Healthcare Leaders Income ETF (HHL.TO)

The US healthcare bill having failed Friday puts some risk into the sector. He would be fine if it fell back to support levels, but would not step in today, otherwise it is a fine quality holding.

This invests in healthcare related securities, and believes the enhancement comes from an option strategy overlay. Like any other sector, this is fine when it is going up. This ETF tends to have a lot of volatility compared to some of the others. He doesn’t use this, so doesn’t know that much about it. It’s a fine product and he has no issues with it. It has a pretty significant yield, which tends to be what attracts a lot of people. Dividend yield of 8%+ right now.

This is his company’s fund. It hedges its currency and has 20 large cap global healthcare companies. One of the greatest risks in the market right now is individual stock risk.

What is really going to drive outperformance is having some diversification, but over and above that, be able to overweight which sectors will outperform. A passive product is not going to do that for you. It makes sense to own an actively managed product.

They use an option overlay to generate extra yield. It is a great way to play healthcare, which he is bullish on. Nice yield. In a strong equity market you would underperform with the covered call strategy.

Healthcare is a subsector that he believes has the most political risk. As a long-term play, it makes a lot of sense given the aging population globally and the growing biotech industry, that will subject you to the day to day volatility which happens whenever there is a headline out of the US.

(A Top Pick March 6/15. Down 11.55%.) Holds the biggest health care providers globally. Sold his holdings in December before the fall in the markets.

He likes healthcare as a general investment area. They have the better ones and have a covered call overlay. The risk in the US is political, based on pressure on drug prices. The charts look good and it looks like a bottom is developing.

They have a covered call strategy that increases yield. He mistakenly suspected last week that they were returning capital.

Sold this in December, anticipating the decline that was coming. However, healthcare is something that he wants to own on a long-term basis. Right now is a time to be cautious. We should go through a pretty good rally in the next week or so, and at that point he would definitely recommend it.

Still likes this, but is not adding to his position. He likes the dividend. He is waiting to see how much of a correction we are going to get. If we get a correction in the fall, pension funds are going to have to Sell.

A theme that he is very interested in. He doesn’t know what this REIT actually owns, but would assume you will have your pharmaceuticals, and hopefully the bio-technology space. Even if it doesn’t have bio-technology, you might want to look at having this in your portfolio, even at these levels. Yield is 7%, so he presumes they are writing covered calls against these positions.

This company has been coming out with some really interesting products. This gives him a dividend yield of about 8%, because they are writing Covered Calls on a foreign portfolio and it is hedged to currency. This is the top 20 healthcare global companies.

Healthcare is an area that he quite likes. Some of them are more big Pharma companies, while others are more healthcare oriented. Healthcare is a good place to be. (See Top Picks.)