HYLD & HDIV: Lower Fees & Distribution Increase! FULL 2024 Update: Q&A w/Hamilton ETFs
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00:00 Intro
01:09 HYLD/HDIV Fee Reduction
05:36 Distribution Increases & Policy
09:03 HYLD/HDIV Cushion
10:01 Sector Allocation Strategy
16:55 HDIV: Income & Growth?
19:11 HYLD/HDIV Overlap
20:11 HDIV vs XIU
21:03 HYLD vs VSP
22:45 HYLD Growth (Without DRIP)
24:40 Options Strategy
27:07 Why Equal Weight?
28:11 New Funds + Distribution Increases coming?
MISSION:
Help everyday people to invest on their own, in order to create their own source of Passive Income to enhance their quality of life and reach Financial Independence
GOALS of this Channel:
1) To share my Personal Investing Journey & Strategy with the world. Everybody needs to make their own investing decisions. I am NOT against any style of investing and I will NEVER claim my Investing strategy is the “best”; its the best FOR ME
2) Educate you about Income Oriented Investing with a particular focus on Covered Call ETFs listed on the Canadian & U.S. Stock Markets
DISCLAIMER:
The videos and opinions on this channel are for informational and educational purposes only and do not constitute investment advice. Adriano Starinieri is not registered to provide investment advice and as such does not provide recommendations - those looking for investment advice should seek out a registered professional. Adriano is not responsible for investment actions taken by viewers.
#passiveincome #investing #dividendincome #financialfreedom #livingoffdividends #covered call #high yield #income
I've got HYLD & HDIV as my core holdings with the yield maxes as additions. Couldn't be happier. Thanks Adrian for having having both these gentlemen on and go Hamilton 🎉
My pleasure!
Always a pleasure watching these interviews. Hope they keep crushing it with growth of the funds and their team as well. HYLD is still the darling covered call ETF of Canada.
I have both in my TFSA and love both. Good income and no nav erosion. Keeps me smiling. These started my confidence in covered call etfs.
Yeah there’s only a portion of the portfolio in options , the rest is for appreciation. So there’s no reason the nav would ever erode unless the managers were completely useless
These are amazing funds !! I am super happy with them
Hamilton fund managers continue to be outstanding stewards of shareholders money
I have a lot of respect for the Hamilton funds they are doing a wonderful job with these funds
i love hyld.. hoping for another div increase.
Love all your videos with all the etf providers. Hamilton is my favourite etf provider Thanks Adrian.
I was getting worried about HYLD over the last year or so. No longer. Obviously income is number one but you don't want a fund that's going to remain stagnant either.
If a fund is paying 12%, a stagnant price is good. It means that it is paying out everything it earns
@@dkyrtata6688
It also had a big drop after inception. I don't want to be at a loss forever. It's good to see it moving.
Great interview! 25% of my portfolio is HYLD. Would it be possible for Hamilton to update performance, yield, NAV data on website every day and not end of month only? It'll help us quickly decide which fund we'll buy.
i appreciate you adriano for sharing. very infomative. thank you so much.
Glad it was helpful!
Another great video! So great to have the questions I don't even know to ask, answered. Thanks Adrian!
Another very good Q & A with funds managers! Always the best video for me! Keep up the good job Adrian!
Thanks for sharing, very informative and helpful.
Adrian, love your channel! 👍👍👍👍👍
Thanks Adrian for that video. Very informative!
Hello: For beginners, may you kindly help us understand the layers of taxation for Canadian investors (with both HDIV and HYLD). Thank you.
Never mind. I just found this information on another video. Thanks.
Great video, dude. I don't own either of these but like keeping my ear to the ground.
Very good video. I would have liked though to hear the Hamilton representatives speak about the "tax efficiency" of HYLD & HDIV when held in a non-registered account.
tax details on their website for 2023
great video, like the internal approach
Definitely glad for all the changes, and to see how it's been improving since inception!
Good video, again. Thanks.
I hold HDIV and HYLD in my RRSP. Like what they are doing with the changes. I would like to add HDIV to my non- registered account but as some of the holdings are US, specifically Healthcare and Tech, I would like to know the tax implications and don’t want to wait till next year when they provide the breakdown for 2024. Is there a way to find out before then
Hoping someone on this board can clarify. Hamilton's web-site now shows a yield of 12.07% for HYLD. These fees that are being discussed on this video are they taken from the 12.07% or are they already factored into the yeild?
It's already factored in after all fees and from u.s. and Canada
HDIV looking really good now
Hi adrian. What do you think of the wealthsimple stock lending and making extra money. I got that advertising and have no idea if i should do this.
it's free money so why not.. but unless you hold popular individual stocks like tesla and nvidia, you will get very little from stock lending.
@@speedyfeint i have like hyld in there. Thanks for your reply.
Stock lending rarely happens with funds.
I like the Defence Contractors and Aerospace sector - especially (Defence Contractors) - fabulous long term growth in names such as Lockheed Martin and Northrop Grumman $$ 😎
HDIV & HYLD are my biggest income funds that keep growing & im comfortable to keep adding to! Thanks Adriano
just retired love them both!!!
Is hmax bad compared to hyld and hdiv? I find hdiv is more than hyld when i see last 5 years chart.am i missing anything
apples and oranges.
@@PassiveIncomeInvesting hmax better?should i load hmax
Do we keep these in TFSA or RRSP?
Both.
