August traditionally is when families travel. Especially if members of the family are still studying, because come August, most schools, colleges, and universities have let out for summer break. And so, travel enters the chat.
As any reader of this column knows, I love to travel, and we’ve talked before about how to make money to fund your travel plans. But once you’re on vacation, if you’re anything like me, you look around yourself, absorb the culture of the place you’re in, and wonder how to take a little bit of that home with you. Sometimes, that could be souvenirs. Other times, it could be recipes or food. Recently, I’ve been thinking about how nice it would be to get a little bit of the places I visit into my portfolio.
And that’s when I started thinking about the newly launched Harvest International High Income Shares ETF, (TSX: HHII)
Say ‘Hi’ to HHII
We’ve talked before about the popular Harvest High Income Shares suite, which turns two years old this year. Apart from the single stock ETF options, investors can also access diversified all-in-one portfolios, from Harvest Diversified High Income Shares ETF (TSX: HHIS), which targets trending and leading U.S. companies that possess high growth prospects, the Harvest High Income Equity Shares ETF (TSX: HHIH), the unlevered version of HHIS, and the Harvest Canadian High Income Shares ETF (TSX: HHIC), a portfolio of 10 leading Canadian equities. Now, an international variant has entered the mix – the Harvest International High Income Shares ETF (TSX: HHII).
The ETF holds a portfolio of 15 securities, including the top ten holdings which each comprise 6.7% of the portfolio. These Shell PLC, BHP Group, Embraer, Anheuser-Busch InBev, Novartis, Barclays, HSBC Holdings, Nokia, STMicroelectronics, and SK Hynix. Already, you can see the diversification of countries and sectors.
Will I Get Income with HHII?
HHII seeks to generate monthly income through an actively managed covered call strategy. The fund offers a multi-sector portfolio that captures international companies that are positioned for strong growth. It is designed to deliver consistent, monthly income alongside growth opportunities.
HHII will seek to provide its unitholders with high monthly cash distributions and the opportunity for capital appreciation. Additionally, HHII utilizes a covered call strategy to enhance portfolio income potential and lower portfolio volatility. The fund writes covered calls on up to 50% of the portfolio securities, which helps to lower the volatility of the fund’s return and provides monthly cash flows. With a write level of up to 50%, there is still enough exposure to capture the potential upside.
As Harvest ETFs explains it: “Covered call option writing is about striking the right balance. At its most basic level, when you write a covered call option, you gain premiums but can miss some market upside.” You can find out more about covered calls here.
As my colleague Ambrose O’Callaghan recently wrote: “Harvest ETFs has built a reputation for generating consistent monthly income through this active covered call writing strategy throughout its over 15-year history. It is one of the largest investment fund companies engaged in call option strategies in Canada. The investment team is one of the most knowledgeable in option writing and equity investing, possessing many decades of experience..”
From a tax standpoint, it is important for Canadian investors to remember that this income received from covered calls is considered capital gains and is not considered interest income. This is important, because 50% of income from capital gains (up to $250,000) is generally tax free, while the remainder is taxed at your marginal rate. However, interest income is taxed as ordinary income.
How Much Does HHII Cost?
The management fee on HHII is 0.65% as of August 31, 2026. For this price, investors get a carefully curated and regularly reviewed portfolio of international stocks diversified across countries and sectors, along with covered call options written on a portion of the portfolio to ensure monthly income.
How to Buy HHII?
Investors can buy HHII via online discount brokerages, or through brokers. The ETF may be held both in registered accounts such as an RRSP, RESP or TFSA, or in non-registered accounts.
What is the Risk Rating of HHII?
Investors should remember that this is an ETF that invests in stocks and so its value can either rise or fall. What this means is that investors could lose money, depending on when they buy and sell this ETF. Review the ETFs Prospectus for more information on associated risks.
As explained in HHII’s ETF FACTSHEET, “One way to gauge risk is to look at how much the ETF’s returns change over time. This is called ‘volatility.’ In general, ETFs with higher volatility will have returns that change more over time. They typically have a greater chance of losing money and may have a greater chance of higher returns. ETFs with lower volatility tend to have returns that change less over time. They typically have lower returns and may have a lower chance of losing money.”
Harvest has rated the volatility of this ETF as high.
Who is HHII For?
HHII may be appropriate for investors who are looking for exposure to equities and income, want a medium to long-term investment, and can handle the ups and downs of stock markets.
If you are a Do-it-yourself (DIY) investor who likes to build and manage your own investment portfolio, HHII provides you access to an international portfolio of leading equities, overlayed with an active covered call option writing strategy that is managed by the Harvest ETFs investment team. It employs modest leverage, providing amplified market exposure without the need for tools like margin accounts, futures, or options, which can be challenging to manage directly.
If you are an investor who values steady cash flow to support your investment goals, income-focused investing through HHII offers a simple, practical solution. It’s designed to provide regular monthly income while keeping you invested in companies built for long-term growth.
If you like diversification and want a single investment that provides diversified exposure to leading and trending companies, consistent monthly income, and long-term growth potential, while also avoid managing multiple holdings and/or rebalancing your portfolio, you could consider HHII.
In short, come and see if the all-in-one international solution, the Harvest International High Income Shares ETF (TSX: HHII) is right for you!
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest High Income Shares ETFs managed by Harvest Portfolios Group Inc. (the “Funds” or a “Fund”). Please read the relevant prospectus before investing. The Funds’ returns are not guaranteed, their values change frequently, and past performance may not be repeated. Tax investment and all other decisions should be made with guidance from a qualified professional.
Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available ETF Class A Units of the Fund. If a Fund earns less than the amounts distributed, the difference is a return of capital.
Certain statements included in this communication constitute forward-looking statements (“FLS”, including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to the Funds. The FLS are not historical facts but reflect the Harvest’s and the portfolio manager of the Funds current expectations regarding future results or events. These FLS are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest and the portfolio manager of the Funds believe that the assumptions inherent in the FLS are reasonable, FLS are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Funds, Harvest and the portfolio manager of the Funds undertake no obligation to update publicly or otherwise revise any FLS or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
“International Issuers” means a public company that is (i) incorporated or headquartered in a country that is not Canada or the United States of America; and (ii) has a market capitalization in excess of C$10 billion at the time of investment.
