Investing · ETF deep dive
UMAX Hamilton Utilities Yield Maximizer ETF
The highest stated yield on this list — 13.40% from utilities, pipelines, railways and telecoms under Hamilton’s active call program. Read the name carefully: nearly a quarter of it is railroads.
Best for: Maximum-income investors who want the yield-maximizer approach on defensive infrastructure instead of bank earnings
Pros
- 13.40% annualized monthly distribution, no leverage
- Defensive, hard-asset underliers: regulated utilities, contracted pipelines, two railroads
- Genuinely different book from HMAX/ZWB — pairs with a financials fund without doubling up
Cons
- Only 30.6% of “Utilities Yield Maximizer” is utilities — know what you actually own
- Per-unit distribution has stepped down from $0.175 at launch to $0.150
- A 13.4% target from low-volatility stocks demands heavy call writing — these sectors’ modest upside is largely being sold
What's inside UMAX
| Underlying fund | Weight |
|---|---|
| Pembina PipelinePPL | 8.3% |
| Canadian National RailwayCNR | 8.3% |
| Canadian Pacific Kansas CityCP | 8.2% |
| Brookfield Infrastructure PartnersBIP.UN | 8.2% |
| EnbridgeENB | 8.1% |
| TC EnergyTRP | 8.0% |
| Rogers CommunicationsRCI.B | 7.9% |
| BCEBCE | 7.7% |
| EmeraEMA | 7.7% |
| Hydro OneH | 7.7% |
| FortisFTS | 7.5% |
| TELUST | 7.2% |
| Waste ConnectionsWCN | 6.9% |
Broader than the name: utilities 30.6% · pipelines 24.0% · industrials (rails) 23.0% · communication services 22.4% (Provider sector table, May 29, 2026) · holdings as of May 29, 2026 (13 holdings)
The deep dive
UMAX applies Hamilton’s yield-maximizer machinery — the same “flexible coverage ratio” active call program as HMAX, no leverage — to thirteen pieces of Canadian infrastructure: Enbridge, TC Energy and Pembina in pipelines; CN and CP rail; BCE, Rogers and Telus in telecom; Fortis, Emera, Hydro One and friends in actual utilities. The blend matters: it’s a steadier, more regulated earnings base than financials, and the 13.40% stated yield is the most aggressive income conversion in the major Canadian funds.
The same caveats as HMAX apply, amplified. Utility-type stocks move less than banks, so option premiums per unit of upside surrendered are leaner — sustaining a 13%+ payout means writing calls over most of the book most of the time, which converts nearly all price appreciation into distribution. Hamilton’s own table shows the consequence: $0.175/unit at launch, $0.150 today. Treat the yield as this month’s conversion rate, not a fixed coupon — and remember the tax framing Hamilton itself gives: premiums initially capital gains, ROC reducing your cost base over time.
The rest of the field
The rest of the field, one line each:
- ZWC — the broad-Canada book — 72 dividend payers at 6.48%
- ZWB — the $4.4B Canadian-banks fund, running since 2011
- ZWU — utilities, telecoms and pipelines at 7.09%, US sleeve CAD-hedged
- HMAX — Canadian financials yield-maximized to 11.71%
- HTA — global tech with a 33% write cap, 8.85%
- HHL — US healthcare income at 10.24%, since 2014
Frequently asked questions
What does UMAX hold?
UMAX holds 13 utility, pipeline, rail and telecom stocks with an active call overlay — led by Pembina Pipeline (PPL) at 8.3%, Canadian National Railway (CNR) at 8.3%, Canadian Pacific Kansas City (CP) at 8.2% (as of May 29, 2026 (13 holdings)). Sector mix: Broader than the name: utilities 30.6% · pipelines 24.0% · industrials (rails) 23.0% · communication services 22.4% (provider sector table, may 29, 2026). Weights drift between rebalances — active covered calls — flexible coverage ratio tuned to a target yield (hamilton); no leverage.
What does UMAX cost?
Currently 0.65% management fee; 0.79% published MER (ETF Facts, Aug 2025). Covered-call ETFs are the most expensive mainstream category in Canada — the major funds run 0.71%–0.99% MER, versus 0.11%–0.66% for plain dividend ETFs, because you're paying for an active options program. See the full comparison, and what a ~0.8% fee compounds into with the MER calculator.
Is UMAX's distribution yield the same as a dividend yield?
No — and this is the single most important thing to understand about covered-call funds. UMAX's distribution is the underlying stocks' dividends plus option premium, the cash received for selling away part of the portfolio's upside. The yield is real monthly cash flow, but it is not "income the businesses earned" — part of it is the market paying you today for growth you won't receive later. Providers state the trade plainly (Hamilton: "writing options caps the upside growth potential of the portfolio that is covered, in exchange for a higher yield"). Tax-wise, providers state that option premiums are generally treated initially as capital gains, and distributions often include return of capital, which reduces your adjusted cost base — check the fund's annual tax-character breakdown and consider professional advice for large non-registered positions. The covered-call guide walks the full mechanics.
The bottom line
The most extreme income conversion on this list, applied to the gentlest underlying assets — a deliberate, documented trade of nearly all upside for cash now. Useful as a small income sleeve; misunderstood as a utilities fund. For the same sectors with most upside kept, ZWU writes far less.
This page is for educational purposes only and is not investment advice. Fund facts were verified at Hamilton ETFs's published fact sheets and product pages on June 10, 2026; holdings and weights are point-in-time and drift between rebalances; published MERs may lag recent fee changes (ETF Facts, Aug 2025). We deliberately do not compare or project returns. Read the fund facts document before buying. See our methodology.