Covered Call Option ETFs
Generate Cashflow – Monetize Market Movement
Harvest ETFs is a market leader in call option ETFs. These Covered Call ETFs generate cashflows for unitholders from a portfolio of securities with a covered call option writing strategy. Harvest launched its first ETFs in 2016 and has established itself as one of the top option writing firms in Canada. We use an active and flexible call option strategy to build high yield ETFs that pay monthly distributions and still capture the opportunity for market growth. Watch this helpful explainer to learn more.
$ CAD
Total distributions paid by Harvest Income ETFs since ETF inception October 2016 to October 2024
Active & Flexible Covered Call Option Writing Strategy
A call option gives the buyer the right to purchase an asset at a set price within a specific period, and the seller receives a premium. At Harvest ETFs, our actively managed strategy allows flexibility in selling call options, enhancing income and managing exposure to market growth.
- Equity Income ETFs: Cap call option sales at 33% of holdings to retain growth potential.
- Fixed Income ETFs: Utilize up to 100% for higher premiums and reduced volatility.
- Balanced Income ETFs: Invest a minimum of 75% in ETFs that write covered calls for balanced income and growth.
- Equity Enhanced Income ETFs: Cap call option sales at 33% of holdings to retain growth potential (plus up to 25% leverage).
This approach optimizes income generation while maintaining strategic market exposure.
Our Covered Call ETFs
Our Covered Call ETFs consistently distribute income monthly. At the core is our team, which has over six decades of combined investment management experience. It implements and executes this strategy through rigorous analyses.
Equity Income ETFs
Harvest’s Equity Income ETFs focus on large-cap companies, the leaders of their industries
Fixed Income ETFs
Harvest fixed income ETFs invest in intermediate to long-duration US Treasury bonds and short-term treasury bills (T-Bills) of the Government of Canada, which are among the safest investments available
Balanced Income ETFs
Harvest’s Balanced Income ETFs offer exposure to our Equity Income ETFs and Fixed Income ETFs, providing balance and high monthly income
High Income
The monthly income paid by these ETFs is high – often higher than the rate of inflation
Tax Advantage
Income generated with covered call options is taxed as capital gains – a lower rate than typical income
RRSP Eligible
Harvest Equity Income ETFs can be held in registered accounts which can be tax efficient as investors save
Why Use Call Option ETF for Income Now?
Markets shift up and down every day but call option ETFs give investors the surety of consistent monthly income. An active and flexible covered call option strategy will also allow investors to capture more upside opportunity in certain market conditions while meeting their income needs.
Example of Harvest ETFs & Their Yields
Call Option ETF Insights
Generating Tax Efficient Cash Flows Using Covered Calls
Covered call ETFs can generate tax efficient cash flows, learn about key considerations such as capital gains tax exposure and ROC here.
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Disclaimer
For Information Purposes Only.
Commissions, management fees and expenses all may be associated with investing in HARVEST Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and do not take into account income taxes payable by any securityholder that would have reduced returns. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. The information contained herein should not be considered as advice and/or a recommendation to purchase or sell the mentioned securities or used to engage in personal investment strategies. Tax, investment and all other decisions should be made with guidance from a qualified professional. Certain statements included in this communication constitute forward-looking statements, including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to the Investment Fund. The forward-looking statements are not historical facts but reflect the Fund’s, Harvest and the Manager of the Fund’s current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, Harvest and the Manager of the Fund believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements 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 Fund, Harvest and the Manager of the Fund undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
