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Stockchase Opinions

John HoodHealthcare Leaders Income ETFHHL.TOPAST TOP PICKJun 29, 2023

(A Top Pick May 19/22, Up 6%)

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.

$7.90

Stock price when the opinion was issued

$6.87

As of Jun 19, 2026. Market Open.

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TOP PICK

Healthcare sector lagging in the market, and is due for an increase in value. Very large companies with tailwind in aging population/demand for healthcare. Covered call strategy adds to yield. Good option for investors going forward. 

BUY

Very good for healthcare exposure.
Actively managed with good performance.
High dividend yield (~10%).
Good for long term investors.

DON'T BUY
Covered call. Equal weight basket of mainly 20 US healthcare names. Yield is 8.5%. MER of 99 bps, not as cheap as some of the others. He prefers, and owns, IXJ. IXJ is a basket of global healthcare names, with only a 40 bps MER.
BUY
It's a covered call US healthcare ETF. HC is a growth sector. HHL pays over an 8% dividend, so it's very attractive. The one-year chart shows little growth, so you buy this for the yield. Tailwind: the baby boomers are getting older, and there's a huge backlog of surgeries built up during Covid. Plus immigration. HC is definitely a growth area.
BUY
Good ETF for healthcare exposure (USA and international). Dividend does not qualify for Canadian divided tax credit. Look into tax treatment for each situation.
BUY
Allan Tong’s Discover Picks Among the caveats here is that HHL doesn't offer much growth. HHL is currently trading 30 cents above its 2022 low of $7.55, but its high is only $9.05. If you buy at current levels, add the dividend and subtract the MER, you're collecting a 13.5% return over a year. Not bad in these volatile times. Read 3 Best U.S. Healthcare ETFs for our full analysis.
Unspecified
It is a very large cap fund. Does some covered writing which gives away some upside. Whether you buy or not depends on your view of the health care space. It is 40% pharmaceuticals, 19% health care supplies, 15% health care services.
BUY
Believes healthcare sector is good for investors looking for yield (demand not going away). Not a growth story, but will provide stability.
BUY
Interesting company due to strong yield. Main issue is not as strong of growth as other stocks. Return has been strong regardless. Good for investors looking for income, but not growth.
BUY

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.

BUY ON WEAKNESS

HHL-T vs ZEB-T Canadian banks good long-term investment. European banks good as well. Canada doesn't have much exposure to healthcare stocks but they're going to be part of the future. HHL could be a way to play that. Have to think diversified. Good to make room for both of them in your portfolio.

TOP PICK
Likes the US healthcare industry, as all the aging baby boomers are entering high medical cost years. Covid delayed a lot of elective surgeries, creating a backlog. The yield on this ETF is extraordinary. He's trying this for his yield-oriented investors to make up for abysmal fixed income returns.
COMMENT
Hedged, unhedged, and USD versions. 20 large-cap US healthcare stocks, with a covered call strategy. Dividend comes from underlying securities plus covered calls. Because volatility is up so much, he's writing fewer calls to generate the same cashflow. He doesn't expect any changes to the distribution.
BUY
Would go for the defensive nature and dividend slant of the Harvest fund. It makes sense to be defensive. MER is a little higher but worth it for the active management. It has a longer term growth aspect to it as well.