
TSE:HHL
This summary was created by AI, based on 6 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) holds a diversified portfolio of approximately 20-23 major healthcare companies, with a significant allocation in pharmaceuticals, healthcare equipment, and biotech. Experts recognize the recent pressures on the U.S. healthcare sector, primarily driven by economic factors and concerns around drug pricing, particularly amid political changes. Despite the negativity surrounding the sector, some analysts suggest that the current entry point may be favorable, as they anticipate a market normalization in response to demographic trends. The ETF employs a covered call strategy, offering a compelling dividend yield of 9-10%, but opinions are mixed on whether this strategy outperforms direct ownership of the underlying stocks. Overall, there's a cautious optimism regarding the ETF's potential for income generation and diversification within a broader portfolio.
They use a covered call strategy to enhance the yield. Those who want exposure to healthcare space but want higher yield, it is a good option. If yield is not a concern for you, you're better off with ZUH.
Disclosure: He runs this ETF, 20 equally-weighted large US healthcare stocks. He makes minor adjustments periodically, like selling Gilead recently. He wants diversification across this space. Pays a high dividend, using covered calls for a third of the holdings. This is good if you want US healthcare and regular income with some appreciation.