Video summary

The PII Magnificent 10: CORE Foundational Income ETFs to BUY & HOLD Forever in 2026

Main summary

Key takeaways

Finance

Disclaimers / Framing

  • Educational/entertainment only; not financial advice.
  • The creator states they are not a registered financial adviser.
  • The video describes a “Magnificent 10” list of Canadian income ETFs, intended (in the author’s opinion) as core, foundational buy-and-hold positions.

Stated Selection Criteria (Methodology)

  • Must be an ETF
    • The author notes exceptions exist (e.g., EIT-type funds), but they are excluded from this list.
  • Must use modest leverage, specifically 25% or 33%
    • Intended to offset underperformance the author associates with standard covered-call strategies without leverage.
  • Must be sector diversified
    • The author emphasizes sector diversification more than geographic diversification.
  • Must have stable / reliable / growing distributions
    • Distribution cuts are viewed negatively.
  • Must have at least 1 year of track record (longer preferred).
  • Covered-call ETFs generally must meet the 25–33% leverage requirement.

“Magnificent 10” ETFs (Tickers Mentioned)

Core Hamilton / Harvest / Brampton / Global X Components

  1. HD — Hamilton Enhanced Canadian Cover Call ETF

    • Described as the “undisputed king” with ~25% leverage.
    • Focus:
      • Canada exposure (mimics S&P/TSX60)
      • Plus US elements via underlying Hamilton ETFs
    • Distribution history (as stated):
      • 15 distribution increases
      • 0 reductions
      • 0 cuts
    • Yield referenced: ~10%
      • Also mentions a path from 11.75 → 19.4 (units not fully specified in subtitles).

  2. HYLD — Hamilton Enhanced US Cover Call ETF (Canadian-hedged version)

    • Framed as an S&P 500 equivalent / more concentrated version
    • ~25% leverage
    • Hedging note:
      • HYLD.TO = hedged to CAD
      • HYLD.U exists as USD/unhedged
    • Distribution notes:
      • Started around 13.75
      • Reduced to 12
      • Then increased steadily to ~16
    • Yield referenced: ~10% (“around the 10% mark”)
      • Mentioned as “lower yielding” than some others in the list.

  3. HDIF (subtitles inconsistent) / HDF? — “Harvest all-in-one” using Harvest components

    • Subtitles indicate “HDiff”; described as a Harvest all-in-one solution.
    • Coverage described:
      • Exposures across US + Canada + tech + healthcare
    • Yield: ~10–12% (CAD hedged)
    • Distribution history cited (with timing explicit; units/metric unclear):
      • Started around 7.08 cents
      • Raised in mid-2024
      • Same in 2025
      • Increased to ~9 cents in 2026

  4. BMAX — Brompton all-in-one

    • Uses 33% leverage (the author notes it’s the only one at 33% vs 25% in the rest).
    • Includes ~22% fixed income/bonds
      • The author is not a fan of fixed income generally.
    • Yield: “typically about ~10%.”
    • Distribution history referenced:
      • Started around 10 cents, then raised to 12, 12.5, and 13 (values referenced in subtitles)
    • Fixed-income components explicitly mentioned:
      • SPLT (preferred shares split fund)
      • A US preferred-share fund “partnered with Fleherty…” (ticker not fully stated)
      • Brompton Wellington Square Investment focused on CLOs (ticker not fully stated)
    • Equity/sector pieces mentioned (often described rather than clearly ticked):
      • Utilities/healthcare/low-volatility style exposure
      • Dividend growth, infrastructure, etc.

Global X “Index Kings” Covered-Call With Leverage (Explicit Tickrs)

  1. USCL — Global X S&P 500 covered call + 25% leverage

    • Framed as “officially the S&P 500” (with covered calls + leverage)
    • Yield: ~12%
    • Distribution path: about 23 cents (2023) → ~25 cents later

  2. QQCL — Global X NASDAQ 100 covered call + 25% leverage

    • Similar structure to USCL but NASDAQ 100
    • Yield:
      • ~14% yield range
      • Subtitles also mention:
        • “about 2% higher yield”
        • “2% higher volatility” than USCL
    • Distribution history: 25 cents (2023) → 31.5 cents (by 2026) (units not specified)

  3. EQCL — Global X “whole world” covered call + leverage

    • Described as equivalent to X/VEQT/VFV-like “whole world” with covered calls + leverage
    • Allocation described:
      • 35%: covered-call version of S&P 500 (USCC referenced)
      • 6.81%: covered-call NASDAQ 100
      • Russell 2000 component
      • International developed via EAC (MSCI EAFE-like coverage)
      • Canada via TSX60 (described as ~20%)
      • Small emerging via EMCC
    • Yield: typically ~10–12%
    • Distribution history: 19.5 cents → 23.5 cents (possible fluctuations mentioned)

More Niche / Concentrated “Magnificent” 8–10

  1. HHIS — Harvest High Income Shares (leveraged all-in-one holding of single-stock covered-call ETFs)

    • Framed as a concentrated NASDAQ 100 analogy
    • ~20 stocks, more tech-heavy, higher-growth/hot-name tilt
    • Crypto-linked exposure mentioned via named companies in subtitles:
      • Circle Strategy, Coinbase, Reddit, SpaceX (tickers not provided)
    • Not hedged to CAD (explicitly stated)
    • Yield: very high, typically ~26–30%
    • Reason given: covered calls on high-volatility individual stocks create more premium
    • Leverage: ~25%
      • Author notes the unleveraged version HHI is in HDIF, and that HDIF has 25% leverage overall.

