Uncertainty continues to grip the bond market as shifting economic policies, geopolitical tensions, and the hypersensitivity to the Federal Reserve’s next move keep volatility elevated. With a new U.S. administration, ongoing policy uncertainty, and lingering concerns over inflation and tariffs, investors are facing a fixed-income landscape where volatility appears likely persist well into 2025.

While this poses challenges for traditional bond investors, it may present an opportunity. The Hamilton U.S. Bond YIELD MAXIMIZER™ ETF (HBND) is designed to capitalize on this volatility, using an active covered call strategy to generate higher monthly income. For investors looking to turn uncertainty into an advantage, HBND offers a compelling way to navigate today’s complex bond market while maximizing income in a tax-efficient manner.

Volatility as an Opportunity

Fixed income volatility remains elevated, as reflected in the ICE BofA MOVE Index (sometimes referred to as the “VIX of bonds”), an index which gauges the level of volatility in the U.S. Treasury market. While volatility can be a risk for long-term bonds, it can benefit a covered call strategy by increasing option premiums. Since the Great Financial Crisis, bond market volatility has been suppressed by central bank interventions like quantitative easing (QE). However, we believe QE is unlikely to return and bond market volatility is expected to remain higher for longer. This environment creates a favourable setting for a bond covered call strategy, helping investors maximize income.

HBND— Maximize Monthly Income from Long-Term U.S. Treasuries

The Hamilton U.S. Bond YIELD MAXIMIZER™ ETF (HBND) provides high monthly income from exposure to long-term U.S. Treasuries and an active covered call strategy. This approach capitalizes on bond market volatility, generating additional tax-efficient income for investors. We believe HBND is a compelling solution in today’s uncertain environment as it combines the strength and security of U.S. treasuries with the higher income and tax efficiency from a covered call strategy.

HBND—Key Benefits for Investors

• 10.99% Yield¹: Higher monthly income compared to traditional fixed income
• Tax Efficiency: Covered call premiums are typically taxed as capital gains, improving after-tax returns
• Dynamic Strategy: Flexible coverage ratio to balance income generation with potential price appreciation
• Experience Matters: Managed by a team with 40+ years of combined options investment expertise
• Investor Choice: Available in CDN$ Hedged (HBND) and US$ Unhedged (HBND.U) units

With long-term Treasuries at historic lows and potential rate cuts ahead, we believe HBND offers an attractive way to access high-quality bonds while boosting income in a tax-efficient manner.

HBIL — A Shorter Duration Alternative

For those investors looking for bond exposure with lower duration risk, the Hamilton U.S. T-Bill YIELD MAXIMIZER™ ETF (HBIL) provides an alternative focused on short-term U.S. Treasuries while employing a similar income-first covered call strategy. Also available in US$ Unhedged (HBIL.U) units.

HBND Performance

TICKER	YIELD¹	1 MONTH	3 MONTH	6 MONTH	YTD	1 YEAR	INCEPTION*
HBND	10.99%	4.93%	-0.91%	-2.46%	5.35%	1.33%	1.56%

*Annualized

For additional information on our suite of YIELD MAXIMIZER™ ETFs, please CLICK HERE.

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A word on trading liquidity for ETFs …

Hamilton ETFs are highly liquid ETFs that can be purchased and sold easily. ETFs are as liquid as their underlying holdings and the underlying holdings trade millions of shares each day.

How does that work? When ETF investors are buying (or selling) in the market, they may transact with another ETF investor or a market maker for the ETF. At all times, even if daily volume appears low, there is a market maker – typically a large bank-owned investment dealer – willing to fill the other side of the ETF order (at net asset value plus a spread). The market maker then subscribes to create or redeem units in the ETF from the ETF manager (e.g., Hamilton ETFs), who purchases or sells the underlying holdings for the ETF.

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Commissions, management fees and expenses all may be associated with investments in exchange traded funds (ETFs) managed by Hamilton ETFs. Please read the prospectus before investing. Indicated rates of return are the historical annual compounded total returns including changes in per unit value and reinvestment of all dividends or distributions and does not take into account sales, redemptions, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. Only the returns for periods of one year or greater are annualized returns. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained in this website may constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Hamilton ETFs undertakes no obligation to update publicly or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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[1]  An estimate of the annualized yield an investor would receive if the most recent distribution remained unchanged for the next 12 months, stated as a percentage of the price per unit on February 28, 2025. The yield calculation excludes any additional year end distributions and does not include reinvested distributions.