cap dividend paying single stocks (DIV & SRV.UN) and the rest are all high yielding ETFs and split funds. ps - most of them are in my TFSA so I don't pay any taxes either 😄💰💵
@@henryhonda8408 I am retired and went all cash end of 2021. I will re enter the market this in a few months. I did use some of those ETFs to generate income in my taxable account. They covered my yearly expenses, and offer some protection in down market. Although NAV price for HYLD ( - 23% ), HDIV ( -13% ) and HDIF ( -20% ) were hit hard in 2022, you have to care as they are income funds if they are a small part of your portfolio. So, they are useful as a niche product, I like them for what they offer! My point was that OVER THE LONG TERM, aka for investors in accumulation phase or retired folks who don't need part of their income, total return is way more important than yields. Pay yourself instead of tour financial institution with low fee index funds, especially for TFSA, RRSP and personally owned management company. Best Bogle's advice for the retail investor.
i hold 13% of hyld. i have a semi hybrid pii and growth portfolio🎉
When you receive the monthly distributions, can those be automatically reinvested on a DRIP or does it have to be reinvested manually for these two ETFs?
what if you buy them and always reinvest the yield. will in the long run out perform the sp?
Hi Marc, as a older person nearing retirement myself, I am always interested in strategies that encompass tax strategies and best draw-down solutions. I would also welcome content that might include moving to other countries like the UK and the tax implications if you take up residency. Passive income strategies and other strategies particularly aimed at retirees. Maybe also some articles aimed at retirees who want to travel ie: best places to consider, travel and medical insurance tips, etc. I hope these ideas may provide food for thought
Thanks Brandon. I personally own these etf. Love them. Thanks for posting. ❤😊
Thanks Brandon........ these are best ETFs I've ever owned. I've dollar cost averaged HYLD since I owned it and my average cost is now the same as the NAV. The huge dividends are all extra, profit or whatever you want to call it. LOVE em!!
Hey Brandon, do u know how the management fees are being paid to hamilton... the 1.20% average...? If i have no more available money to trade into my tfsa trade account. Do Hamilton takes the money from my holdings, or is it from the dividends or elsewhere. I need clarification on it if you can please. Thanks so much in advance.
They actually just take it from the gain/return of the fund. So like Brandon was saying, for HDIV (15:15 of the video), the return since inception was 6.71%.
In reality, the fund gained about 7.91%, but then when you subtract the 1.20% fee, it becomes 6.71%.
To answer your question, if you have no more money available in your TFSA, that doesn't matter in respect to the 1.20% fee. You won't really notice that they collect their fee because they take it from the returns of the fund.
I always like your content but I believe we are always biased whenever we post a sponsored video. Can you tell the full truth? Probably not...
He pinky swore that's as good as gold
We are ALWAYS biased with views, presentations, opinions, etc., sponsored or not. Sponsorship often brings us more information than we would've had otherwise and we should be astute enough to follow the paths of the information we're given, not dismiss - in this case - a video because of sponsorship. To take that view of sponsorship is itself a bias.
Capital erosion will probably happen with these types of funds I think over the long run, still you will get you dividends/income. I personally own both of these etf and also some individual stocks, although I sold most of these now. Im down 25% on microsoft and indeed stuck with that stock now for over 1.5 year (unless I want to lose 25% of my capital by selling it) This thing gets me barely 1% dividend, and is unfortunately a huge part of my rrsp. I ask, if in 15 years my Hyld is down by 50%, do you think I will still receive my dividend of 10+ % every month? I think yes. The way to see this type of investing is you really are getting yourself a that you build over time. Better forget that capital in most cases, i fear. Just act as if its gone. But your monthly distributions keep going, and going, and going...
The ETF is priced by the market. The only reason it's down 50% is that the market's collective wisdom believes the distribution is not sustainable.
Will the monthly distribution guaranteed going on and on at the same 10%+ to compensate for the capital loss?
