Stan Wong Healthcare Leaders Income ETF HHL-T BUY Jun 23, 2022

Blue-chip basket of US healthcare names. Covered calls and leverage. Covered calls trade potential upside for potential income. If investor's ACB has gone down, could be because of return of capital.

Good for healthcare exposure with dividend. Won't get high capital gains. But is a reliable product. 

Great option for income oriented investors. However, would recommend diversifying with other names in portfolio. Overall direction of healthcare sector is strong. 

A good product that can be held. Would recommend as a portion of portfolio. Not a capital appreciation strategy - covered call reduces ability for share to appreciate. 

A covered call ETF so it provides extra income. He's recommended it before. 

The unhedged stock. Is covered call, boosting yield. Healthcare stocks have sold off, like Eli Lilly, though ISRG has done well. Is a lot of change in healthcare amid the change in presidents. So, this sector is sadly on the back burner. If you hold it, you get paid a good dividend as you wait.

It has had the same distribution for the past 10 years and is one of the top performers in the market. It has equity risk with some volatility but pays a consistent monthly distribution. Holds 20 large cap companies with maybe only a couple of changes per year.

They are both relatively safe or stable sectors so you could add both to your portfolio.

Paying about 99 bps MER for a covered call strategy, giving you a 9-10% dividend yield. A lot of investors are really attracted to that yield. But when you compare the covered call strategy against the underlying securities, you'll find that a lot of the time you'll do better just owning the underlying healthcare index. Covered calls mean you get struck out without realizing some of the upside of names in the portfolio.

If you need the income, fine. If not, just own the underlying stocks or index -- pay less in management fees, capture upside. Over time, that will give you a better total return.

He does own healthcare, but in a very specific space. See his Top Picks. Healthcare is fairly undervalued compared to history, mainly because we have many different industries within the healthcare space. Big pharma, biotech, distributors, medical devices, etc. Some are doing extremely well, and some not at all. 

This holds the US' top 20 healthcare companies with a combined market cap larger than the TSX. The changes that Trump and RFK want to make are driving this sector down, lots of negativity. Is very volatile. However, more inflows are coming into this ETF, feeling that the negativity is overdone. Inflows are a good sign.