
TSE:HHL
This summary was created by AI, based on 4 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) is positioned within a challenging U.S. healthcare sector that is experiencing pressure due to various factors, including public sentiment towards health insurance companies. This ETF holds around 20-23 large healthcare names on an equal-weight basis, with a significant portion in pharmaceuticals and healthcare equipment. While the management expense ratio (MER) is approximately 1%, making it somewhat pricey, the strategy of covered writing in the portfolio generates additional income, adding value for investors. Despite recent struggles, the ETF offers good diversification, especially for Canadian-centric portfolios. Experts suggest that this ETF could be part of a balanced strategy for both income and growth, particularly with favorable demographic trends despite the challenges presented by political factors and market volatility.
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.