By Ambrose O’Callaghan
The year 2025 has seen dueling narratives driving perspective in the healthcare space. In the first quarter, tech and growth-oriented sectors were on shaky ground, which thrust defensive factors into favour. Healthcare led the market in this early stage. However, by the late spring season and following “Liberation Day” tariffs, the AI story propelled technology and growth factors had taken back momentum.
Now, as we approach the final weeks of 2025, it is worth looking back on the space. Some areas of healthcare delivered, while others have not. Today, we will provide a quick snapshot of the sector and look at two of Canada’s largest healthcare ETFs that also provide consistent income.
Healthcare: Autumn 2025 checkup
The healthcare sector has demonstrated both defensive and growth-oriented qualities through its history. Healthcare is defensive because of the essential nature of its services. On the other hand, its growth qualities stem from the high demand for specialized products as well as technological innovations.
Some of the biggest names in the healthcare space were beneficiaries of earnings beats throughout the summer season. Even still, the positive results failed to provide a bullish catalyst. Meanwhile, companies that posted earnings misses were punished more severely in the market. Fundamental issues in the managed care segment did weight on the healthcare sector for much of the year. Fortunately, those headwinds have largely stabilized.
Source: Harvest ETFs, November 17, 2025.
Valuations have compressed in the healthcare space relative to the broader market. In this climate, investors have searched for catalysts for a rebound. Those catalysts included Warren Buffett’s UnitedHealth purchases, as well as headlines that have focused on the issues of reshoring and repatriation. For example, Pfizer and AstraZeneca were able to secure multi-year tariff exemptions through pricing deals as well as commitments to the ruling administration’s platform. Eli Lilly, Johnson & Johnson, and Merck have also pledged billions to expand their U.S. operations.
Intuitive Surgical jumped double-digits on the back of an improved medical devices market. Moreover, large capitalization biopharmaceutical innovator Regeneron Pharmaceuticals posted strong returns following an upbeat quarter.
Previous quarters saw strong earnings go largely unnoticed by the markets. Now, with strong performances matching strong earnings, this is a sign that sentiment may have stabilized in the healthcare sector.
HHL & HHLE | Healthcare ETFs with Monthly Income
The Harvest Healthcare Leaders Income ETF (TSX: HHL) is Canada’s largest covered call healthcare ETF. It offers access to an equally-weighted portfolio of 20 large-cap global healthcare companies, selected for their potential to provide steady income and long-term capital appreciation. HHL is available in multiple currency classes, including hedged, unhedged, and a U class ETF.
HHL last paid out a monthly cash distribution of $0.06 per unit. The ETF has paid out consistent monthly cash distributions since its inception, never missing a payout. In 2024, HHL increased its monthly distribution payout from $0.0583 to $0.06 per unit. That represents a current yield of 9.36% as at November 13, 2025.
Annual Performance
As at October 31, 2025
| Ticker | 1M | 3M | 6M | YTD | 1Y | 2Y | 3Y | 4Y | 5Y | 7Y | 8Y | 10Y | SI |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| HHL | 3.54 | 9.61 | 4.06 | 4.56 | (1.30) | 9.87 | 6.07 | 5.45 | 10.08 | 7.96 | 7.68 | 7.00 | 6.60 |
| HHL.B | 4.50 | 11.38 | 6.81 | 3.52 | 1.12 | 11.90 | 8.21 | 9.76 | 12.08 | - | - | - | 10.37 |
| HHL.U | 3.69 | 10.04 | 4.99 | 6.10 | 0.38 | 11.28 | 7.16 | 6.38 | 10.94 | 8.96 | 8.65 | - | 9.03 |
The Harvest Healthcare Leaders Enhanced Income ETF (TSX: HHLE) is a levered version of HHL, for investors who are hungry for more torque and monthly income. This ETF applies modest leverage of approximately 25% to an investment in HHL. HHLE last paid out a monthly cash distribution of $0.0934 per unit, which represents a current yield of 12.06% as at November 13, 2025.
Annual Performance
As at October 31, 2025
Disclaimer
The content of this article should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or use to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional.
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds managed by Harvest Portfolios Group Inc. (the “Funds”). Please read the relevant prospectus before investing. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available Class units of the Fund you own. If a Fund earns less than the amounts distributed, the difference is a return of capital.
Certain statements included in this communication constitute forward-looking statements (“FLS”), including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to the Fund. The FLS are not historical facts but reflect Harvest’s, the Manager of the Fund, current expectations regarding future results or events. These FLS statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest, the Manager of the Fund, believes that the assumptions inherent in the FLS are reasonable, FLS are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Harvest, the Manager of the Fund, undertakes no obligation to update publicly or otherwise revise any FLS or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
