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.
233 watching
0
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
DON'T BUY
The yield is extremely good. The problem is that there is not much movement on the upside. He prefer other things with upside potential. The Health Care sector is a good theme.
COMMENT
They find some of the best healthcare stocks and then write options to increase the returns. He likes what they are trying to do. The more volatility in the sector there is, the higher the option premium will be.
COMMENT
A yield of almost 9% and almost all a return of capital? There will be negative impacts on the US healthcare sector. The covered call strategy yields a return as a capital gain. He deferred the callers's question to the manager of the ETF. He thinks this is a good way to get yield in this sector if this is what you want.
DON'T BUY
Big marijuana components in the name. He thinks the mergers in the sector is going to be kind of a zero-sum game for the ETF. He would look into the individual names for potential targets in the smaller names.
COMMENT
No cannabis in this. It's 20 equal-weighted healthcare stocks, the biggest in the world, the mega-caps. Lately this has underperformed the S&P so beware as we head into a rate-sensitive market. It's more risky than your typical ETF.
BUY
Caller looking for a defensive holding. He loves what they are doing – an active approach to healthcare. They write covered calls and can generate capital gains. It should perform well in a downturn. Once we are at a low valuation and they are recovering you don’t want to be in this.
COMMENT
Popular. It has a covered call overlay so it's one of the more pricey ETFs at a 1.37% MER. They do quantitative screens on the healthcare companies they pick.
BUY
It is the healthcare leaders strategy ETF, actively managed with a covered call overlay. He sees a yield of about 9% but the holdings yield 3-4% so the rest is from the options strategy. The yield is sustainable if the managers know what they are doing. He likes the exposure and what they are trying to do.
DON'T BUY

Ignore this one. A recent arrival. Another covered call ETF. Compare it to ZUH or XLB, which are so much cheaper. If you like the healthcare sector, which he would question with the Trump wild card, be careful and pick a mainstream ETF.

DON'T BUY

Health care leaders. They use option strategies to enhance yield. As broad markets turned down in '15/16, this index fell and now that things have recovered, it has done so but less than the market. This is a way to play this space. It is an active strategy and a fine one if you want exposure to healthcare.

BUY

It's been building a base and current levels may rise past $9. He likes this, though it's in a volatile sector. HHL is acting quite well. He'd buy it now, and certainly when it breaks out past $9.

COMMENT

HHL-T vs ZUB: The performance of HHL has been mediocre since 2015. You're buying yield, but not getting growth. But there's nothing wrong with great yield. In ZUB, you get the opposite. Growth vs. yield: Which do you want?

HOLD

An aging population is good for this sector, but this sector is under scrutiny, too. Trump is getting tough on drug prices. That said, healthcare is a good place to be. He wouldn't add to an existing position. Hold no more than 5% in a sector.

BUY

Largely international healthcare companies with an option strategy overlaying it. It is an active strategy. It is a nice combination for exposure to the healthcare sector. It will be a good yielder but not a big grower.

WEAK BUY

He loves covered call strategies. They are very active managers and he thinks they do a very good job of it. The last few years have been an up market in the healthcare market. XLV-N is the broad US healthcare market. You have a much better return with HHL-T because of the dividend as well. It is a good way to hold healthcare late in the cycle.

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