I Bought the Brand New ETF UMAX

Today was the first trading day for Hamilton Utilities Yield Maximizer ETF (UMAX).

The ETF aims for an aggressive 13% return on investment. My investment in HYLD has returned over 10% in the year that I owned it.

UMAX invests in companies in the oil & gas, and communication sectors. Companies such as BCE, TC Energy, Enbridge, Rogers, Foris, etc. These are the big names in Canada.

It uses a covered call strategy. It sells at-the-money covered calls on 50% of the portfolio. This could result in the shares being called away but maximizes return as you get the highest premiums and the difference between the strikes.

I’ll hold this for a year to see if it performs similarly to HYLD.

I wanted to be aggressive with more of my money and wanted to reduce my number of holdings. So this will hopefully do that. It’s a small holding at less than 1% of my portfolio.