In January, the Harvest Diversified High Income Shares ETF (TSX: HHIS) marked its first-year anniversary. It’s been an exciting year for HHIS and the Harvest High Income Shares ETF™ suite.
In this insight piece, we examine some of the recent developments for HHIS and its holdings, provide an overview of the long-term themes our investment team is focusing on, and look at its performance and income generation since its inception. Let’s jump in.
Recent developments for HHIS
Over just twelve months since launching on January 16, 2025, HHIS managed to reach over $1.3 billion in total assets under management; a demonstration of the growing demand among investors. Moreover, consistent with the Harvest’s income philosophy “Income Happens Here”, it has delivered a strong monthly income profile. Its initial distribution was $0.25 per unit paid in February. Later in year, it made two distribution increases, one in October to $0.26 per unit and the other in November to $0.27 per units, where is stands as of writing. That’s an impressive 29% current yield as of close on February 4, 2026.
Meanwhile, HHIS has maintained exposure to the most dominant and cutting-edge companies in the United States. Through Harvest’s time-tested covered call option writing strategy, it seeks to generate high levels of monthly income through exposure to those underlying holdings.
HHIS | Generating income with adaptive management
The Harvest Diversified High Income Shares ETF holds a basket of 20 Harvest High Income Shares ETFs™. Each single stock ETF within HHIS is overlayed with an active covered call writing strategy that seeks to generate high cash distributions. It employs modest leverage of approximately 25% to enhance monthly income and growth potential.
HHIS’ portfolio has adapted as markets have changed over the past year. Our investment management team adjusts the mix and weightings of the holdings in HHIS based on fundamentals, valuations, volatility, and income opportunities. At all times, HHIS seeks to balance growth leadership with income generation through its 20 holdings.
Our investment management team recently added the Harvest CrowdStrike Enhanced High Income Shares (TSX: CRWY) to our HHIS holdings, bringing the portfolio holdings to 20. Over the course of the year, the team was active across the portfolio. For example, it added to its positions in the Harvest Eli Lilly Enhanced High Income Shares ETF (TSX: LLHE) when Eli Lilly was down in the summer. More recently, over the past two months, the investment management team has been trimming down some positions like the Harvest Alphabet Enhanced High Income Shares ETF (TSX: GOGY), LLHE, and the Harvest AMD Enhanced High Income Shares ETF (TSX: AMDY).
Source: Bloomberg Finance, L.P. Harvest, as of December 31, 2025. (Update to January version)
Meanwhile, HHIS has topped up some of the more oversold holdings that had come under pressure during the latter part of January, 2026. Our investment management team updates the holdings within HHIS each month. Stay tuned to our monthly newsletter that incorporates more details on HHIS holdings and details its options strategy and leverage exposure. Click here to view the Monthly ETF Commentary.
Long-term catalysts for HHIS holdings
For the long term, HHIS is designed to capture durable themes. That includes the following:
Artificial Intelligence Development | Palantir, Microsoft, Alphabet
Artificial intelligence, which refers to technology like large language models (LLMs), generative models, deep learning models, and more, has drawn attention for its potentially revolutionary impact on a broad array of industries. The development of AI could have a transformative impact on the way we work, improving efficiencies and speeding up – and sometimes bypassing entirely – many processes.
GLP-1/Weight Loss Drugs | Eli Lilly & Novo Nordisk
The rise of GLP-1s like Ozempic from Novo Nordisk, and Mounjaro from Eli Lilly, have delivered never-before-seen results in weight loss. This has generated considerable excitement on behalf of consumers and investors alike. A 2025 report from Goldman Sachs projected that the global anti-obesity medication market could reach US$120 billion by 2035.
Chipmakers & Manufacturers | NVIDIA, AMD, & Broadcom
Semiconductors have experienced massive sales growth due to the demand spurred by AI and software developments. A recent research note from Deloitte predicted that, at current growth levels, the revenues of the chip industry could hit US$1 trillion by 2030.
Next-Gen Consumer & Enterprise Technology | Strategy, CrowdStrike, Tesla
Next-generation consumer and enterprise technology is being driven by the convergence of AI, data, automation, and platform scale. This has reshaped how businesses operate, and how consumers will interact with both the digital and the physical world going forward.
Companies like Strategy and CrowdStrike could benefit through the proliferation of next-gen currencies, and the rising demand of cybersecurity. Meanwhile, Tesla’s integrated approach to software, AI, and energy places it at the forefront of the shift toward intelligence, connected hardware ecosystems.
Looking ahead for HHIS
HHIS holds positions that use modest leverage of 25%. The aim is to bolster income and upside capture. Of course, leverage does work both ways, meaning it can magnify price movements on the upside and the downside. Our investment management team monitors this every day for each position in HHIS, recalibrating back to a manageable level to maintain the appropriate leverage exposure.
As we look ahead, our investment management team expects continued growth, broader adoption, and a rapidly expanding single-stock ETF category in Canada. Currently, we have 35 unique companies to choose from in the U.S. and Canada. There is the Harvest Canadian High Income Shares ETF (TSX: HHIC), which offers exposure to a portfolio of top Canadian equities, with call options and leverage applied to generate high monthly cash distributions. There is also the non-levered version of HHIS – the Harvest High Income Equity Shares ETF (TSX: HHIH).
Investors also have multiple purchase options, including some ETFs with USD, CAD, in levered and some non-levered forms.
A year later, and HHIS is doing exactly what it was designed to do from its inception: Deliver access to high-growth large-cap U.S. companies, with high monthly income.
Disclaimer
For information purposes only. Commissions, management fees, and expenses may be associated with investing in the Funds. Please read the relevant prospectus before investing. The Funds are not guaranteed, their values fluctuate frequently, and past performance may not be repeated. Distributions are paid in cash unless you elect to participate in a distribution reinvestment plan, in which case they will be reinvested into available Class units of the Fund you own. If a Fund distributes more than it earns, the difference will constitute a return of capital.
Certain statements in this communication are forward-looking statements (“FLS”), including, but not limited to, those identified by words such as “expect,” “intend,” “will,” and similar expressions, as they relate to the Fund. These statements are not historical facts but reflect Harvest’s current expectations regarding future results or events. FLS are subject to risks and uncertainties that may cause actual results or events to differ materially from current expectations. Although Harvest believes the assumptions underlying FLS are reasonable, they are not guarantees of future performance. Individuals should not place undue reliance on such statements due to their inherent uncertainty. Harvest undertakes no obligation to update or revise any FLS or related information, except as required by law.
