Product Commentary

July 2025

As we passed through the 158th Canada Day, there were many things to celebrate on the home front. Investors would have been thrilled that the TSX Index closed out June at all-time highs. That Canadian market strength flowed through to our Harvest Canadian Equity Income Leaders ETF (HLIF:TSX), which hit new highs. Other ETFs in our product lineup that benefitted were the Harvest Global Gold Giants Index ETF (HGGG:TSX), which has exposure to Canada’s top-performing gold companies and our two new Canadian low volatility strategies. These strategies, the Harvest Low Volatility Canadian Equity ETF (HVOL:TSX) and the Harvest Low Volatility Canadian Equity Income ETF (HVOI:TSX) offer low volatility defensive strategies with 100% Canadian equities.

Looking at North America broadly, extreme policy risks and volatility have eased, and consumer sentiment has improved. Notwithstanding, macroeconomic risks continue to linger as geopolitical conflicts and trade policy stir uncertainty. There was evidence in 2025 that investors were participating again in the so-called “TACO trade”. “TACO Trade” dynamics describes a situation wherein investors and traders bet on extreme policy threats, which leads to policy inaction.

The US stock market climbed to record highs this past June with different sections of the market taking turns leading the pack. The rotations in market leadership started in April and have continued into the early summer months. In the early summer, Tech stocks along with with industrials were the leaders.

Meanwhile, defensive areas like healthcare have lagged.

Sometime leaders and laggards can work to complement each other. We saw a great example of this playing out in the Harvest lineup with two of our ETFs:

The Harvest Tech Achievers Growth & Income ETF (HTA:TSX), which benefitted from tech’s momentum in June and the Harvest Equal Weight Global Utilities Income ETF (HUTL:TSX), which lagged in comparison as utilities underperformed alongside other defensives. Paul MacDonald’s comments in our July “5 Market Minutes” video illustrates how well HTA and HUTL have complemented each other when we extend that to a year-over-year perspective.

Not all ETFs were affected by the market shifts in leadership. Those ETFs that are more diversified have been able to sidestep shorter-term market rotations and dynamics. For example, the Harvest Brand Leaders Plus Income ETF (HBF:TSX) that focuses on globally diversified brands with good financials, dominant market shares, and strong dividend-growth histories has largely evaded these market shifts.

June was another stellar month for crypto assets, especially Bitcoin. In 2018, we launched the very first blockchain ETF in Canada – the Blockchain Technologies ETF (HBLK:TSX). The digital asset industry has undergone tremendous evolution in the seven years since HBLK’s launch. Back then, crypto and blockchain funds and ETFs were a very small group in North America. Now it is a massive, diverse crowd.

That evolution and the performance of crypto miners like Hut 8 Mining or trading apps like Robinhood have boosted HBLK as well as our recently launched ETFs; the Harvest Bitcoin Leaders Enhanced Income ETF (HBTE:CBOE) and the Harvest Bitcoin Enhanced Income ETF (HBIX:CBOE).

As we move into the dog days of summer, investors continue to face uncertainty in the form of ongoing geopolitical conflicts and trade tensions. Moreover, inflationary risks from these policies are spurring volatile bond yield moves. Investors should anticipate continued headline risk as we move into generally lighter volume months. This environment can stir periods of greater volatility. Those conditions, combined with market rotations, reinforces that diversity is key in the present-day backdrop.

Harvest Healthcare Leaders Income ETF

HHL rebounded in June posting positive return, albeit lower than the broader market return, mirroring the performance for the overall sector. The Fund operated in an environment where:

• • U.S. healthcare rebounded modestly in June, lagging broader markets which were driven by mega-cap tech
  • Policy focus centred on the “One Big Beautiful Bill,” which helped to ease concerns over disruptive reforms
  • Large-cap pharma names like Eli Lilly stayed strong, while med-tech leaders traded sideways awaiting second-half catalysts; and
  • Valuations remain compressed, offering attractive entry for long-term investors.

The ETF invests in 20 large-cap healthcare leaders and pays a monthly distribution of $0.06 per unit, yielding 10.07% as of June 30, 2025.

Outlook | Despite short-term volatility and policy-driven pressure on the sector in the short term, long-term fundamentals remain solid driven by: Aging populations, developing nations and technological innovation. HHL continues to benefit from steady monthly income and is in the top performing  healthcre fund group.

Harvest Brand Leaders Plus Income ETF

HBF posted very modest gain for the month which was not enough to put it in the black year-to-date. The factors that bode well for the Fund’s investments during June were:

• • Equities advanced on optimism over deregulation and AI, with the “One Big Beautiful Bill” boosting sentiment.
  • Oracle and Broadcom gained from AI enthusiasm, while McDonald’s and Accenture slipped on growth concerns; and
  • Easing of Tariff risks, though not fully resolved, keeping investors cautious ahead of earnings season.

