Q: Dear 5i team.
Are the holdings in these two different enough to hold both? Is the lower mer of life good enough reason to only own it?
Understanding that they are covered call etfs, which non covered call etf would compliment them best to gain upside to sector rallies?
Thanks for your insights.
Are the holdings in these two different enough to hold both? Is the lower mer of life good enough reason to only own it?
Understanding that they are covered call etfs, which non covered call etf would compliment them best to gain upside to sector rallies?
Thanks for your insights.
5i Research Answer:
The portfolios and strategies between LIFE and HHL are extremely similar and we do not see the need to hold both. The yield of both strategies are very similar with LIFE having the slight edge. LIFE's management fee is almost half that of HHL's (0.45% vs 0.85%) but LIFE is also much smaller at $272.9M in net assets vs. HHL at $1.42B in net assets. We would go with HHL here just due to the better liquidity as well as historical outperformance compared to LIFE despite the higher fee.
For a CAD US healthcare ETF we would suggest ZUH. In USD, we like VHT and to a lesser extent IYH.