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Harvest Healthcare Leaders Income ETF (HHL $6.94)
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Evolve Global Healthcare Enhanced Yield Fund (LIFE $18.05)
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Harvest Diversified High Income Shares ETF (HHIS $12.47)
How would you compare HHIS to these 2 ETFs? Hhis has a yearly of +20%, payable monthly . Does HHIS return capital as part of their monthly payment? Are those payments taxable as interest only?
If I am comfortable holding Life and HHL, should be comfortable holding HHIS?
The portfolios and strategies between LIFE and HHL are extremely similar. The yield of both strategies are high, with LIFE having the edge, 12.41% vs 10.16%. But HHL has better peformance (5-year 7.85% vs 5.68%). LIFE's management fee is 0.60% and it has $260M in assets. HHL fee is 0.99% at $1.58B in net assets.
HHIS shows an indicated yield of 25.15%, and assets of $450M. It owns a portfolio of single stock high income ETFs that engage in covered call strategies. Owning about 14 different funds, it is more diverse in terms of sector than the other two ETFs, but individual position sizes are much more concentrated. It has a short history but is up 18.97% in the past three months. Since it has not had a year history, we do not have the tax breakdown, but we would fully expect it to be largely taxed as capital gains and return of capital. We would consider HHIS riskier overall, but it has some positive features. We would prefer to see a longer performance history of course, and its holdings are mostly expensive 'mega cap' US securities. So there is more market risk vs the more-stable health care sector (generally).