An Exchange Traded Fund (ETF) is a collection of hundreds or thousands of stocks or bonds in a single fund that trades on major stock exchanges. ETFs combine the diversification of mutual funds with lower investment minimum and real-time pricing. The beauty of ETFs is that they are extremely similar to mutual funds; the difference is you purchase these investments on your own with lower fees!
A covered call ETF writes call options on the stocks held within the fund to help reduce investment risk. This also allows investors to take advantage of upside potential in the same way an individual investor trading stock options would do. This is a great strategy during market volatility while still bringing in monthly income from option writing and regular dividends.
What is the Best Health Care Covered Call ETF in Canada?
- FHI.TO: CI Health Care Giants Covered Call ETF
- FHI-B.TO: CI Health Care Giants Covered Call ETF
- HHL.TO: Harvest Healthcare Leaders Income ETF
- HHL-B.TO: Harvest Healthcare Leaders Income ETF
- HHLE.TO: Harvest Healthcare Leaders Enhanced Income ETF
- HIG.TO: Brompton Global Healthcare Income & Growth ETF
- LIFE.TO: Evolve Global Healthcare Enhanced Yield Fund
- LIFE-B.TO: Evolve Global Healthcare Enhanced Yield Fund
- ZWHC.TO: BMO Covered Call Health Care ETF
Here is a table comparing HHL to similar health care covered call ETFs as of October 31, 2022.
| Manager |  |  |  |  |  | |
| ETF | ZWHC | HIG | FHI.B | LIFE.B | HHL.B | HHLE |
| Inception | 2023-01-23 | 2015-09-24 | 2018-06-07 | 2017-10-25 | 2020-02-27 | 2022-10-25 |
| MER | 0.73% | 0.96% | 0.72% | 0.67% | 0.99% | 2.52% |
| AUM | $12,380,000 | $50,000,000 | $16,840,000 | $271,674,927 | $1,345,070,000 | $21,020,000 |
| 1Y | N/A | -5.9% | -1.7% | 5.65% | 1.17% | -2.41% |
| 3Y | N/A | 2.1% | 12.1% | 6.92% | 12.19% | N/A |
| 5Y | N/A | 4.1% | 9.9% | 8.76% | N/A | N/A |
| 10Y | N/A | N/A | N/A | N/A | N/A | N/A |
