On August 21, 2024, Harvest ETFs expanded its product line by launching the new and innovative Harvest High Income Shares ETFs. They trade on the TSX and are available in levered and non-levered options with units denominated in CAD and USD (see product line-up table).
These ETFs invest in shares of top US companies with strong growth and lots of momentum. Each ETF represents a portfolio that invests 100% of its assets in the shares of a single company. The companies in scope are well known, well sought after, and stand as leaders in their industries: Amazon, Eli Lilly, Microsoft, and NVIDIA.
In this short piece, we will address the question of the type of investors that could benefit from these new innovative products now in the Harvest ETFs lineup. So, let’s go. Note: These are not presented in order of who will benefit the most.
Harvest High Income Shares Product Line-up
| Harvest High Income Shares ETF | Class A TSX Ticker (CAD) | Class U TSX Ticker (USD) |
| Harvest High Income Shares Non-Levered ETFs: | ||
| Harvest Amazon High Income Shares ETF | AMZH | AMZH.U |
| Harvest Eli Lilly High Income Shares ETF | LLYH | LLYH.U |
| Harvest Microsoft High Income Shares ETF | MSFH | MSFH.U |
| Harvest NVIDIA High Income Shares ETF | NVDH | NVDH.U |
| Harvest High Income Shares Levered ETFs: | ||
| Harvest Amazon Enhanced High Income Shares ETF | AMHE | AMHE.U |
| Harvest Eli Lilly Enhanced High Income Shares ETF | LLHE | LLHE.U |
| Harvest Microsoft Enhanced High Income Shares ETF | MSHE | MSHE.U |
| Harvest NVIDIA Enhanced High Income Shares ETF | NVHE | NVHE.U |
First up – Investors who love these companies but cannot get direct exposure because of the cost, can now do so. For only $12 (USD or CAD) at the market launch price, investors can gain full exposure to these relatively high-priced companies. Moreover, investors will enjoy receiving high monthly cash distributions, which are supported by an active and flexible covered call.
Second in line – Investors who already owned these shares but are looking to pick up some tax efficient income, and don’t have the time and/or expertise to execute a covered call strategy, can now look to the Harvest High Income Shares ETFs as their available option.
Next in line – Investors who are contemplating leverage to either gain or increase exposure to these companies. The Harvest High Income Shares ETFs offer an enhanced series to choose from. Harvest ETFs can tap into more favourable rates for borrowed funds offered to institutional investors. By borrowing up to 25% of a fund’s net asset value (NAV), investors are able to get an amplified potential exposure and higher monthly distributions, both at a factor of 1.25 times.
How Harvest High Income Shares deliver high monthly income and growth potential
Harvest ETFs designed the Harvest High Income Shares ETFs to provide tax efficient, high monthly income to investors, and access to the potential growth each company offers. If you are in any of the above groups and are looking to extract monthly cash flows from 100% exposure to these top US stocks, then the Harvest High Income Shares ETFs are options to achieve that. These unique products were not available until now.
Harvest ETFs has a proud track record. The company seeks to, and has delivered, consistent, reliable, and dependable cash distributions to its investors every month. Since entering the ETF space in 2016, Harvest has delivered nearly CAD $1 billion to investors in its funds. Harvest’s distinguishing features are its flexible covered call strategies managed by a team of four sector experts, and its focus on providing consistent, reliable, steady, and predictable income to unitholders invested in its income products. The Harvest High Income Shares ETFs suite is now being branded as a new single-stock lineup that fits perfectly into Harvest ETFs’ overall investment philosophy.
With the launch of the Harvest High Income Shares ETFs, Harvest has also announced the initial distributions for the funds ranging from $0.14 to $0.22 (see details below). The planned payment for these first distributions is October 9th for unitholders on record as of September 27. That is also the time when the ETFs will trade ex-dividend.
To learn more about these products click here.
Disclaimer:
Commissions, management fees and expenses all may be associated with investing in the Harvest Income Shares ETFs (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently, and past performance may not be repeated. The content of this article is to inform and educate and therefore should not be taken as investment, tax, or financial advice.
