
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.
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.