RE:RE:Its a startJumpstart:
The main reasons we opted for HDIF are:
- Our portfolio has always consisted of TSX listed equities (albeit some of which were heavily or exclusively invested outside of Canada - such as SGR.un, DIR.un, DR, etc.). So HDIF provided a TSX-listed opportunity for us to access primarily US markets.
- We particularly like the equal weighting of the 6 constituent ETFs and also the equal weighting of the components included in each ETF - as opposed to the more traditional method of adopting a cap weighted market index.
- We also like the generation of more capital gains using the covered call strategy and the modest amount of leverage they apply (25% cash leverage play).
Will this work out well as we move forward? Your guess is as good as ours! Currently, HDIF occupies 2.1% of our portfolio with an ACB of $8.0254.
We will be very keen to note the distribution composition breakdown on the upcoming T3 slip - hoping that the majority of the distribution will be Capital Gains and Return of Capital.
Cheers!