John HoodTech Achievers-A HTA.TODON'T BUYJun 29, 2023
HTA vs. ZQQ
He'd be more cautious of HTA, because if he's going to take the risk of tech, he wants to have the full growth potential of that and not be somewhat coralled by covered calls. On tech, he'd be doing ZQQ.
Growth and income for large tech companies. Very strong performance. Wait to buy when price falls. Not a good short term investment. Need to wait a long time for investment.
He's fairly underweight the tech space. Underperformed the broader market. High yield of 9% or so, but total return hasn't done well. You don't want to be in tech in this part of the cycle. Beyond the first few names, the stocks are expensive. Visibility of earnings and revenue from the smaller-cap names is a bit tougher as well.
Tech & Health Care. If you are going to own one you might as well own both of them. Both are mega caps. These are covered written to get extra income (yield). He would say to go with health care in this case, however, if not both.
Most Harvest ETFs pay a very good yield, because they do the covered call overlay, but some of the charts are choppy. You'd be better off with ZQQ-T. Do you want the straight growth or a covered call?
Harvest is pretty new to ETF space. Takes the best known companies and adds covered call. Problem is that covered calls will most always be outperformed by the companies themselves. Covered calls are great for generating tax-efficient income, but not growth.
He'd be more cautious of HTA, because if he's going to take the risk of tech, he wants to have the full growth potential of that and not be somewhat coralled by covered calls. On tech, he'd be doing ZQQ.