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  5. LIFE: Are these ETFs worth holding for income in a diversified portfolio? [Evolve Global Healthcare Enhanced Yield Fund]
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Q: Are these ETFs worth holding for income in a diversified portfolio? I realize that the covered call strategy limits the upside potential.
Asked by Allen on November 24, 2023
5i Research Answer:

LIFE is only up 0.6% in the past year, but this is largely due to weakness in the sector and not really the ETF's 'fault' since it is specialized. It only holds 21 securities so is fairly concentrated. But for an income position we think it is fine. HMAX has attracted a lot of assets in a short period ($550M) and with the financial sector recovery is up 6.3% in the past month. We would have no objections to owning it for investors who understand the 'at the money' call option strategy. 

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