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Healthcare Leaders Income ETFHHL.TOCOMMENTMar 13, 2017Stock price when the opinion was issued
As of Jun 19, 2026. Market Open.
It was strictly a yield play when interest rates were so low. He has only a small position. Growth in the ETF can be somewhat restrained by the covered call structure. It's a tradeoff between yield and growth. He's still bullish on the healthcare sector, the demographics are beautiful.
Invests in healthcare issuers, a space he likes. Healthcare offers growth and defence and does well in late cycles and recessions. Pays enhanced dividends, too, with options totalling 8.7% dividends. The MER is around 1%, which is a little high. Covered calls do well in flat or down markets. Covered calls are also very tax efficient.
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.