The ETF maintained its covered call strategy and plans to rebalance in July, as it continues its focus on balancing income generation with participation in equity upside.

Outlook | Ongoing tariff uncertainty and macroeconomic concerns kept markets volatile | Equal weight and specific value, quality & yield specified financial metrics help in current environment with ongoing rotations.

Harvest Tech Achievers Growth & Income ETF

HTA continued to regain ground in June posting positive return. This reflects the state of the technology sector, which has powered the broader markets. Of note we saw:

• • Technology stocks led markets higher in June, driven by sustained AI excitement and easing tariff worries.
  • Semiconductor firms like Micron surged, Oracle rose on cloud growth, while Accenture and Adobe slipped despite strong earnings.
  • Broader uncertainty lingered as investors watch upcoming earnings and policy moves.

The ETF continued writing covered calls and will rebalance in July, capturing growth potential in leading tech names while enhancing income.

Outlook | AI-driven tech demand continues | Equal weight avoids over concentration I HTA well-positioned in large-cap tech leaders with steady income from call options.

Harvest Equal Weight Global Utilities Income ETF

HUTL held steady for June, mirroring the overall Utilities sector. Utilities lagged the broader markets. Meaningful factors influencing Utilities in June were:

• • Risk-on sentiment and “soft landing” optimism; and
  • The AI boom, which highlights growing electricity demand, offering a medium-term tailwind for the sector.

HUTL’s portfolio of 30 top utility, telecom, and pipeline companies balances defensive income generation with potential upside, supported by a covered call overlay to boost monthly cash flows in varying economic conditions.

Outlook | HUTL is well-positioned in uncertain markets and from AI energy demand tailwinds I Steady cash flow amidst broader macro uncertainty I Remains a top performing utility ETF in Canada.

Harvest Global REIT Leaders Income ETF

HGR was practically flat in June, mimicking the overall performance of the REITs sub-sector, which lagged the broader market that was powered by growth stock. There were gains in Industrial, tower, and data center REITs that were offset by softer performance in other segments.

HGR remains broadly diversified across global REIT subsectors, balancing exposure to growth-oriented assets with value plays like office and healthcare REITs. This approach helps manage macro uncertainty while targeting consistent income from global real estate leaders.

Outlook | Global REITs face headwinds from rate uncertainty and trade tensions | HGR’s diversified tenant and lease exposure offers resilience I Exposure to growth themes like data warehouses & online shopping trends with industrial warehouses globally

Harvest Energy Leaders Plus Income ETF

HPF and broader Energy stocks were positive for the period amid higher volatility. During the month, the two notable catalysts impacting the outcome of Energy stocks were:

• • Oil prices spiked in June amid U.S.–Iran tensions but quickly retreated as conflict fears eased.
  • OPEC+ surprised markets by restoring production, raising questions about potential market share battles with U.S. producers.

HPF continues to balance exposure to large-cap energy names with a covered call strategy to generate income, and the ETF will rebalance in July.

Outlook | Oil markets face macro and supply-side instability | HPF retains quality energy names aligned with long-term capital discipline and yield strength.

Harvest US Bank Leaders Income ETF

HUBL recorded positive return for June boded by:

• • U.S. bank stocks rally in June on optimism over economic stimulus and positive stress test results, which also prompted dividend increases for several banks.
  • Goldman Sachs and Citigroup led gains, while First Citizens and U.S. Bancorp lagged.

HUBL maintains a covered call strategy for income, benefiting from renewed investor confidence in the banking sector as risks around tariffs and policy uncertainty eased.

Outlook | Fed rate expectations and loan growth outlooks will shape returns | Covered calls help manage risk in a volatile macro banking environment.

Harvest Canadian Equity Income Leaders ETF

HLIF was up on records set by the overall Canadian markets

• • Canadian equities reached new highs in June as tariff tensions cooled and the Digital Services Tax dispute with the U.S. deescalated.
  • Banks, telecoms, energy, and renewables outperformed, while utilities and Restaurant Brands weighed on performance.

The ETF focuses on Canada’s top dividend payers, refreshed quarterly; Cenovus Energy replaced AltaGas this period. The portfolio’s covered call overlay supports stable monthly income in a mixed economic environment.

Outlook | Equal weight and dominant oligopolistic like companies in the Canadian market | Focused on size & yield in domestic market I HLIF is positioned defensively & favours stable cash flow names.

