HCAL and HUTS yeild

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Hello, I have been looking into the two ETF’s. I understand that this is a leverage play i.e. 25%. What I do not understand is why are the monthly distributions so high? I did the math on both ETF’s added all the yields up added 25% and it should not be yielding at current percentage. This is not a covered call ETF. Is there return on capital? What am I missing here?

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Asked on February 12, 2024 5:52 am
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You are exactly right, there is return of capital on both the funds. In fact for 2023 the bulk of the distributions have been return of capital. I've attached a link below to Hamilton's site where it goes over the distributions.

https://hamiltonetfs.com/tax-information/

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Posted by Dan Kent
Answered on February 13, 2024 7:58 am
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Thank you, Dan, just a follow up question? Is this common for ETF's and will this not erode the NAV? Would you consider investing in these funds?
(Marco Carello at February 13, 2024 3:43 pm)
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Hi I'm looking at HCAL also and look forward to Dan's response to Marcos second question
(scott ingleby at February 14, 2024 10:28 am)
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