Mulvihill Capital Management has introduced a new ETF in Canada providing high-income exposure to US equities of companies operating in the health care sector.

The ETF is designed to provide income-enhanced exposure to US health care stocks.

The Mulvihill US Health Care Enhanced Yield ETF (XLVE CN) has been listed on Toronto Stock Exchange with a management fee of 0.65%.

The actively managed fund seeks long-term capital appreciation by investing primarily in US health care companies selected from the S&P 500. Up to 25% of the ETF’s assets may be allocated to health care companies listed outside of the US.

The fund may employ modest leverage of approximately 25% of its net asset value to enhance the dividend yields of the underlying stocks and provide additional return potential.

To generate further income above the dividends earned on the equity securities included in its portfolio, XLVE may write call and put options on a portion of its portfolio.

The fund pays monthly distributions with a target yield of 7% per annum.