
TSE:HHL
This summary was created by AI, based on 3 opinions in the last 12 months.
The Healthcare Leaders Income ETF (HHL-T) is currently positioned as a solid option for investors seeking income through a balanced approach in the healthcare sector, which has faced challenges recently. Amidst the ongoing discontent towards U.S. health insurance companies, experts suggest MCK, a drug distributor, as a noteworthy healthcare investment. HHL-T holds a diverse portfolio containing approximately 20-23 major global healthcare companies on an equal weight basis, with significant investments in pharmaceuticals, healthcare equipment, and biotech. Though its management expense ratio is around 1%, considered a bit pricey, the ETF offers added value by engaging in covered writing, generating extra income. With an appealing entry point for investors and the potential for market normalization, especially in light of demographic trends, HHL-T presents an interesting option for those looking to complement their Canadian-centric portfolios with exposure to the less economically sensitive healthcare sector.
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.