Harvest Travel & Leisure Income ETF

TRVI posted positive returns for June reflecting the benefits of the overall industry that’s linked to:

• • Resilient consumer spending and a “soft landing” outlook.
  • Sharp rebound in cruise lines as after-tax concerns faded, though airlines lagged.
  • Long-term travel demand remains supported by demographic trends despite potential economic headwinds.

TRVI offers diversified exposure to top travel stocks and overlays a covered call strategy and hedges U.S. dollar exposure, aiming to enhance yield while reducing individual stock risk.

Outlook | While some short-term pressure from consumers is cautionary, the sector is well positioned to benefit from secular trends like aging demographics and resilient travel intent support the long-term thesis I Benefits from renewed interest in the consumer discretionary.

Harvest Industrial Leaders Income ETF

HIND posted solid gains in June as industrial stocks extended their rebound, supported by optimism around the “One Big Beautiful Bill,” which includes permanent capital expenditure expensing. Caterpillar and Uber were among the month’s top performers, while Republic Services and Copart lagged as investors rotated toward growth over defensives. Despite lingering tariff uncertainty, markets remain upbeat.

HIND maintains its covered call strategy for added income and completed its June rebalance without portfolio changes, staying positioned to benefit from renewed industrial sector momentum.

Outlook | HIND remains exposed to economic cyclicals | Earnings momentum and post-selloff strength suggest resilience | Tariff tensions remain a macro headwind

Harvest Low Volatility Canadian Eqiuty Income ETF

HVOI posted modest gains in June as Canadian markets hit new highs, though low volatility strategies trailed more cyclical and growth-oriented factors. Strength in big banks, along with top names like Dollarama, CIBC, and Fairfax Financial, supported returns, while not holding high-flying stocks like Shopify and Brookfield detracted from potential gains relative to the overall Canadian market.

HVOI remains defensively positioned to manage risk but still offer exposure to continued equity market growth, balancing stability with participation in upside trends.

Outlook | Strategies focus on stable, dividend-paying Canadian equities | Market turbulence expected to persist | Low-volatility profile is timely for conservative investors.

Harvest Premium Yield Treasury ETF

Harvest Premium Yield 7-10 Year Treasury ETF

HPYT and HPYM held ground in June and eked out positive returns . HPYT outperformed its mid-duration peer HPYM during the month due to higher duration, although HPYM still leads year-to-date. For June, the ETFs benefited from

• • The U.S. yield curve holding steady while edging slightly lower, reflecting continued market optimism for a “soft landing”; and
  • Expectations of rate cuts by the end of 2025.

Both ETFs use an active covered call strategy to generate elevated income from bond market volatility, helping investors offset inflation and deliver higher real yields than traditional fixed income.

Outlook | HPYT/HPYM offer high cash flows from writing covered calls I Macro backdrop is challenging for longer dated yields I Flexible covered call strategy helps generate cash flows.

Harvest Diversified Monthly Income ETF

Harvest Diversified Equity Income ETF

HDIF and HRIF delivered positive returns in June, outperforming the S&P 500 Equal Weight Index as equity sentiment improved and volatility eased. Gains were led by strong performances from HUBL and HTA, driven by tech strength, while defensive holdings like HVOI and HUTL still contributed positively.

The ETFs added HVOI to further diversify Canadian exposure alongside HLIF, enhancing resilience against policy or geopolitical risks. This balanced, diversified approach keeps the funds well-positioned whether bullish equity momentum continues or market uncertainty returns.

Outlook | HRIF and HDIF remain defensively positioned with multi-sector exposure and high-income strategies to moderate risk | Trade and geopolitical uncertainty justifies diversified approach.

Harvest Balanced Income & Growth ETF

Harvest Balanced Income & Growth Enhanced ETF

HBIG and HBIE posted solid gains in June, supported by rising equities and modest bond market strength despite lingering inflation concerns. Equity positions led by HUBL and HTA captured tech-driven upside, while falling yields boosted HPYT and HPYM on the fixed income side.

By combining equity income strategies with bond exposure, these ETFs maintain an “all-weather” stance designed to balance near-term volatility with long-term growth potential, ready to adapt whether optimism or risk drives markets in the months ahead.

Outlook | Balanced equity-fixed income structure continues to help buffer downside | Enhanced income and diversification support resilience.

Harvest Global Gold Giants Index ETF

HGGG was up for the month, albeit modestly. This largely reflects that gold stocks dipped in June for the first time in 2025 as geopolitical fears eased and tariff tensions calmed. Gold stocks’ negative performance for June was tempered by the appeal for gold as a safe-haven asset remaining strong amid sticky inflation and rising deficits. Also, the loss of Moody’s AAA credit rating for the U.S. adds to gold’s case as a hedge.

