Enhance Equity Income ETFs
Investment Philosophy
Harvest Enhanced Equity Income ETFs are built on the track record of Harvest Equity Income ETF portfolios. These ETFs apply modest leverage to existing Harvest equity income ETFs at approximately 25% of Net Asset Value. This leverage results in enhanced annualized yield, monthly cashflow, and growth prospects for the ETF.
The Impact of Enhanced Strategy
For every $1 invested in the ETF Modest Leverage is applied by borrowing around $0.25 and adding it to the principal
That combined investment of $1.25 generates Enhanced Income as the $1 investment participates in $1.25 worth of income generation from covered call strategies and dividends
Growth Prospects are also enhanced by leverage while overall risk-return profile is raised
Equity Income ETFs
The Harvest investment philosophy is premised on investing in high-quality companies, with strong businesses offering steady growth. To provide an attractive income, we use a covered call option strategy to enhance the natural dividend yield of the portfolio and may reduce some of the volatility associated with equity investing. Using proprietary models, the investment management team will assess the various positions in the portfolios and corresponding premiums in order to write the required amount of options to generate the premium income.