OAKVILLE, Ontario – (BUSINESS WIRE – French Press Release) –Harvest Portfolios Group Inc. (“Harvest”) is pleased to announce the completion of the initial offering of Class A Units of 5 new Enhanced Equity Income ETFs pursuant to a prospectus dated August 30, 2022 filed with the securities regulatory authorities in all of the Canadian provinces and territories. Class A units of the 5 new ETFs will commence trading on the TSX today under the ticker symbols outlined below.
“These ETFs access the same portfolios of leading companies and active & flexible covered call strategies used in their underlying ETFs”
The new Enhanced Equity Income ETFs each give investors access to an existing Harvest equity income ETF with a leverage component of approximately 25%. The addition of leverage enhances the annualized yield from the underlying ETF, and raises both the risk-return profile and the market growth prospects of the ETF.
“Harvest has a strong, established reputation for providing equity income ETFs to Canadian investors,” said Harvest President & CEO Michael Kovacs. “The new Enhanced Equity Income ETFs build on that foundation, giving investors higher monthly income by investing in an established equity income ETF with the addition of modest leverage.”
The ETFs names, tickers, and initial target yields are outlined below.
|Initial Target Yield
|Underlying ETF Investment
|Harvest Tech Achievers Enhanced Income ETF
|Harvest Tech Achievers Growth & Income ETF
|Harvest Healthcare Leaders Enhanced Income ETF
|Harvest Healthcare Leaders Income ETF
|Harvest Equal Weight Global Utilities Enhanced Income ETF
|Harvest Equal Weight Global Utilities Income ETF
|Harvest Brand Leaders Enhanced Income ETF
|Harvest Brand Leaders Plus Income ETF
|Harvest Canadian Equity Enhanced Income Leaders ETF
|Harvest Canadian Equity Income Leaders ETF
The first monthly distributions from these ETFs will have a record date of November 30, 2022 with a payable date of December 9, 2022.
“These ETFs access the same portfolios of leading companies and active & flexible covered call strategies used in their underlying ETFs,” Kovacs said. “But they come with a higher yield that many Canadian investors are demanding.”
The Harvest Enhanced Equity Income ETFs’ investment objectives are to provide Unitholders with high monthly cash distributions and the opportunity for capital appreciation by investing, on a levered basis, in an underlying Harvest Equity Income exchange traded mutual fund managed by the manager as specified by the prospectus.
The underlying ETFs’ investment objectives are to provide unitholders with (i) the opportunity for capital appreciation; (ii) monthly cash distributions; and (iii) lower overall volatility of portfolio returns than would otherwise be experienced by owning Equity Securities of the specific ETF’s investable universe directly. To achieve lower overall volatility of portfolio returns, the underlying ETFs will generally write covered call options on up to 33% of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors.
About Harvest ETFs
Founded in 2009, Harvest ETFs is an independent Canadian Investment Fund Manager managing $2.7 billion in assets for Canadian Investors. At Harvest ETFs, our guiding principles are premised on building wealth for our clients through ownership of strong businesses that have the potential to grow & generate steady income over time. Harvest ETFs offers an innovative suite of exchange traded funds, mutual funds and publicly-listed structured fund products designed to satisfy the long-term growth and income needs of investors. We pride ourselves in creating trusted investment solutions that meet the expectations of our investors.