
TSE:HHL
This summary was created by AI, based on 2 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) is currently navigating a challenging environment within the US healthcare sector, particularly influenced by negative sentiment towards health insurance companies. Despite this, the ETF has an interesting characteristic; its favorite holding, McKesson Corporation (MCK), is a drug distributor that does not directly manufacture products but plays a crucial role in the healthcare supply chain. The fund maintains an equal weight strategy with a diversified portfolio featuring approximately 20-23 large global healthcare names, including significant allocations to pharmaceuticals, healthcare equipment, and biotechnology. While the management expense ratio (MER) is around 1%, which some may consider on the pricier side, the ETF generates additional income through a covered-writing strategy. This element of diversification offers Canadian investors a strategic way to mitigate sector-specific risks in their portfolios.
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.