Hamilton ETFs

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Saw your great video on Hamilton HCAL EFT, it posted 7.2% return with 1.49% management fee, how does the HMAX ETF differ, it has a higher return @ 15.42% with 0.65% management fee but why do they offer higher returns when its essentially the same ETF of bank stocks, I assume there’s some higher risk

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Asked on April 30, 2024 11:23 am
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Hey there. HMAX and HCAL are a bit different. First off, HMAX is a covered call ETF while HCAL is simply a leveraged ETF.

Secondly, HMAX contains Canadian financials while HCAL is simply Canadian Banks. The reason for the outperformance of HMAX has primarily been its exposure to the Canadian insurers (Intact, Great-West Life, Manulife, Sunlife) etc. They have done much better than the banks over the last while here because they don't necessarily have exposure to all the headwinds the banks do (mortgages, weakening consumer etc).

In terms of fees, they're lower for HMAX jsut because the bulk of HCAL's management fee is going to be the cost of leverage.

Two solid funds, but also two pretty different funds.

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Posted by Dan Kent
Answered on May 2, 2024 7:40 am
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