Evolve launches active healthcare ETF in Toronto

Oct 26th, 2017 | By | Category: Equities

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Evolve Funds has launched the Evolve Global Healthcare Enhanced Yield ETF (LIFE) on the Toronto Stock Exchange. The ETF provides exposure to healthcare stocks listed globally with a covered call overlay to improve yield.

Evolve launches active healthcare ETF in Toronto

The fund provides exposure to global healthcare stocks with a covered call overlay to improve yield.

Raj Lala, president and CEO of Evolve, commented: “We are pleased to have launched our 8th ETF in Canada, especially in a growing sector such as healthcare. 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.”

Underlying LIFE is the Solactive Global Healthcare 20 Index Canadian Dollar Hedged. LIFE invests primarily in the equity constituents of the index while selling call options on up to 33% of the portfolio’s securities at the discretion of the fund manager. The level of covered call option writing will vary dependant on market volatility and other factors.

Kirk Cooper, CIO at Evolve, commented: “The population is aging, the middle class is increasing and healthcare technology is advancing. These factors help to 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.”

LIFE becomes the eighth ETF offered by Evolve since the issuer entered the market in September this year. This month has seen the launch of the Evolve US Bank Enhanced Yield ETF (CALL), which also uses a covered call strategy, the Evolve Active US Core Equity ETF (CAPS), and the Evolve Active Short Duration Bond ETF (TIME).

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