
TSE:HHL
This summary was created by AI, based on 3 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) is currently positioned as a solid option for investors seeking income through a balanced approach in the healthcare sector, which has faced challenges recently. Amidst the ongoing discontent towards U.S. health insurance companies, experts suggest MCK, a drug distributor, as a noteworthy healthcare investment. HHL-T holds a diverse portfolio containing approximately 20-23 major global healthcare companies on an equal weight basis, with significant investments in pharmaceuticals, healthcare equipment, and biotech. Though its management expense ratio is around 1%, considered a bit pricey, the ETF offers added value by engaging in covered writing, generating extra income. With an appealing entry point for investors and the potential for market normalization, especially in light of demographic trends, HHL-T presents an interesting option for those looking to complement their Canadian-centric portfolios with exposure to the less economically sensitive healthcare sector.
It was strictly a yield play when interest rates were so low. He has only a small position. Growth in the ETF can be somewhat restrained by the covered call structure. It's a tradeoff between yield and growth. He's still bullish on the healthcare sector, the demographics are beautiful.
Invests in healthcare issuers, a space he likes. Healthcare offers growth and defence and does well in late cycles and recessions. Pays enhanced dividends, too, with options totalling 8.7% dividends. The MER is around 1%, which is a little high. Covered calls do well in flat or down markets. Covered calls are also very tax efficient.
Healthcare sector lagging in the market, and is due for an increase in value. Very large companies with tailwind in aging population/demand for healthcare. Covered call strategy adds to yield. Good option for investors going forward.