Unfortunately, the distribution is not guaranteed
Personally think there's a massive difference between MSFT and this ETF. Over the long run, capital erosion will be inevitable with HYLD/QYLD, whereas Microsoft (Windows, Office365, Azure etc.) will only continue to grow over time.
Great comment couldn’t agree with you more. Clearly you have a solid understanding on the strategy around these etfs. I will say this, these etfs are not all eroding. They’ve come a long way in the past 10 years.
With the erosion we won't have anything to leave the grandchildren to lol.
I get the total returns thing...but would like it a bit skewed towards income, which can then be turned into more shares that generate income...the unrealised gains are not actually working for me....not until I sell them.
One question, for both you have to pay the 15% withholding tax? Or it only applies for the HYLD? I am planning to get them on my TFSA
I’d imagine more so for HYLD as it’s more US focussed
Four things working against me as a Canadian investor...
1. Weak currency
2. Higher ETF fees
3. Higher MER
4. Smaller market.
These factors make me want to expatriate. The only advantage I can think of being a resident of Canada is tax-free TFSA. But since I am low-income senior with only modest savings, even that is not significant. Add the higher cost of living and residency in Canada is looking less desirable.
Please do a video on for whom it makes financial sense to leave Canada.
Nice work! Thanks for all the hard work you put into this video. Very appreciated and helpful.
Do they offer qualified dividends?
In my opinion these would be great options if you have a non-registered account and want to reduce the amount of taxes you are to pay. With the dividend tax credit you will still fair better than getting fully taxed and not quite as low as capital gains... but you get the point. If you want to invest for the long term index funds that charge much lower fees would be better. I would also look at the prospectus for these funds since they charge trailing fees which eat up your profits. Blackrock, BMO and Vanguard have much better options with lower management fees. You should stick with funds that charge less than 1% in management fees and these funds charge more than that.
The distributions you get are net of fees.
HYLD starts at 16:38
I have had c/c etf's for many years now and I have made a lot of money from them. I don't think I would ever have 100% in c/c but the monthly income is exciting to see come in!
What’s the tax efficiency for these?
Hey Brandon, I'm newish investor and am currently using a managed portfolio with wealthsimple it wants decent enough dividends but also has to pay a bit in fees. Would it be worth to switch to my own unmanaged profile to avoid fees?
Thanks!
I entered - HYLD - Jan 12th - At $12.24 / unit and that’s approximately a 30% fall from the time of inception or 52wk high - hopefully the cost I paid should hold through the rough patches ahead... but like you say - nothing is guaranteed - but thank you for your excellent presentation
He Brandon, Good informative video like always. Just one thing about ht e costs . If you look at the ETF facts, it clearly mentions the real costs. They end up being 2.35%. Still if the performance is good, nobody cares, just on the lows it will bite back hard.
Exactly 💯. But even that high still getting good yield but ppl need to know.
I'm curious/concerned why Hamilton hasn't release their 2022 TAX info on their website.
It's basically Feb. now and they haven't updated, making it hard for investors to do their tax. Plus, since they have a bunch of new EFTs in the past 2 years...how has the tax worked out for these funds.
They have until Feb 28th for most documents , March 31st for anything to do with trusts and partnerships . Guaranteed it will be within days of that deadline
I love hamilton etfs i got shares in almost all of their etfs that have posted positive growth since inseption
There are a lot of video about hamilton etf but not much information about Hamilton Capital Partners itself. Could you share some finanical information/statement about the company itself, please?
I had a lot of questions on these 2 and you answered them all. Thank you for making this video!!
I put a bunch of money into HYLD and HMAX.
Still not sure if this is a wise move.
How yo buy it?
Thanks Brandon. QQ ... are these funds designed to maintain their net worth? If so what is the target growth over the long term? Please/Thanks.
RRSP foreign amount limit still the same? Edit: The February 23, 2005 budget eliminated the foreign content limit completely for RRSPs and RRIFs, for 2005 and later years. If desired, RRSPs can now consist of 100% foreign content.
