Fund Overview |
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Overview
Mulvihill Canadian Bank Enhanced Yield ETF “CBNK” provides exposure to the "Big Six" Canadian Banks. Modest leverage of 25% enhances the dividend yields of the underlying stocks and provides additional return potential. Option writing strategies are utilized to enhance portfolio income. The funds pays monthly distributions with a 7% yield target per annum, making CBNK the highest yielding Canadian Bank ETF.
Objectives
Mulvihill Canadian Bank Enhanced Yield ETF seeks to provide the Unitholders with long-term capital appreciation through exposure to a portfolio consisting principally of common shares of Bank of Montreal, The Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, The Toronto-Dominion Bank and National Bank of Canada and pay monthly cash distributions.
| Name |
Ticker |
Current NAV |
Current Yield |
Recent
Distributions |
Most Recent
Distribution Date |
Distributions
Since Inception |
| Mulvihill Canadian Bank Enhanced Yield ETF |
CBNK |
$8.49 |
8.21%
|
$0.06 |
2024-11-29 |
$1.87 |
Top Holdings
Top Holdings as of September 30, 2024
| Holding Name |
% of Fund |
| Canadian Imperial Bank of Commerce |
17.9% |
| Royal Bank of Canada |
17.1% |
| National Bank of Canada |
16.9% |
| Bank of Nova Scotia/The |
16.0% |
| Bank of Montreal |
15.9% |
| Toronto-Dominion Bank/The |
15.8% |
| Premium Income Corp Pfd A |
0.5% |
| Sector Allocations |
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Fund Features
Investment Strategy
The fund will invest, primarily in the common shares of the "Big Six" Canadian Banks. The fund will use modest leverage of 25% to enhance the dividend yields of the underlying stocks and provides additional return potential. Option writing strategies are utilized to enhance portfolio income. The fund will, from time to time employ various investment strategies (described below), including the use of derivative instruments to generate income, reduce portfolio volatility and protect capital. The fund seeks to pay monthly distributions, targeting a 7% yield per annum, with additional capital growth potential beyond such yield target.
The fund may (a) from time to time in response to market conditions write covered call options on individual securities to seek to receive premium income, reduce overall portfolio volatility and enhance the portfolio’s total return, (b) from time to time in response to market conditions write cash-covered put options in respect of individual securities that the fund is permitted to hold and in respect of market indices, in order to receive premium income, reduce overall portfolio volatility and reduce the net cost of acquiring the securities subject to put options, (c) purchase call options in respect of securities in which the fund is permitted to invest, (d) purchase put options on individual securities in its portfolio, indexed put options and unleveraged inverse exchange traded funds that provide exposure to such securities, (e) use derivatives, including but not limited to options, forward contracts, futures contracts and swaps for both hedging and non-hedging purposes to generate income, hedge against losses from changes in the prices of the fund’s investments and market declines (f) hold cash or cash equivalents for strategic reasons or to provide cover for the writing of cash covered put options in respect of securities in which the fund is permitted to invest. Options may be either exchange traded or over-the-counter options.
Distributions
The Fund expects to make distributions monthly that may consist of net income, net realized capital gains and/or return of capital, if any.
Eligibility
RRSPs, DPSPs, RRIFs, RESPs and TFSAs
Management Fees
The Fund pays a management fee of 0.65% of net asset value annually to Mulvihill Capital Management for acting as the Manager and the Investment Manager.
MER
The Management Expense Ratio (“MER”) is the sum of all operating expenses, including management and service fees but excluding portfolio transaction costs, expressed as a percentage of average net asset value.
Inception Date
02/25/2022
Manager
Mulvihill Capital Management Inc.