TSE:HHL

Healthcare Leaders Income ETF (HHL.TO)

7.03
+0.09 (1.30%)
as of Jun 9, 2026, 7:59:59 pm Market Open.
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Investor Insights
star iconJun 9, 2026, 12:00 am

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.

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Consensus
Mixed
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Valuation
Undervalued
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JNJ
BUY
This covers mature companies, covered calls, and yield generators. In the next couple decades, as societies age across the world, healthcare will be a good trend. It is a good long term play.
BUY

LIFE vs. HHL In Canada, we have two similar ETFs holding global healthcare, this and HHL-T. Each holds around 20 megacap stocks, equally weighted. He prefers LIFE because the names it holds are more diverse, but owning either or both is fine. Both feature a covered call a third of their portfolios, which is good, because you want two-thirds to really capture the upside potential in this thriving sector. Who knows which set of stocks within these ETFs will hit? You could own both. Plus, you get a little income.

BUY

Made up of the 20 leading pharma companies. He likes this strategy. It's similar to LIFE-T though there are some differences. The healthcare space is in good shape for growth for years to come. A good growth enhancement name.

BUY

He likes the strategy. Healthcare with options strategies to enhance yield. LIFE-T is also an interesting way to play healthcare. Healthcare should be a growth area over the next few years although a change in government in the US could represent some risk.

BUY
Tech & Health Care. If you are going to own one you might as well own both of them. Both are mega caps. These are covered written to get extra income (yield). He would say to go with health care in this case, however, if not both.
BUY
Health care leaders. It is an active strategy. HHL-T does interesting things like options to generate extra yield and takes a more active view. Healthcare is an interesting space.
HOLD

He does not own this one. They have an effective covered call strategy and he has no issues with the fund at all. He prefers ZUH, where it is not impeded with calls being written.

BUY
The shift in sentiment for the healthcare sector is just starting. The healthcare companies will continue to enjoy rerating. This fund has healthcare and income with just under 400M. It is one of his funds.
WEAK BUY
Covered calls, so you're giving up some growth. Good rate of return, but there must be some leverage in there somewhere. Nothing wrong with the ETF, but in healthcare he prefers to go straight on. Very attractive yield.
HOLD
The down trend broke in October. Healthcare has a seasonality that ends at the end of December. The next resistance is $8.50 and then the $9 range. Stick with it but it will be bumpy over the next couple of months.
BUY
The healthcare sector is in line with aging demographics. A good ETF, but the covered call limits the upside. So, this isn't good if you are bullish health. Also, this ETF will miss opportunities in small caps. But overall, a good ETF.
BUY
Buy the US or Canada ETF? Aging demographics favour this ETF. Don't factor the Canadian election or any election when buying this. If you own the US ETF, then buy the Canadian one for geographic diversification.
BUY
Used to be a closed-end fund. Now a covered call on major U.S. Healthcare. Yield is around 8%. But similar to other covered calls, you are giving up up-side of the healthcare sector. Sacrificing growth for yield. A good dividend play.
TOP PICK

He believes in healthcare as a secular play though this sector is a political hot potato. HC's seasonality is about to start, but you really need to hold this long term.

COMMENT
I hold HHL in US and Canadian 50/50. Should I cash out the American to buy only Canadian? And what if the Democrats win in 2020? Currency is complex in general. Better to hold half-hedged, half-non. Yes, there's some strenght in the CAD. But in a slowdown, the USD is the world currency and will respond well. Also, these companies are well-capitalized and a great place to hide in a slowdown. Owning is USD is better in a slowdown. If the Democrats win in 2020: It's a tough call who will win and what the winner will do to US healthcare.
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