Great video....what if I put all 100k of my funds into HYLD HDIF HDIV & HMAX? Diversified enough? I currently have half of my funds in VFV...but am considering going all in from growth to PII...
Well, take a look at what happened to HYLD this past Friday before you jump in like that.
Take a chart from HYLD, since inception. See if your complete total return is up. Including principle balance. Also think if it’s not, and you are down x amount of percent, and you need to withdraw from the fund, you will be looking at taking a loss. Please do your homework, and don’t be one that got hauled out behind the woodshed with one of these funds
HYLD is actually up since I bought it...and the dividends are nice
...despite the recent drop...
what about covered calls missing out on the upside? The market is down and I hear covered calls do better in that situation...when things get better in a year or two, will these covered calls perform less well vs the underlying stocks?
is the mer really above 2%?
Brandon and Adrian you both are soooo good ... toguether you complet perfectly the explication of those etf :)
Agreed. Between the two of these gentlemen, I have learned so much. Only minor complaint is that they jump around one the screen so much but still the best out there.
Very impressed with this channel. How about HMAX?
Brandon do You have either of these ETFs in your portfolio?
Doubtful he’s just selling out for a quick buck
@@Otownbassinthe lad sold out.
Risky investments using leverage and covered calls. Payout ratio too high. Funds are new with high fees.
Why not invest in VDY?
Or SCHD
Thanks so much for that in depth look into these new ETFs! That helps a lot and I really appreciate your channel!
Both are good All-in-one cc ETFs👍
I like HDIV and HYLD for great monthly Dividends.
BTW Brandon, is the heat off in your house?😁
Heat and power....doesn't inspire confidence does it
@@Ian-lm5ep
Brandon and his dad are very cool...😎
it's been a month why didn't you buy any of this etc yet ? I don't see this etc in your portfolio
Hey Brandon, excellent video as usual! They paid out 79 cents in 'foreign tax witheld'. Does this mean that this etf isn't very tax efficient if held in a non-registered account?
79 cents was also ROC which is tax free
Great video. I have QYLD in my portfolio now and have been disappointed with its market value continuing to decrease. Once the dividend payout equals market value reduction (my break-even point), I will likely sell QYLD. I will be looking into HDIV.
That’s the point when you’d want to keep loading up, once you’ve broke even your just creating more and more passive income
@@nohesi2x Perhaps, but it seems to make more sense to go to a high-yield ETF that does not lose its value.
@@gordd7348 Yes that's true
Do the math. Waiting for the break even doesn't always make sense. Moving your qyld to another fund may improve your yield which is what matters in the end. As long as the fund you are moving to has the same outlook of following the market back up. Just a different vehicle I guess you could say. With higher yield.
@@TheJDShow I can't disagree with that approach. I'm still going to wait since I am only a month out from breaking even, and the QYLD price is actually going up.
Awesome analysis as always Brandon. Good job.
I buy shares/etfs/reits with my bank and am currently making aprox $1000 + in my TSFA monthly. The average dividend is about 13% monthly. HYLD is a recent buy for me and will buy more as the months go on. Most of my stocks offer drips.
How?? And would you mind telling me what you own already?
Great video Brandon. I do like both of those ETFs quite a bit.
Good stuff, I'm thinking of investing in HYLD for US exposure. Even though Hamilton is a Canadian Company, is the 15% US holdback applied if it's held in a Non Registered account?
Great to learn more about those PI etfs. Thank you Brandon 😊
how can I purchase these etf's on U'S Market
They are on the TSX
I'll stick with EIT, thank you very much
Timestamps would be very appreciated.
Can you do a video about HMAX??
Fees are a bit on the high side
These are great for retirement accounts, where leverage is not allowed. the modest boost of 25% leverage can enhance your returns (and losses) a bit.
