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Opinions Larry Berman CFA, CMT, CTA
Horizons Enhanced Income Gold ETFHEP.TOCOMMENTDec 17, 2012
Larry Berman CFA, CMT, CTAUnknown
$5.84
Stock price when the opinion was issued
E.T.F.'s
It's the ideal tool to help you make quicker, more informed decisions for managing and tracking your investments.
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PAST TOP PICK
(A Top Pick Jul 16/21, Down 9%) Gold stocks with a covered call.it's a proxy for gold exposure. Gold stocks with a covered call which enhances income and protects from the downside to some degree.
Mike PhilbrickOwned
E.T.F.'s
TOP PICK
Gold and gold ETFs are a meaningful diversifier in a portfolio. The gold prices have languished and he believes HEP provides exposure to gold producers by equal weight, and a cover writing program to enhance yield. 5.72% dividend right now.
Mike PhilbrickOwned
E.T.F.'s
HOLD
A way to extract extra yield from gold miners. With volatility, the enhanced yield is interesting. If you think the price will go sideways, it would be preferable to hold something that generates yield like HEP. However, if you think it will go up, you don't want to give away the upside. Right now, gold probably has some upside in the next 6 - 12 months.
E.T.F.'s
WEAK BUY
Nice thing is they take a portion of the portfolio and write covered calls on it, so you get some income as you go along and it takes out some of the volatility. You underperform a bit, but you get the income. Not the best way if you're bullish on gold. With this ETF, you get the best of both worlds.
E.T.F.'s
PAST TOP PICK
(A Top Pick Aug 01/19, Up 40%) The companies in HEP have outperformed gold itself and will continue to do so. HEP has a covered writing overlay on parts of the portfolio which reduces volatility. It's been parabolic recently, so wait for a pullback.
Mike PhilbrickOwned
E.T.F.'s
BUY
HEP-T vs. XGD-T. HEP-T has a covered call overly to the gold stocks and generates extra yield. If you are bullish then you don’t want that covered call. If you are a yield seeker then it is a fine way to get exposure to gold.
E.T.F.'s
If you are bearish on the sector and you want to generate some income, this is the way to play it. If we see gold above $1800, abandon this.