Best Healthcare Covered Call ETFs of 2026
Health care covered call ETFs hold drug makers, medical device companies and health insurers, a group known for steady demand whatever the economy is doing. Most of these companies are U.S.-listed or global, as Canada has few large health care stocks.
The funds differ in how wide they cast the net, from a concentrated list of the biggest names to a broader global basket, and in whether they hedge the U.S. dollar.
We rank 7 funds here. FHI leads at +17.79% so far in 2026, and HIG is last at +7.32%. All 7 have made money once distributions are counted, with the median fund up 11.1%.
Key Takeaways
- FHI tops the ranking at +17.79% this year.
- The gap from first to last is 10.5 percentage points, so picking within this one sector has mattered a great deal.
- At the midpoint of the ranking, the return is up 11.1%.
The Top 3 in 2026
1. FHI: CI Health Care Giants Covered Call ETF (Hedged)
Top of the list is FHI, up 17.79% this year. The units rose 10.9% and distributions added 6.9 percentage points, a close to even split. In its setup, it writes calls on about 25% of the portfolio and its foreign currency is hedged. The annualized yield is running at 7.24%; the MER is 0.72%. Its top positions include Amgen Inc, Danaher Corp and Thermo Fisher Scientific Inc. The fund also trades under FHI.B (unhedged) and FHI.U in U.S. dollars.
2. ZWHC: BMO Covered Call Health Care ETF
The silver goes to ZWHC, at +16.32%. Its return is shared fairly evenly between a 9.8% price gain and 6.6 percentage points of distributions. Turning to the fund itself, it writes calls on roughly 20 to 50% of the portfolio and it carries its currency exposure without a hedge, for a current yield of 6.19% and an MER of 0.73%. Funds in this family are built to hold the same stocks as a plain portfolio but with a smoother ride, giving up some upside in strong rallies in exchange for extra cash flow. Among its biggest holdings are Regeneron Pharmaceuticals INC, ELI LILLY & CO and Gilead Sciences INC. For a different version, see ZWHC.T (Target Cash Flow Units).
3. LMAX: Hamilton Healthcare Yield Maximizer ETF
LMAX completes the top three, up 16.31% this year. Distributions are the main engine, at 11.4 percentage points, while the price edged up 5.0%. It costs 0.8% a year in MER and yields 11.49%; on top of that, it adjusts how much of the portfolio it writes calls on as markets change and its foreign currency is left unhedged. Because at-the-money calls cap gains at today's price, this family leaves a share of each portfolio uncovered to keep some room to grow. The names carrying the most weight are Eli Lilly & Co, Regeneron Pharmaceuticals Inc and Amgen Inc.
What Sets the Leaders Apart
If you line up the averages, distributions look similar (8.3 percentage points for the leaders, 9.0 percentage points for the laggards), but price does not: +8.54% versus −0.31%. In 2026, what each fund owned and how much of its upside it sold away in calls decided the order more than the size of the payout.
The top yield in the group, 12.10% from HHLE, comes with a 4th-place finish out of 7. When a fund's price slips, a big payout can mask it.
Fees, on the other hand, don't explain much here. The typical MER is 0.73% among the leaders and 0.85% among the laggards, a small difference next to the gap in returns.
The Bottom 3 in 2026
5. HHL: Harvest Healthcare Leaders Income ETF (Hedged)
HHL comes in 5th of the 7, at +9.70%. Only 1.0% of it came from a higher price; distributions added 8.7 percentage points. For an MER of 0.98%, you get a fund that yields 9.27%, and it writes calls on about 33% of the portfolio and it uses a currency hedge. Its family can write calls on all, some or none of the holdings at a given time, and can spread them across several strike prices during the month. It has other versions too, HHL.B (unhedged) and HHL.U in U.S. dollars.
6. LIFE: Evolve Global Healthcare Enhanced Yield Fund (Hedged)
LIFE finds itself 6th on the list, up 8.97% this year. Its price has eased 1.9%, and the 10.9 percentage points it paid out is what puts it in the green. The setup is straightforward: it writes calls on about 33% of the portfolio and it keeps a hedge on its foreign currency, yielding 12.06% for an MER of 0.64%. Related units: LIFE.B (unhedged) and LIFE.U in U.S. dollars.
7. HIG: Brompton Global Healthcare Income & Growth ETF
The lowest total return in the group is HIG's +7.32%. It is a payout-driven result: distributions supplied 7.4 percentage points while the price gave back 0.1%. Day to day, it adjusts how much of the portfolio it writes calls on as markets change and it hedges its U.S. dollar exposure, producing an annualized yield of 6.06% at an MER of 0.85%. Its other unit classes are HIG.U in U.S. dollars.
What to Watch in Healthcare Funds
Health care is often seen as a defensive sector, but the funds here can still diverge. A portfolio heavy in large drug makers can behave differently from one with more medical device or insurance companies.
Several of these funds hold mostly U.S. companies, so check whether the currency is hedged, and compare how much of the portfolio each one writes calls on.
How to Compare Them Yourself
Don't stop at the price chart. Covered call ETFs return a large share of their gains as distributions, so total return, price and payouts together, is the figure that lets you compare them.
Once you have total return, look at what drove it. A rising price shows the fund kept some of the market's gains; a return made almost entirely of payouts can be harder to sustain.
Finally, look at cost and structure. The MER is taken every year, leverage magnifies both gains and losses, and overlapping holdings can leave you less diversified than you think. Our Compare tool shows any five funds together.
All 7 Funds Ranked
| # | Fund | 2026 Total Return | Price Return | Annualized Yield | MER | Leverage |
|---|---|---|---|---|---|---|
| 1 | FHICI Health Care Giants Covered Call ETF (Hedged) | +17.79% | +10.90% | 7.24% | 0.72% | No |
| 2 | ZWHCBMO Covered Call Health Care ETF | +16.32% | +9.76% | 6.19% | 0.73% | No |
| 3 | LMAXHamilton Healthcare Yield Maximizer ETF | +16.31% | +4.96% | 11.49% | 0.80% | No |
| 4 | HHLEHarvest Healthcare Leaders Enhanced Income ETF | +11.09% | −0.32% | 12.10% | 2.39% | Yes |
| 5 | HHLHarvest Healthcare Leaders Income ETF (Hedged) | +9.70% | +1.04% | 9.27% | 0.98% | No |
| 6 | LIFEEvolve Global Healthcare Enhanced Yield Fund (Hedged) | +8.97% | −1.92% | 12.06% | 0.64% | No |
| 7 | HIGBrompton Global Healthcare Income & Growth ETF | +7.32% | −0.06% | 6.06% | 0.85% | No |
How We Rank
Our measure is total return for 2026, from the closing price on December 31, 2025, with distributions reinvested on their pay dates, similar to how fund managers report performance. A fund is ranked once on its main Canadian-dollar units; newer funds wait until they have a full year.
Past returns don't predict future returns. This article is written automatically from market data and updated every trading day; it is for information only and is not investment advice. Check each provider's documents before investing.