I also did not notice if tax treatment was mentioned- most of the dividends are capital gains, which is taxed at a beneficial rate in a cash account
After so many US financial influencers who promoted FTX and now that we know what happened with that whole thing, I'm find myself being hesitant to watch videos like this that are sponsored by the company and a very new fund. Its hard to know how ethical anyone is being when sharing this information. With people investing so much of their money and its important to be critical. I imagine the sponsorship payment is hard to turn away but I hope you are considering all aspects before taking on sponsorships.
I think you're comparing apples to oranges. FTX wasn't a public company. That's sufficient for starters. It's important to do your homework and be analytical. Being critical is simply presumptuous, presupposing something is wrong before discovering IF something is wrong. Watch previous videos from Brandon and Marc. They can be and are selective with sponsored presentations.
@@DanMurray-ql3rv Hamilton Etfs is a private company.
FTX was a scam, an unregulated crypto exchange. Why do people even make this comparison
@@chickolat HYLD and HDIV are traded publicly and therefore subject to regulatory requirements and filings. Also, Hamilton and its ETFs have a very traceable history. Still see no valid comparison with FTX.
Dan works for Hamilton hence his defensive position
Careful. You will get the dividend but the price will erode. You are better off with SCHD. The dividend doubles every 7 years. 3.5% become 7%. And you don't erode your capital.
Is Investing into HYLD a good way to create a large dividend snowball? Say buy 500 shares to start, 20 shares a week and reinvest the dividends each month. Is that a good strategy to use?
Yes.
The fees for the underlying funds are very very low for Hamilton - as Hamilton contributes millions of dollars to these funds - as well as no withholding taxes - Canadian investors are mainly subjected to a .65 % but not much more then originally stated... that’s my take...
Awesome video Brandon!
not a fan of sponsored videos, 100% he makes more from this one spot than any of his investments - not a good look imo
I agree. I like Brandon's videos, but knowing it's a sponsored video definitely makes me think he can't truly say what he thinks.
Is HYLD paying a dividend for March? It doesn't look like it, unless they haven't updated their website. I did not see a dividend for March indicated in Questrade either.
The total fees one would have to pay were at 2.09% on Jan 2nd 2023, or 20,90$ for each 10k$ invested. The yield sits at 9.18% as of Jan 20th 2023. Source: RBC, TSX.
Edit: When you consider the fees, HDIV would give about 1.1% more than ZWC.
How is the fees paid from my account. Is it deducted automaticly from dividend that i receive from them?
@Zach so would you say they are good etf to have ? Meaning they are not fraudulent or anything like that. I was thinking to make them botg mabe 40/60 and part of my tfsa portfolio with also other individual stock for growth. Making those 2 etf mabe 25% of my tfsa portfolio
@@Zachy93 I know the fees are taken directly from the fund and lowering the return. It's a way to make my own personal ratio because in the end, they indirectly affect one another. If an ETF has a 10% yield and a 2% fees, I know I'll still receive the 10% on the value I hold, and the fee taken from the fund, lowering its return/total value.
But then you answer to @edylainemorales8876 's question: "How is the fees paid from my account. Is it deducted automaticly (sic) from dividend that i receive from them?" by saying :"yes absolutely,...". Basically, you're telling her the fees will be automatically deducted from the dividend she receives, which is not accurate.
@@edylainemorales8876 HDIV is a brand new ETF, so saying it's part of the big 3 is not a statement I'm comfortable with. Even less so saying they've never missed a dividend when they've only been around since April 2021. I thought the video was misleading on the fees. It's about 2%, same as a mutual fund.
It's not a fraudulent ETF at all. But it's not as stable as some seem to believe. In my whole portfolio of ETF, I have one ETF using covered calls(ZWC) and it's the ETF that lost the most value in the last 2 years (-6.5%). But the dividends almost covered the lost in value.
