This summary was created by AI, based on 4 opinions in the last 12 months.
The experts have varying opinions on the Horizons Enhanced Income Energy ETF (ENCC-T). One expert believes that the energy sector could move positively due to potential changes in the Canadian government. Another expert notes that ENCC offers more diversified energy exposure compared to XEG, with a focus on natural gas. Additionally, it is mentioned that half of ENCC is a covered call strategy with a MER of 0.84%. However, another expert is wary of the dividend sustainability and recommends it as a short-term option due to the expected strength in oil prices. Overall, the ETF is seen as a potential short-term trade with differing opinions on its long-term viability.
Is more diversified that XEG; ENCC spreads the energy bet more. There's talk of Trump wanting to reduce oil prices, but natural gas prices are probably much more bullish. So Canadian energy companies here offer more nat gas than oil exposure vs. the US.
An equal-weight index in energy, not market cap. Half of this is a covered call strategy, so you keep half the upside. MER of 0.84%.
Dividend (~14%) hard to maintain. In short run, energy a good trade. Expecting strength in oil prices (~$70). Would not recommend for the long term, but good short term option.
Bullish on energy.
Good long term hold.
High dividend yield that can be risky (13%).
Buy, hold or sell? Liked it till recently. Have difficulty seeing any upside with the oil price in Canada. Normally he would say buy it, now he would say look at the US.
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.
With the acquisition of COS-T, covered calls won’t benefit after a certain debt. The takeover will probably not benefit an ETF with a covered call.
Not sure how safe the dividends are. They have inexpensive ETFs based on swaps. He is not concerned that it is derivative-based. It is currency hedged.
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.
A BMO ZEO with no covered call it yields 3.2 but HEE-T gets it up to 6 or 7% with the covered call strategy. If you think the energy sector is going up over the next year or two, then go with ZEO, otherwise go with HEE, which he thinks may be better for now.
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. 1 analyst 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 2025-01-14, Horizons Enhanced Income Energy ETF (ENCC-T) stock closed at a price of $10.93.
Not closely familiar with this one. But in general, the energy sector is one that could start to move positively simply because he thinks there's going to be a change in Canadian government. It might be the place to be.