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Horizons Enhanced Income Energy ETF (ENCC-T) presents an interesting investment approach, particularly for those looking to add to their portfolios during market weaknesses. Experts note the potential of using optionality strategies, such as writing puts, to generate income while acquiring energy companies at lower prices. Despite concerns about a harder economic landing affecting oil prices, the ETF is gaining traction for its diversity across the energy sector, especially as it offers exposure to natural gas, which holds bullish prospects amidst changing political landscapes in Canada. The covered call component allows investors to retain some upside, albeit paired with a 0.84% management expense ratio. With a strategy focused on an equal-weight index in energy, this ETF is seen as a method to spread investment risk more effectively compared to more concentrated approaches.
This depends on your view of energy. It has a very nice yield. If he wants an energy play and wants to be conservative, he would definitely buy this. In most cases, when he is dealing with a commodity like this, he prefers it to be unhedged with a covered call. On anything that is of a riskier commodity nature, he wants to have the full growth.
An ETF of energy stocks and “covered calls” are written on all the positions. Understand what covered calls are all about. Hypothetically you have stock trading at $28 and you write a covered call option for $30 which will bring in $0.40. The cost is now $27.60 but if the price now goes to $30, then you are obligated to sell. If the stock goes to $35, $40, too bad, you have to sell at $30. Covered calls work wonderful in ranging markets. If you think things are going higher, you don’t want to do covered calls.
Horizons Enhanced Income Energy ETF is a Canadian stock, trading under the symbol ENCC-T on the Toronto Stock Exchange (ENCC-CT). It is usually referred to as TSX:ENCC or ENCC-T
In the last year, 2 stock analysts published opinions about ENCC-T. 2 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Horizons Enhanced Income Energy ETF.
Horizons Enhanced Income Energy ETF was recommended as a Top Pick by on . Read the latest stock experts ratings for Horizons Enhanced Income Energy ETF.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
2 stock analysts on Stockchase covered Horizons Enhanced Income Energy ETF In the last year. It is a trending stock that is worth watching.
On 2025-05-05, Horizons Enhanced Income Energy ETF (ENCC-T) stock closed at a price of $9.875.
He likes the idea of adding on weakness, that's what he's been doing. He uses a lot of optionality in his portfolios. So he's writing puts in the energy sector to acquire companies; if they don't go to those prices, he just earns the income. He's perfectly happy with a strategy like that at this point.
If we get a harder economic landing at some point, then oil has some more downside. The US outlook for crude oil demand was just downgraded. We're in a trading range, and he's accumulating into weakness.