Investor Insights

This summary was created by AI, based on 5 opinions in the last 12 months.

The Horizons Enhanced Income Energy ETF (ENCC-T) has garnered various insights from experts who express a range of opinions about its current strategy in the energy sector. One expert favors a strategy of adding to positions during market weaknesses, utilizing options to write puts for income generation while waiting for favorable price movements. Another emphasizes the importance of monitoring tariff decisions and suggests the ETF may be a good fit due to its covered call approach, which helps manage risk without relying on leverage. Additionally, some experts believe the energy sector could experience positive shifts, particularly with potential changes in Canadian governance. ENCC's diversification in energy investments and its equal-weight index strategy provide a broader exposure compared to other funds, enhancing its appeal amidst current market conditions.

Consensus
Positive
Valuation
Fair Value
BUY ON WEAKNESS
Add on weakness?

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.

WAIT

He doesn't use leverage so check for it. It has a covered call approach. Wait for a decision on tariffs.

WATCH

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.

BUY

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.

TOP PICK

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%.

HOLD

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. 

HOLD

Bullish on energy.
Good long term hold.
High dividend yield that can be risky (13%).


BUY
Energy stocks are likely to hold firm in the coming months. Not interested in the long run because of green energy. Interesting in the short term. Good for trading, look more to solar and wind for long-term investment.
DON'T BUY

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.

COMMENT

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.

DON'T BUY

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.

BUY

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.

COMMENT

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.

BUY

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.

COMMENT
As bond yields have gone down, we have seen a lot of income generating ETF's. This one, like many others, sell Call Options on the securities that they actually hold, which generates a certain stream of income on a regular basis. In the last couple of years, the market has been so volatile that these have tended to underperform their plain vanilla cousins.
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Horizons Enhanced Income Energy ETF(ENCC-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 2

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 0

Total Signals / Votes : 2

Stockchase rating for Horizons Enhanced Income Energy ETF is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Horizons Enhanced Income Energy ETF(ENCC-T) Frequently Asked Questions

What is Horizons Enhanced Income Energy ETF stock symbol?

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

Is Horizons Enhanced Income Energy ETF a buy or a sell?

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.

Is Horizons Enhanced Income Energy ETF a good investment or a top pick?

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.

Why is Horizons Enhanced Income Energy ETF stock dropping?

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.

Is Horizons Enhanced Income Energy ETF worth watching?

2 stock analysts on Stockchase covered Horizons Enhanced Income Energy ETF In the last year. It is a trending stock that is worth watching.

What is Horizons Enhanced Income Energy ETF stock price?

On 2025-04-01, Horizons Enhanced Income Energy ETF (ENCC-T) stock closed at a price of $10.99.