Canadian ETF · AQR Canada (USD basis) RETURNS IN CAD

HDIV — Hamilton Enhanced Canadian Covered Call ETF

Fund overlap 2021-Aug → 2026-Feb (55 months) · Backtest basis 1989-Jul → 2026-Feb (440 months) · Adj. R² 0.893 · AUM C$1,462M · MER 0.65%
Structural context first: age and backtest basis explain how much live history is available versus how far the winning factor model can be replayed. Then fit, scale, cost, valuation, and payoff metrics show whether this is a clean, investable expression of the exposure it claims to deliver.
Age
4.6 years
2021-Aug → 2026-Feb
Short live history
Backtest Basis
36.7 years
1989-Jul → 2026-Feb
Moderate historical basis
Adj. R²
0.893
Good model fit
AUM
C$1.5B
Mid-sized live fund
MER
0.65%
High cost
Dividend valuation
110
Somewhat rich
110
80 90 100 110 120+
9.66% Current recurring yield
100 = median · below 100 inexpensive · above 100 rich Dividend valuation scale
Backtested Rel. Sharpe
1.05×
Above market hurdle
R
0.5 1.0 1.3 1.8
Relative to a plain market benchmark. 1.0 = market-like risk-adjusted return; above 1.0 clears the market hurdle.
Smart-β Net
-0.22%
Negative value-add
S
-3% 0% 2.5% 4.5%
Annualized non-market factor contribution plus alpha. Above 0% means the smart-beta sleeve added value over plain market exposure.

What HDIV Is

HDIV.TO (Hamilton Enhanced Canadian Covered Call ETF) is a Canadian equity (canadian) ETF with $1.5B in assets, regressed on the AQR Canada (USD basis) over 55 months. The fund carries near-neutral non-market exposures. Backtested-simulation excess return is +6.55% annualized; the in-sample realized excess was +14.45%.

Why HDIV Ranks This Way

  • Backtested relative Sharpe is 1.05, above the market's 1.00 benchmark.
  • Realized relative Sharpe is 0.99 over the fund's 55-month live sample.
  • Strongest non-market tilts point toward value (hml) (β=0.14) and away from size (smb) (β=-0.13).
  • Dividend valuation is close to its historical median at 110 on a 100 median scale.
Best-fit classification
Canada Equity AQR Canada (USD basis) Regression basis: USD Return basis: CAD Adj. R² 0.893 Fit window: 55M Backtest basis: 440M

This fund is classified as Canada Equity because that factor set produced the strongest accepted fit. Backtested figures use the winning model's full factor history (1989-Jul → 2026-Feb, 440 months), while the betas themselves are estimated over the fund-overlap window (55 months).

Factor return decomposition
Each bar = βi × factor return, geometrically annualized. Summary rows are computed from the combined monthly series they name.
Model: AQR Canada (USD basis)
Sharpe — Backtested Sim.
0.403
Rel. to market: 1.052
Sharpe — Realized
0.952
Rel. to market: 0.994
How are these computed?

Currency basis: returns and factor contributions on this page are in CAD. AQR Canadian factor set, restated to CAD basis. MKT_CAN rebuilt as (R_TSX_CAD − Rf_CAD); the FX inversion uses the same end-of-month CAD/USD series the pipeline uses for USD translations elsewhere, so the CAD basis is the exact algebraic inverse of the USD basis. Rf_CAD is FRED series IR3TIB01CAM156N (3-month Canadian interbank rate, OECD monthly, 1956→present). We use interbank rather than 3M T-Bill because no free T-Bill series covers the full AQR factor history; the spread is typically 10–30 bp and is absorbed into alpha. Long-short factors (Size/Value/Quality/Momentum) are first-order FX-neutral and used as published.

Classification winner: AQR Canada (USD basis) with Adj. R² 0.893.

Factor context panel: each non-market row compares the current fund with stronger-fit public peers using AQR Canada (USD basis). Beta mode shows raw loadings, percentile mode ranks the fund within the positive-exposure subset, and the linked ticker points to the strongest peer in that factor.

Backtested Sim. applies HDIV's regression betas to the full factor history (1989-Jul → 2026-Feb, 440 months). Individual factor bars show separately annualized sleeves, while the subtotal rows are computed from the combined monthly non-market and smart-beta series directly. The Sharpe uses HDIV's realized in-sample volatility as the denominator — a deliberately conservative choice, since fixed-loading factor returns are smoother than what any real fund actually delivers.

