Hamilton Enhanced U.S. Covered Call ETF (HYLD) - All-in-one Series CC ETF
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Our all-in-one covered call ETF series continues with Hamilton ETFS. Hamilton has many covered called ETFs, however in this post we will focus on one their all-in-one ETFs.
Imagine being able to invest in over 500 of the best companies the United States economy has to offer. In addition, imagine this fund is also invested in some of the largest real estate companies, gold producers and energy companies in all of North America. This is exactly what HYLD CC ETF has to offer and more.
The Hamilton Enhanced U.S. Covered Call ETF (HYLD) is designed to provide investors with attractive monthly income and long-term capital appreciation by investing in a diversified, multi-sector portfolio of primarily covered call ETFs, focusing on U.S. equities.
Key Features:
• High Yield Focus: HYLD invests in high-dividend-paying U.S. stocks across various sectors, aiming to deliver substantial income to investors.
• Covered Call Strategy: The ETF employs a covered call strategy, where it holds U.S. equity ETFs and sells call options on these holdings to generate additional income.
• Diversification: The fund’s portfolio includes exposure to multiple sectors, such as technology, healthcare, consumer discretionary, financials, communications, and more.
Top Holdings:
As of January 31, 2025, HYLD’s top holdings include:
• Hamilton U.S. Equity Yield Maximizer ETF (SMAX): 66.6%
• Hamilton Technology Yield Maximizer ETF (QMAX): 30.6%
• Hamilton U.S. Financials Yield Maximizer ETF (FMAX): 9.4%
• Hamilton Healthcare Yield Maximizer ETF (LMAX): 7.5%
• Hamilton Gold Producer Yield Maximizer ETF (AMAX): 3.8%
• Hamilton Energy Yield Maximizer ETF (EMAX): 3.1%
• Hamilton REITs Yield Maximizer ETF (RMAX): 2.2%
• Hamilton U.S. T-Bill Yield Maximizer ETF (HBIL/U): 1.2%
• Hamilton U.S. Bond Yield Maximizer ETF (HBND/U): 1.2%
These holdings collectively contribute to HYLD’s diversified exposure to U.S. equities and sectors.
Performance and Yield:
• Annualized Yield: As of January 31, 2025, HYLD offers an estimated annualized yield of 11.60%, based on the most recent distribution remaining unchanged for the next 12 months.
• Distributions: The ETF provides monthly distributions to investors, enhancing the income-generating potential of the investment.
Considerations:
While HYLD offers attractive income potential through its high yield and covered call strategy, it’s important to recognize that such strategies may limit the upside potential of the underlying equities. Additionally, the use of leverage introduces additional risk. Investors should assess their risk tolerance and investment objectives before considering HYLD as part of their portfolio.
Want more info about Hamilton`s HYLD fund? Visit their site: Hamilton ETFs website.