Investing in long-term bond Exchange Traded Funds (ETFs) is one of the easiest ways to protect your portfolio returns. Bond ETFs provide investors with regular returns and give apt diversification with minimal risk. Harvest Premium Yield Treasury ETF Trust Unit A (TSE:HPYT) and Horizons Long-Term U.S. Treasury Premium Yield ETF Trust Unit A (TSE:LPAY) are two such long-term Canadian bond ETFs that give investors exposure to fixed-income securities, ensuring steady returns. Let’s look at the two ETFs in detail.
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Harvest Premium Yield Treasury ETF Trust Unit A (TSE:HPYT)
Harvest Premium Yield Treasury ETF Trust Unit A seeks to provide investors with regular monthly distributions by investing in a portfolio of ETFs that offer exposure to long-term U.S. Treasury bonds listed on an American stock exchange. HPYT also writes covered call options on up to 100% of the portfolio.
HPYT was founded in September 2023 and has an expense ratio of 0.45%. This ETF currently has a monthly distribution of C$0.15 per unit. As of date, HPYT has an AUM (assets under management) of C$493.91 million. Year-to-date, HPYT ETF has generated negative returns of 2.9%.
Horizons Long-Term U.S. Treasury Premium Yield ETF Trust Unit A (TSE:LPAY)
Horizons Long-Term U.S. Treasury Premium Yield ETF Trust Unit A ETF seeks to provide exposure to a portfolio of U.S. Treasury securities with a minimum duration of 10 years. LPAY also seeks to pay a monthly distribution in the form of interest income and option premiums.
LPAY ETF was founded in October 2023 and carries an expense ratio of 0.25%. LPAY paid the most recent distribution of C$0.175 per unit, reflecting an annualized yield of 11.01%. As of date, LPAY has an AUM of C$41.39 million. Year-to-date, LPAY ETF has gained a minor 0.79%.
Ending Thoughts
Investing in high-grade, U.S. Government securities and Treasury bills could prove to be an attractive way to protect your portfolio returns amid an uncertain macro environment. Investors can consider the HPYT and LPAY ETFs to gain such exposure after thorough research.