Either one is fine because HYLD is not tax-efficient in a non-registered account since all the dividend income of the underlying U.S. stocks reach the fund as foreign income. This means it is taxed like interest. This is the breakdown for 2023: Foreign Income=49.37%, ROC=42.58%, Capital Gain=6.91%, Canadian Dividend=1.14%
In contrast, HDIV is better suited for a non registered account because it pays less foreign income and more Canadian dividends and ROC: Foreign Income=15.92%, Dividends=11.77%, ROC=72.31%
either or
I am a conservative investor so really liked what you guest had to say about not paying out more than the fund makes. My core position is HYLD and will give HDIV a look as well.
The problem is that in most cases you will never know whether a fund is paying out more than it earns. Receiving ROC is not an indicator of that happening but rather a measurement of tax efficiency.
I will look at funds like say competing S & P 500 index type funds and compare and monitor. My first rule of investing is to preserve my capital. If a fund is poorly managed and has to pay you high returns by returning part of your original investment capital to maintain distribution that is not a true return and if it continues and you spend the distribution and you don't pay attention you will erode your capital. If it sounds to good to be true you I will pay attention. I would much rather have a fund that might have a lower but true distribution that can be maintained and adjusted by the fund managers depending on market conditions works for me. The clam shuffle of very high returns that result in nav erosion is not an investment I want. But I can see how easy this can happen. If I look at a multi year chart of a fund and the nav just keeps dropping over time I would not invest in this fund. But it looks like we will likely be going into a positive market that could hopefuly last for several years. Especially the US market. Under those conditions funds would not have any problem paying high distributions and the nav could even go up. But if the market is flat or going down and the fund keeps paying you the same high returns then I think you need to pay close attention to not start eroding your original investment capital by spending distributions partially funded by your own original investment capital. Then again if we were to be heading into a bear market I would cash out all my stock etf's and move my money into much safer etf's and or guaranteed investments and ride it out. I am about to retire. So taking a 10 year window if I have 1M to retire I should be able to generate all the income I need and my account balance should realistically be 1.2 M or more in 10years from now while living off returns if I manage my money properly. I need to be able and fund my retirement for likely around the next 20 years. If I invest in a way that erodes my capital things will not go well for me.@@dkyrtata6688
Can somebody tell me what QMAX annual yield is Keep getting different numbers on every web site
Some sources do not calculate it properly or not at all when there is less than a year's worth of distributions. But the forward yield only needs the current distribution because it assumes that the future ones for the next 11 months will be the same.
The current distribution for QMAX was raised from $0.185 to $0.19. Using the $0.19 multiply it buy 12 and divide by the current price of $19.63. That gives 0.11614. Shift the decimal by 2 positions and you have 11.614% annual (forward) yield
calculate it yourself in 6 seconds or less
Adrian, please. Let them do some of the talking. Let them explain. You put words in their mouth.
dont you get it yet? they are not allowed saying certain things. if i say it , they can confirm it
They were double dipping on fees, I’m out of HYLD HDIV and looking for something else. Over 2% MER is ridiculous
Not really. The managers of the underlying ETFs got paid for managing those ETFs and you paid Hamilton a bit extra for grouping the ETFs together and borrowing money to provide leverage (which comes at cost of paying interest).
The management fee was not over 2%. Hamilton said it was a bit over 1%.
Here is what I understood from your complaint: You bought the fund because you were impressed with the publicized yield of say 11%. You were happy to earn 11% up until you learned that had the MER been 1% less you would have earned 12%. Now you feel that Hamilton cheated you and are looking for something cheaper
@@dkyrtata6688 the ETF facts clearly state HDIV 2.4% MER, there is no debate
Where did you see the 2.4% MER? The fund facts I see on the website says "0.00% (subject to the fees of the underlying portfolio ETFs)."
Plus at 3:15 in the video, he says that the double layered management fees amounted to 1.3% and now it is 0.65%. And the interest on the leverage is added to that which may very well amount to over a 2% MER since interest is not cheap nowadays. That is to be expected from a leveraged fund.
In any case, you seem more focused on how much Hamilton collects in fees rather than what you collect in distributions.
What ever the fee is call them and ask if they can manage the fund for free , let me know how that goes
@@mmmyeahh Absolutely, because fund managers are only motivated when they work for free and pay borrowing costs out of their own pockets
HYLD IS THE CROWN JEWEL OF THE CANADIAN CC ETFs.
especially after the updates!
Pretty unhappy with HDIV. The capital gains was all replaced with Other income so I think I'm getting screwed on taxes
You need to compare it with capital gains you need to realize with Vfv of voo
Here is the breakdown of HDIV for 2023: Foreign Income=15.92%, Dividends=11.77%, ROC=72.31%
ROC is deferred capital gains because it lowers your cost base when you sell the fund. This means that you declare higher capital gain because by receiving you own money back you have actually paid less for the fund. As long as you don't sell the fund no tax is paid on the ROC (i.e. deferred capital gain).
hi adrian! where should i/ canadians have hyld? tfsa or rrsp? which is better/more advantagious for us canadians hyld o hyld.u? thanx
Either one is fine because HYLD is not tax-efficient in a non-registered account since all the dividend income of the underlying U.S. stocks reach the fund as foreign income. This means it is taxed like interest. This is the breakdown for 2023: Foreign Income=49.37%, ROC=42.58%, Capital Gain=6.91%, Canadian Dividend=1.14%.
These numbers are much the same for HYLD.U (i.e. within 1-2%) but you would have to incur the added expense of converting your C$ to U$ and possibly back again years later when you sell. And all your tax reporting (in a non-registered account) would have to be in C$ including the commissions, gains/losses, and currency conversions.