HGGG invests equally across the world’s 20 largest gold producers, providing leverage to gold price moves and long-term diversification benefits, especially during volatile market cycles.

Outlook | Geopolitical risk and sticky inflation keep gold’s safe haven appeal intact | Gold producers offer upside leverage and margin strength.

Harvest Travel & Leisure Index ETF

TRVI and TRVL posted positive returns for June reflecting the benefits of the overall industry that’s linked to:

• • Resilient consumer spending and a “soft landing” outlook.
  • Sharp rebound in cruise lines as after-tax concerns faded, though airlines lagged.
  • Long-term travel demand remains supported by demographic trends despite potential economic headwinds.

TRVL offers diversified exposure to top travel stocks.

Outlook | While some short-term pressure from consumers is cautionary, the sector is well positioned to benefit from secular trends like aging demographics and resilient travel intent support the long-term thesis | Benefits from renewed interest in the consumer discretionary.

Harvest Clean Energy ETF

HCLN was up for the month of June capturing:

• • The strong rally of clean energy stocks in June, that matched broad market gains amidst tax cut risks from the Big, Beautiful Spending Bill. There appears to be some negative sentiment that have been priced in; and
  • Long-term clean energy demand underpinned by global climate goals that still require accelerated investment.

HCLN holds the 40 largest dedicated clean energy and equipment firms, equally weighted and diversified across North America, Europe, and Asia, with the portfolio set for rebalancing in July.

Outlook | Massive global clean energy investment needs remain | Long-term drivers are intact | Near-term risks persist under current U.S. administration.

Harvest Low Volatility Canadian Equity ETF

HVOL posted modest gains in June as Canadian markets hit new highs, though low volatility strategies trailed more cyclical and growth-oriented factors. Strength in big banks, along with top names like Dollarama, CIBC, and Fairfax Financial, supported returns, while not holding high-flying stocks like Shopify and Brookfield detracted from potential gains relative to the overall Canadian market.

HVOL remains defensively positioned to manage risk but still offer exposure to continued equity market growth, balancing stability with participation in upside trends.

Outlook | Strategies focus on stable, dividend-paying Canadian equities | Market turbulence expected to persist | Low-volatility profile is timely for conservative investors.

Blockchain Technologies ETF

HBLK posted robust gains in June as blockchain stocks outpaced both Bitcoin and broader markets, reflecting growing independence from crypto price moves. The portfolio shifted to a heavier small-cap blockchain allocation, with Robinhood’s crypto-driven rally and Core Scientific’s acquisition talks boosting performance.

HBLK remains diversified across software, consulting, and blockchain infrastructure, aiming to capture early-stage blockchain growth while balancing risk through structural exposure to enterprise applications.

Outlook | Blockchain’s long-term growth remains intact | Higher large-cap exposure may benefit the portfolio as the crypto cycle matures.

Harvest Bitcoin Leaders Enhanced Income ETF

Harvest Bitcoin Enhanced Income ETF

Both HBTE and HBIX delivered strong gains in June as enthusiasm for the Bitcoin ecosystem surged, even as Bitcoin itself modestly trailed broader equities. HBTE’s holdings, including IREN and Core Scientific, soared on growth plans and takeover news, while Coinbase and other crypto stocks also jumped sharply.

HBIX gained from Bitcoin exposure through the iShares Bitcoin Trust ETF, enhanced by a covered call overlay on about 30% of that position, capturing income while staying positioned for crypto market upside.

Outlook | Accelerated interest in the Bitcoin ecosystem driving growth | Maturing digital asset class is increasingly guided by its own fundamental dynamics.

Harvest Diversified High Income Shares ETF

HHIS posted strong returns in June as U.S. equity markets rebounded, driven by growth and AI themes. Top contributors included CNYE, boosted by crypto optimism, and AMDY and NVHE, which gained from sustained investor enthusiasm around AI. Tesla’s TSLY and Costco’s COSY dipped, the former partly due to political controversy. HHIS expanded its portfolio to 15 underlying single-stock ETFs by adding APLE (Apple). Despite lower volatility, option premiums stayed elevated, supporting income generation through covered calls written at about 33% across the suite.

Outlook | HHIS continues to offer diversified, enhanced income exposure to high-growth U.S. stocks.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). The funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the relevant prospectus before investing. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in this commentary are forward looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. Although the FLS contained herein are based upon what the portfolio manager believes to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS. Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether due to new information, future events or otherwise.