
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.
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.