The ETF comes with an active strategy to capture potential upside in the sector
Evolve Funds has launched the Evolve Global Healthcare Enhanced Yield ETF on the TSX. Available in hedged (LIFE) and unhedged units (LIFE.B), it is the eighth ETF the firm has listed in Canada.
“LIFE invests in global healthcare companies, complementing our existing product lineup by providing investors with an index-based ETF and an actively managed covered call strategy,” said Raj Lala, president and CEO of Evolve Funds.
The ETF seeks to replicate, to the extent reasonably possible before fees and expenses, the performance of the Solactive Global Healthcare 20 Index Canadian Dollar Hedged, while mitigating downside risk.
While the ETF invests primarily in the equity constituents of the Solactive healthcare index, it can also accommodate covered-call options on up to 33% of the portfolio securities. The level of covered-call option writing may vary based on market volatility and other factors.
“The population is aging, the middle class is increasing, and healthcare technology is advancing,” said Kirk Cooper, the firm’s chief investment officer. “These factors help create demand for global healthcare companies. Active management of covered calls provides a balance between generating yield and participating in any potential upside performance of the sector.”
The firm has previously launched other thematic ETFs on the TSX, including one for cybersecurity (CYBR), one for innovation in the automobile sector (CARS), and one for gender diversity in North American companies (HERS).
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“LIFE invests in global healthcare companies, complementing our existing product lineup by providing investors with an index-based ETF and an actively managed covered call strategy,” said Raj Lala, president and CEO of Evolve Funds.
The ETF seeks to replicate, to the extent reasonably possible before fees and expenses, the performance of the Solactive Global Healthcare 20 Index Canadian Dollar Hedged, while mitigating downside risk.
While the ETF invests primarily in the equity constituents of the Solactive healthcare index, it can also accommodate covered-call options on up to 33% of the portfolio securities. The level of covered-call option writing may vary based on market volatility and other factors.
“The population is aging, the middle class is increasing, and healthcare technology is advancing,” said Kirk Cooper, the firm’s chief investment officer. “These factors help create demand for global healthcare companies. Active management of covered calls provides a balance between generating yield and participating in any potential upside performance of the sector.”
The firm has previously launched other thematic ETFs on the TSX, including one for cybersecurity (CYBR), one for innovation in the automobile sector (CARS), and one for gender diversity in North American companies (HERS).
For more of Wealth Professional's latest industry news, click here.
Related stories:
ETFs moving on from cap-weighted indexes: WisdomTree
Evolve Funds launches three ETFs
