Looking for better retirement income options for your clients?
The Harvest ETF launched its Harvest Diversified Monthly Income ETF (HDIF: TSX) on February 16, and, even though it’s only a month old, the ETF is already proving to be a winner as it now has over $30 million in AUM.
“The capital that has come into this ETF is one of the fastest we’ve launched in the last decade,” said Paul McDonald, chief investment officer and portfolio manager at the Harvest ETF. money professional.
The HDIF ETF was established to provide a prime one-stop selection for investors interested in retirement equity income. It’s a “fund of funds,” McDonald said, that rolls five income ETFs into one package using covered call strategies, thereby increasing monthly cashflow. It also doesn’t charge an additional management fee beyond the underlying fee for the collective group, and is now seeing an 8.5% monthly distribution.
The five Harvest ETFs held in the HDIF are generally focused areas of the market that have long-term secular growth tailwinds. These include large cap health care, large cap global utilities, technology companies, US banks and leading brands with a consumer base.
“One of the reasons we’ve found success in each individual ETF is because we feel there is a lack of quality, income-oriented products for investors,” McDonald said. “This means that, even if we raised interest rates slightly, your traditional fixed income still has an exceptionally low rate of return. With relatively low dividend yields in the broader markets, there is really no choice, but Investors need to find sources of cash flow from their investments.”