As a result, many Canadians, especially retirees and retirees who rely on income generated from their income assets, are unable to keep up with the rising cost of living.
According to Michael Kovacs, President and CEO of Harvest ETFs, “At Harvest ETFs, we have a proven record of providing growth potential and income to Canadian investors through our equity income ETFs.” “The Harvest Diversified Monthly Income ETF is built on the strength of that record. We know Canadians need a high-yield ETF to ease their income needs, and we believe HDIF is that product.
The portfolio components and strategies in HDIF that potentially deliver this high income were created by Paul McDonald, chief investment officer at Kovacs and Harvest. The HDIF is composed of an equal-weight mix of five Harvest Equity Income ETFs: Harvest Healthcare Leaders Income ETF (HHL), Harvest Brand Leaders Plus Income ETF (HBF), Harvest Tech Achievers Growth and Income ETF (HTA), Harvest Equal Weight Global Utilities Income ETF (HUTL) and Harvest US Bank Leaders Income ETF (HUBL).
Each component of the HDIF ETF is an equity income ETF that generates monthly income from a combination of dividends and covered call writing. The Harvest ETF is Canada’s third largest covered call writer, with a long history of adopting this approach to increase earnings from a stock portfolio while minimizing risk.
Each constituent ETF is currently yielding between 4.9 and 8.3%. HDIF can achieve its target return of 8.5% with marginal leverage at the rate of 25%. HDIF enables efficient access for investors who wish to use leverage for long-term growth or increased income in Canada, with a few registered plan-qualified leveraged investment products to choose from.