
TSE:HHL
This summary was created by AI, based on 5 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) faces a challenging environment due to pressure on the US healthcare sector, notably from health insurance companies and policies affecting pharma costs. It maintains a diversified portfolio with roughly 20-23 large global healthcare names, focusing on pharmaceuticals (35%), healthcare equipment (25%), and biotech (14%). Experts recommend HHL for its balance of income generation and potential growth, especially when paired with ETFs like XHC for additional growth. Although the sector has been volatile and affected by political factors, some analysts believe the negativity surrounding it might be overdone, and recent inflows into the ETF suggest a rebound could be on the horizon. The demographic trends could further support a recovery as clarity emerges in the US healthcare landscape.
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.