Horizons Enhanced Income Energy ETF (ENCC.TO)…

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Horizons Enhanced Income Energy ETF (ENCC.TO)

12.83

-0.11 (0.81%)

as of Sep 4, 2026, 7:55:04 pm Market Open.

59 watching

Investor Insights

Sep 4, 2026, 12:00 am

This summary was created by AI, based on 6 opinions in the last 12 months.

Horizons Enhanced Income Energy ETF (ENCC) is recognized for its unique approach by integrating covered call strategies to provide income while capping upside potential. This makes it particularly suitable for investors seeking a more risk-adjusted approach to oil exposure compared to traditional growth-focused ETFs like XEG. While ENCC offers a high yield around 14%, there are concerns about sustainability, as experts suggest a yield of 9-10% is more optimal. The fund has performed modestly over the years, with a historical context indicating that long-term holders may still struggle to break even. Comparatively, when evaluated against similar ETFs, such as ZEO, ENCC's returns have been slightly lower, yet it continues to attract interest as a tool for generating income amidst fluctuating oil prices.

Consensus

Cautious

Valuation

Overvalued

Similar

ZEO

BUY

Energy stocks are likely to hold firm in the coming months. Not interested in the long run because of green energy. Interesting in the short term. Good for trading, look more to solar and wind for long-term investment.

DON'T BUY

Buy, hold or sell? Liked it till recently. Have difficulty seeing any upside with the oil price in Canada. Normally he would say buy it, now he would say look at the US.

COMMENT

This depends on your view of energy. It has a very nice yield. If he wants an energy play and wants to be conservative, he would definitely buy this. In most cases, when he is dealing with a commodity like this, he prefers it to be unhedged with a covered call. On anything that is of a riskier commodity nature, he wants to have the full growth.

DON'T BUY

With the acquisition of COS-T, covered calls won’t benefit after a certain debt. The takeover will probably not benefit an ETF with a covered call.

BUY

Not sure how safe the dividends are. They have inexpensive ETFs based on swaps. He is not concerned that it is derivative-based. It is currency hedged.

COMMENT

An ETF of energy stocks and “covered calls” are written on all the positions. Understand what covered calls are all about. Hypothetically you have stock trading at $28 and you write a covered call option for $30 which will bring in $0.40. The cost is now $27.60 but if the price now goes to $30, then you are obligated to sell. If the stock goes to $35, $40, too bad, you have to sell at $30. Covered calls work wonderful in ranging markets. If you think things are going higher, you don’t want to do covered calls.

BUY

A BMO ZEO with no covered call it yields 3.2 but HEE-T gets it up to 6 or 7% with the covered call strategy. If you think the energy sector is going up over the next year or two, then go with ZEO, otherwise go with HEE, which he thinks may be better for now.

COMMENT

As bond yields have gone down, we have seen a lot of income generating ETF's. This one, like many others, sell Call Options on the securities that they actually hold, which generates a certain stream of income on a regular basis. In the last couple of years, the market has been so volatile that these have tended to underperform their plain vanilla cousins.

BUY

Enhanced Income Energy ETF. If you believe it is compelling to buy oil stocks, which he does, this is a good way to do it, especially for a person who is at or near retirement. You get a margin of safety with the covered call strategy. The only problem is that if it goes up quickly, you won't participate fully on the upside.

COMMENT

Enhanced Income Energy ETF. A covered call writing ETF. The reason there is a 21% distribution is because they are taking all of the option premiums that they sold initially and paying it out to you. That is not a realistic number for covered call writing on a long-term basis. If you own, take half the distribution and reinvest the other half back into the fund.

BUY

Using a lot of covered call writing to get energy exposure. You are paying a little more but you get the income from the covered call strategy. A very conservative way to get exposure to oil patch for the long term. Prefers this to writing your own covered calls.

BUY

Enhanced Income Energy ETF. Write covered calls against energy names. Looks interesting at this point but not aware of what the dividend is. A decent time to be buying as you are going to get some pretty good premiums on the calls you are selling because of the underlying.

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Horizons Enhanced Income Energy ETF (ENCC.TO)