
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.
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.
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.