  2. Class A — Canadian split-share structure (ticker unclear in subtitles)

    • Newer ETF (around ~1 year in market)
    • Uses Canadian split share mechanics (leverage carried by the Class A share)
    • Concentration risk:
      • ~72% financials
    • Distribution history: 13 cents → 18 cents → 23.15 cents (quarterly reviews)
    • Leverage likely higher than 25/33%
      • Split funds can carry higher leverage; author avoids an exact figure.
    • Financial holdings described (tickers inconsistent in subtitles, constituents named):
      • Life and bank (largest)
      • Brompton Split Bank
      • Dividend 15 (Quadrovest) and North American Financial 15
      • Brompton Life Co split
      • ESP split (Enbridge-focused)
      • GDV (global dividend) referenced

  3. ETCHY / ETHC (Canadian dividend, concentrated version; ticker appears as “Etchy”)

    • Very concentrated: 13 companies
    • Sector snapshot:
      • Largest in energy & financials
      • ~16% technology, plus gold/materials
    • Notable holdings (as described):
      • ~30% TD + RBC
      • Enbridge (pipeline mention)
      • Energy producers: Suncor, Canadian Natural
      • CN Rail, Shopify
      • Gold: Barrick, Kinross
      • Uranium: Cameco / uranium referenced (ticker not explicit)
      • Bell, Constellation Software, Celestica
    • Yield: typically ~15% (range 15–17% stated)
    • Leverage: 25% (as stated in subtitles)

Additional Ticketers / Instruments Referenced (Not Necessarily in the “10”)

  • EIT.U (Canoe EIT Income Fund)

    • Mentioned as a potential candidate but excluded from the list.

  • Underlying Hamilton covered-call ETF components referenced within HD/HYLD:

    • QAX, QDAY
    • HFIN, HMAX, HUT / UMAC / HUTs (subtitles: “HFIN UMAC and HUTs”)
    • AAX
    • QMAX
    • UMAX, HUTs (utilities/telecom/pipelines/electric providers mentioned)
    • “Ceday” (described as dividend stock mix; ticker unclear)

  • Comparable/benchmark ETFs for the Canadian “concentrated TSX60” concept:

    • CNCL (TSX60 with covered calls + leverage)
    • CDay (Hamilton-like “Canada day” series; high yield mentioned)
    • HHIC (Canadian version of HHIS)
    • CANY (20-stock Canada all-in-one)
    • ZWC (Brompton Canadian dividend covered call vs XIU benchmark)
    • XIU (TSX60 benchmark referenced)

  • Comparisons used for HHIS performance:

    • QQC (NASDAQ 100 covered call benchmark)
    • VFV (S&P 500 benchmark in Canada context)
    • QQCL, USCL referenced in return comparisons

  • BMAX fixed-income parts (mentioned):

    • SPLT
    • CLO-related vehicle (name mentioned; ticker not clearly stated)

Key Numbers, Timelines, and Performance Metrics (As Stated)

Leverage

  • HD/HYLD leverage: 25%
  • BMAX leverage: 33%

Global X Yield / Distribution Notes

  • USCL
    • Yield: ~12%
    • Distributions cited around 23–25 cents across 2023–mid/late 2024/2025 range
  • QQCL
    • Yield: ~14% yield range
    • “~2% higher yield” and “~2% higher volatility” than USCL
  • EQCL
    • Yield: ~10–12%
    • Distributions: 19.5 → 23.5 cents

Other Yield Highlights

  • HHIS
    • Yield: ~26–30% (highest in the set)
  • ETCY / Etchy
    • Yield: ~15%
  • Class A
    • Distribution values provided, but yield not clearly stated; heavy financials concentration

Track Record / Timing

  • Total return comparisons discussed across roughly Oct 2023 to “now”:
    • About ~3 years for the first 7 funds
    • Newer funds (Class A / ETCHY / HHIS) have ~1 year or less, affecting short-window rankings.

Qualitative Ranking (As Stated)

  • For the first 7 funds (as of the window described):
    • HD #1
    • QQCL #2
    • HYLD and USCL next (3rd/4th)
    • EQCL
    • HDF/HDIF
    • BMAX last
  • When adding Class A, HHIS, ETCHY:
    • Class A “brutalizing/annihilating” others in the short window
    • ETCY/Etchy also ranks well
    • HHIS lower in the shorter period (timing), but “since inception” described as outperforming benchmarks

Explicit Recommendations / Cautions

Recommendations (Author’s Opinion)

  • The author recommends these as core foundational “buy and hold forever” positions in an income portfolio.

Cautions / Risks Highlighted

  • Fixed income exposure (notably via BMAX) may reduce volatility but could also reduce total return
    • Author suggests stocks outperform fixed income long-term.
  • Concentration risk
    • HHIS: tech-heavy, more volatile, higher-risk names; includes crypto-linked exposure
    • Class A: ~72% financials, more exposed to financial sector drawdowns
    • ETCHY/Etchy: only 13 holdings, with heavy energy + financial concentration

Presenters / Sources

  • Presenter/author: The channel creator, Passive Income Investing (PII) (referenced throughout the transcript).
  • Sponsors: The transcript states there is no sponsor for the video.

Original video