If I were you, I would read more about ETFs using covered calls before allocating a big portion of you portfolio. Personally, I'm gonna buy more of those as I get closer to retirement, but there are other interesting ETFs with high yield, specialized in high dividend stocks, or real estate (REIT), that are not using covered calls. Typically, anything over 6% yield is a red flag and should be scrutinize a bit more.
@@edylainemorales8876 Here's an example of the dark side of these covered call ETF taken from a comment here:
" It makes no sense to have a high yield only to end up with less capital at the end of the investment period. This is the problem with QYLD who has high yield but continue to have high erosion of the capital.
It would like getting back your own money."
So it's something to think about, especially when there's no long term track record of return because it's a brand new ETF. The philosophy of fixed income is appealing, and I'm into that way of investing for about 50% of my portfolio. But I'd rather take less risk and have a lower yield with safer ETF and stocks, that have long track record of giving out dividends and either slow growth, or keeping their value, like Bell, Fortis, Canadian banks, Enbridge, XEI, ZRE, etc...
What are your thoughts on XDG
HDIV looks promising with its high yield and TSX outperformance.
HYLD, on the other hand, seems shaky. Its payout ratio is at or a little over 100% last year based on my back-of-the-envelope calculation. Since then, its largest holdings (XYLD, QYLD, RYLD) have reduced their distributions, and coupled that with rising borrowing costs, surely they're way over-distributing by now. Since this is an income-focused ETF, I feel investors should pay close attention to the distributions of the underlying ETFs. When/if the first distribution cut does come, it'll be ingrained into the DNA of HYLD. Not only will it not keep up with inflation, but the nominal value will also fall and compound into the future.
I personally have JEPI. It's very diversified. No single holding is over 1.6% of the ETF. I feel adding the other CC ETFs (XYLD, QYLD, RYLD, etc) is counter-productive. QYLD, for example, has 21% in 2 stocks. Ironically, adding more ETFs makes HYLD less diversified, in my opinion, and more expensive. JEPI's MER is only 0.35%.
Income investors should care about the stock price of these CC ETFs. Since CC premiums are largely driven by NAV, falling NAV impacts the sustainability of these distributions.
HYLD now holds JEPI and JEPQ and got rid of two of there lesser ETFs.
@@paulsantori8920 since the adjustments, the fund has trended upwards
Two of my faves!
Me too!
Fun in small amounts, but your capital will never appreciate. It's good for a small amount of income, but I prefer equities with dividend payouts for the long term + appreciation.
Like SCHD.
The stock depreciation is 29% in the only year it's alive. Does that justify 14% div? NO
Haha ya I’m totally gonna take advice from a dude wearing a beanie and a hoodie rocking the diamond earnings 😂😂😂
excellent video
I wont touch it. The problem with selling calls that they are essentially timing the market. Yes they could receive some premium in the short run but they will be forced to buy and sell at different times. The CBOE has a hypothetical cover called SNP 500 index and it clearly shows it will Eventually under perform the market.
Interesting video! Thanks.
I thought I’m on Adrian channel. He talked about all these already.
Should disclose how many shares you have or if you are just shilling a garbage fund.
If we owned shares of HYLD would we be subject to the US 15% withholding tax? If so, that's not so good.
But, you are getting ROC back as yield.
Hdiv didn't use ROC for last year unless I'm missing something
@@nein9nein can you please show where you see they didn't use ROC? I didn't
Answer: Yes.
When we will see The next rally, nobody knows when, when will that happen,all of these calls they will become in the money and the managers will be Assigned on these calls and will be forced to sell at low prices. And what will happen next, they will re-purchase at higher prices. And if the market repeat, cycle, they will be buying high and selling low and receiving Tiny premium along the way. it's definitely a risky and dangerous long-term strategy. Selling calls are not a free lunch from the market they come with a high cost. Otherwise, everyone will be selling calls and will beon one side of the market
Correct me if I am wrong, the usually sell coveredcall on a % of the portfolio and make a profit. So lets say they have a stock worth 100$, they sell a call for 1$ (covered mean that have the stock in their hands) and the sell price is 105.
