Evolve Global Healthcare Enhanced Yield Fund (LIFE.TO)

An "enhanced" ETF, so it writes covered calls to provide income in a portfolio. So it's in a defensive sector with a defensive approach. Nothing wrong with that as part of a portfolio. Covered calls work best with a bit of volatility so that they provide enough of a premium, which might be a bit difficult with healthcare.

Chart shows a trading range over last couple of years. Price is coming up to $19.50 or $20, and he'd expect it to come back into its trading range. Healthcare can actually do well in November. Bodes quite well at this time.

The stocks tend to be a bit lower beta and health care has defensive characteristics. There is also a U.S. version.

Holds large cap healthcare stocks. Shares have fallen due to Trump's plans. This sector will be challenged given regulatory risk. This offers covered calls (which provides downside protection) in addition to dividends and capital gains. 

For extra yield in healthcare, around 9%, because they do some covered writing.

$200M in assets is very thin, not a ton of money in there. In this case, put limit orders when you buy or sell, or you're at the mercy of what someone is offering. On the chart, old support became new resistance. It's going to struggle there, as it's been a couple of years of resistance.

If it breaks out, that's really good news. The trader in him would be selling right now, but there's always the danger that it keeps going up. You have to decide how much you like the prospects of this sector.

Good exposure to healthcare.
60 basis point management fee.
Enhanced yield fund (~8.7%).
Be careful on management fees when calculating total yield. 

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research.  An equal weight global healthcare ETF. A good choice for an ETF that covers the sector. It offers good yield with high quality companies. Potential investors should keep in mind the US elections in November, as the healthcare sector may see increased volatility in the short term. Unlock Premium - Try 5i Free

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.