Q: What do you think about holding this ETF in an RSP for a retired person looking for capital preservation and income. Is there something else you would recommend.
5i Research Answer:
LMAX is a $180M covered call US healthcare fund. Fees are 0.80%, yield 12.23% but one year return only 0.95%. We are comfortable with the sector and its strategy. As a new fund we would like to see longer performance numbers. There is asset decay here and unit price is down about $2 since last year's launch. The sector could do well if the market sells off on war fears. For now, with a high fee and a short history, we would just give it a neutral rating. The ETF LIFE is larger, cheaper and has done better over comparable periods.