If the stock goes to 110, the will sell the stock at 105. So they will have make 6$ in profit. Since they dont put call on all their stocks, a part of the stock will make the whole 10$ profit. If the stock goes to 200, they will still make a 6$ profit on part of the portifolio and 100$ on another part)
if the stock is less than 105, they will make 1$
@@jul505true, but in the other hand, if the stock fell to 90 and they sell the cover call at 95 then, they will Lose five dollars minus the premium. Sticking with your example they will re-purchase it again at $95 and they sell the call at 100 and the stock fell to $80, in this case the contract will expire worthless and they will receive the entire premium but, if the stock at 80 still and they sell another call at 85 and the stock rally again to 95, then they will have a net loss of $10 since they bought it for $95 and sold the call at 85. No matter how small contracts they sell 10% 20% etc. they will be still forst to buy hi and sell low. Now imagine if they do such strategy with margin. I hope this is clear and answers your question
I fear a lot of investors are eating up these leveraged, covered call ETFs that tend to not raise distributions, use ROC with a net reduction in NAV and generally can’t keep up with inflation. I agree that these funds may perform exceptionally poorly during an extended bull run.
@@James_48 very well said.
They both have expensive MER
Strongly recommend the DRIP if you want to build wealth with the covered call strategy.
It has to be too good to be true. If you put a 14% yield, compounding monthly, 10k with 200 added every month you would get 92k in 10 years
The higher fee etfs are turning into mutual funds
Hdiv is best for Canadain
HMAX is coming out on Monday😉
HDIV is about 40% Canada, 50% US, and 10% international.
My brother said HDIV has two management fees. Be careful
What are they
@@lankanvenu I’ll ask
@@PhysicalCoppercollector thank you brother
At the HDIV level yes. But it then buys other ETFs that also charge fees. That is my understanding
HDIV is good for sideways markets. You get no upside and only downside if markets fall. But in sideways markets you get a good coupon.
“Deeper questions” on a sponsored video rings fairly hollow my friend.
This video is a paid advertisement that ignores the facts. Lost some love for the channel on this one.
To calculate your return on an ETF with a 9.18% yearly yield and a 2.09% fee, you would need to subtract the fee from the yield to get the net return. In this case, the net return would be 9.18% - 2.09% = 7.09%.
To find out how much you would earn on a $2000 investment, you would multiply the net return by the amount invested:
$2000 * 7.09% = $142.80
So, your return on a $2000 investment in this ETF would be $142.80.
Try watching the video. 9.18 is what the consumer gets. It's not 9.18 minus fees.
Wrong...."net of fees"
@@ryanreid5859 you mean 9.18 is after fees？
@@jiansu yes. Did you watch watch the video?
your yield is not your return
Never trust an etf. At some point its going to reverse split😢
Looks like HYLD has underperformed.
It all depends when you got in or if you didn't DCA. I'm doing just fine with this fund.
@@henryhonda8408 Yep, I hear that excuse for underperfomance all the time.
Wow, they are the sponsors! Maybe lead with that.
he said it 40 secondes in the video...
You literally did not watch the video. He 100% led with that. Stop the FUD
Bummer video was sponsored
when the fund uses leverage its basically a scam. Don't borrow money to invest in equities. Ever. This thing has a 1.5 year track record I am disappointed that it is being shilled on this channel.
Probably cheaper for Hamilton to advertise through him compared buying ad space on BNN
I disagree with your points about funds using leverage (I don’t use leverage myself) but I don’t like the ETF pitch either
Levrage is a scam? Lol
@Doodlin Dentist I used my own leverage via line of credit all through covid.
Guess what...It was one of the smartest moves I've ever made...
These funds aren't scams. Dentists on the other hand...
Would be great if you made a video about green/ESG ETFs and how people can leverage investments to support stock which aligns with their values. "Every time you spend money, you're casting a vote for the kind of world you want."