Evolve Funds Group has launched a new global healthcare ETF with a covered call strategy – the Evolve Global Healthcare Enhanced Yield ETF (LIFE) – on the Toronto Stock Exchange (TSX).
Evolve ETFs include a suite of actively-managed and index-based ETFs with a total of eight listings in Canada.
“We are very pleased to have launched our 8th ETF in Canada, especially in a growing sector such as healthcare,” says Raj Lala, President & CEO. “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.”
LIFE 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. LIFE invests primarily in the equity constituents of the Solactive Global Healthcare 20 Index Canadian Dollar Hedged, while writing covered call options on up to 33 per cent of the portfolio securities, at the discretion of the Manager. 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,” says Kirk Cooper, Chief Investment Officer at Evolve ETFs. “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.”