
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.
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.
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.
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.
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.