Hamilton Canadian Financials Yield Maximizer ETF T.HMAX

RE:RE:RE:Capital erosion?

[BlueJay2020]

I'm not sure a covered call ETF really has anything to do with trying to beat the market, and this one even less as the covered calls are AT the market, meaning it is what it is - it's just a case of the level of volatility driving the premium.  

This is a defensive strategy ideally matching the market in terms of total return but with less volatility.  There's a far chance it will lag the market over the long-term, as long-term the markets always go up.

The advantage here is that you don't have to try and time the market to know when to exit to get monthly income - it's drip fed back to you.   

I continue to accumulate HMAX in my TFSA - it's all treated as (non-taxable) income there, and I'm not as tempted to spend the juicy premiums.  Instead, I'll watch this over the medium term and if there is any capital erosion use some of the distribution to purchase more.

I'm also adding HYLD to my TFSA for the same reasons.