Realized applies the same betas to the factor returns observed during HDIV's lifetime only (2021-Aug → 2026-Feb). The Sharpe is the fund's actual excess return over its actual volatility. Full methodology →

Factor exposure context
Each non-market row compares this fund with stronger-fit public peers using AQR Canada (USD basis). This family is too thin for stable percentile ranking across every factor row, so the panel stays on raw factor beta with significance and leader context.
Compared against 22 funds using AQR Canada (USD basis)
Peer filter: Equity-like public peers · AUM floor · 24M+ history · Adj. R² > 0.80 · |βmkt−1| < 0.25 · Non-Mkt > 0
β scale only for this family
Peer depth is too thin for stable percentile ranking across every factor row, so this panel stays on raw β scale.
SMB
-0.20
0
0.10
0.20
0.30
0.40
0
20
40
60
80
90
100
0
2
4
6
8
β -0.13
rank n/a
t -1.4
Peer depth too thin for percentile ranking · Leader: DGRC.TO
HML
-0.20
0
0.10
0.20
0.30
0.40
0
20
40
60
80
90
100
0
2
4
6
8
β +0.14
rank n/a
t +2.5
Peer depth too thin for percentile ranking · Top quartile begins at β +0.21 · Leader: DRFC.TO
QMJ
-0.20
0
0.10
0.20
0.30
0.40
0
20
40
60
80
90
100
0
2
4
6
8
β +0.04
rank n/a
t +0.5
Peer depth too thin for percentile ranking · Top decile begins at β +0.24 · Leader: FST.TO
UMD
-0.20
0
0.10
0.20
0.30
0.40
0
20
40
60
80
90
100
0
2
4
6
8
β -0.01
rank n/a
t -0.2
Peer depth too thin for percentile ranking · Leader: DRFC.TO
Factor exposures
Factor β t-stat Backtested % Realized %
Size (SMB) -0.126 -1.44 +0.00% -0.01%
Value (HML) 0.141 2.53 +0.97% +2.20%
Quality (QMJ) 0.038 0.46 +0.31% +0.02%
Momentum (UMD) -0.011 -0.22 -0.18% -0.27%
Non-Market Factor Contribution · combined non-market series +1.10% +1.94%
Alpha (intercept) — -0.46 -1.30%
Smart-Beta Net · combined non-market series + alpha -0.22% +0.62%
+ Mkt-RF contribution · market 1.196 17.19 +6.65% +13.85%
= Total excess return +6.55% +14.45%
+ Rf base (%) 3.46% → 10.01% total 3.16% → 17.61% total
Fund snapshot
Issuer
—
Asset class
Equity (Canadian)
Inception
2021-07-21
Dividend yield
9.66%
Div CAGR
11.09%
Dividend valuation
110 (100=median)
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All Canadian Leaders Canadian Universe Methodology

FAQ

What does this HDIV ETF page measure?

This page evaluates HDIV using factor regressions, relative Sharpe, valuation, and peer context. It is designed for ETF due diligence rather than quote tracking.

Why can Backtested Sim. and Realized differ?

Both views use the same estimated betas. The difference is the return window: Backtested Sim. applies them to the full factor history, while Realized applies them only during the fund's live sample.

Why might a high-return fund still look weak here?

A fund can post strong raw returns and still look unattractive on this screen if its non-market factor capture is weak, its implementation drag is high, or its volatility-adjusted return profile is weaker than the market.

How should Canadian investors use this page?

Use it as a starting point for ETF selection: check whether the fund's live behavior, valuation, and peer context line up with the story the product label implies.

Research disclaimer

Factor decomposition shows what HDIV's historical betas would have earned under each scenario — not a forecast, not investment advice. Backtested simulation assumes loadings stay fixed across the long sample, which is unrealistic for any real-world fund. Use this as one input to ETF due diligence, not a substitute for it.

Important context

VerifiedBeta publishes educational ETF research, not personalized investment advice, portfolio management, or security recommendations. Funds that screen well here can still be unsuitable for your objectives, taxes, liquidity needs, or constraints. Review fund documents, methodology assumptions, and your own circumstances before acting. See the full disclaimer.