
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.
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.