Technology ETFs for Growth Opportunity and Income Seekers
TSX-listed tech ETFs deliver exposure to this
growth sector plus high passive income
Technology ETFs from Harvest access the tech sector by investing in its leaders.
They deliver the growth prospects of large-cap tech stocks with high monthly income.
Why Technology? Why Harvest?
The technology sector has been a market growth driver for over a decade.
Large-Cap Tech Outpaces Growth of Broader Markets Over Time
S&P 500 vs S&P 500 Information Technology Sector – 2013-2024
Source: S&P Global as at October 31, 2024
Technology has become intertwined with global economic growth. Almost every modern industry relies on technology to generate value.
We use these technologies every day, to shop, work, and play.
Today, the biggest tech companies lead the sector, generating value from technologies and needs like cyber security, cloud computing, and AI.
They have become strong businesses, with solid financials, histories of growth, and frequent dividend payment.
Technology ETFs from Harvest capture the world’s technology leaders in their stock portfolios.
Large-Cap Tech Companies have Raised Dividends Over Time
Total Annual Dividends Paid by S&P 500 Technology Companies
Source: Harvest ETFs, Bloomberg. As at December 31, 2023
Evolutionary and Revolutionary Themes
Capturing value from major innovations.
Cloud Infrastructure
Artificial Intelligence
Big Data
Virtual/Augmented Reality
Communications
Cyber Security
Investing in Large-Cap Tech Companies
HTA & HTAE deliver exposure to a portfolio of 20 large-cap tech companies diversified across key sub-sectors.
As at October 31, 2024
A Tech + Income Strategy
HTA and HTAE have a high income component. They pay monthly cash distributions generated through an active and flexible covered call strategy. That income delivers the following benefits:
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- High annualized yields paid as monthly distributions
- Downside protection via options premiums
- Volatility monetization
- Consistent monthly cashflows
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The Harvest Tech Achievers Enhanced Income ETF (HTAE) adds roughly 25% leverage to its investment in HTA, delivering higher income and an elevated risk-return profile.
HTA and HTAE provide Canadian investors exposure to leading tech stocks with high income.
Tech Dominates the S&P 500
Did you know the Information Technology Sector now accounts for more than 25% of the S&P 500 index? And that doesn’t even include companies like Amazon, which are classified as consumer discretionary.
S&P 500 Breakdown
Source: Harvest ETFs, Bloomberg. As at October 31, 2024
Key Facts
As at 2024/11/21
TICKER
HTA
TSX
CURRENCY
CAD
Hedged
NAV
$19.30
Updated Daily
MKT PRICE CLOSE
$19.31
Updated Daily
NET AUM*
$712.75M
Updated Daily
MGMT STYLE
Active
With Covered Calls
CASH DISTRIBUTION***
Monthly
Frequency
LAST DISTRIBUTION
$0.1300
Cash, Per Unit
CURRENT YIELD
8.08%
Updated Daily
DISTRIBUTION
$8.4711
Total, Since Inception**
Key Facts
As at 2024/11/21
TICKER
HTAE
TSX
CURRENCY
CAD
Hedged
Underlying ETF
NAV
$17.67
Updated Daily
MKT PRICE CLOSE
$17.67
Updated Daily
NET AUM*
$101.16M
Updated Daily
MGMT STYLE
Active
With Covered Calls
Underlying ETF
CASH DISTRIBUTION***
Monthly
Frequency
LAST DISTRIBUTION
$0.1500
Cash, Per Unit
CURRENT YIELD
10.19%
Updated Daily
HOLDING
HTA
Underlying ETF
Key Facts
As at 2024/11/21
TICKER
HTA
TSX
CURRENCY
CAD
Hedged
NAV
$19.30
Updated Daily
MKT PRICE CLOSE
$19.31
Updated Daily
NET AUM*
$712.75M
Updated Daily
MGMT STYLE
Active
With Covered Calls
CASH DISTRIBUTIONS***
Monthly
Frequency
LAST DISTRIBUTION
$0.1300
Cash, Per Unit
CURRENT YIELD
8.08%
Updated Daily
DISTRIBUTION
$8.4711
Total, Since Inception**
Key Facts
As at 2024/11/21
TICKER
HTAE
TSX
CURRENCY
CAD
Hedged
Underlying ETF
NAV
$17.67
Updated Daily
MKT PRICE CLOSE
$17.67
Updated Daily
NET AUM*
$101.16M
Updated Daily
MGMT STYLE
Active
With Covered Calls
Underlying ETF
CASH DISTRIBUTION***
Monthly
Frequency
LAST DISTRIBUTION
$0.1500
Cash, Per Unit
CURRENT YIELD
10.19%
Updated Daily
HOLDING
HTA
Underlying ETF
An Award Winning ETF
At the end of 2023 HTA was named the Best Sector Equity Fund over 5 years – for its “U” class units by the Canadian LSEG Lipper Awards.
This recognition from a global industry leader validates the thesis behind HTA as a Canadian Technology ETF: that combining industry leaders with covered call option income can result in strong performance.
Meet the Manager
James Learmonth, CFA
James Learmonth is the Senior Portfolio Manager at Harvest ETFs and the lead manager for HTA and HTAE. James brings over two decades of experience, covering a wide range of equities and covered call options trading strategies. In addition to Harvest’s technology strategies, James currently leads portfolio management of Harvest’s Global Brands and US banking strategies and plays a key role in the execution of our covered call options trading.
Recent Technology Insights
Disclaimer
Harvest Tech Achievers Growth & Income ETF (HTA) originally commenced operations as a TSX listed closed-end fund on May 26, 2015 and converted into an exchange-traded fund on June 22, 2017.
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. 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. The funds are not guaranteed, their values change frequently and past performance may not be repeated.
Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into the Class of units that you own of the Fund. If the Fund earns less than the amounts distributed, the difference is a return of capital. Tax, investment and all other decisions should be made with guidance from a qualified professional.
The current yield represents an annualized amount that is comprised of 12 unchanged monthly distributions (using the most recent month’s distribution figure multiplied by 12) as a percentage of the closing market price of the Fund. The current yield does not represent historical returns of the ETF but represents the distribution an investor would receive if the most recent distribution stayed the same going forward.
* Represents aggregate AUM of all classes denominated in Canadian dollars.
** Inception Date: HTA Class A is 2015/05/26; HTA Class B is 2020/03/12; HTA Class U is 2017/06/22; HTAE is 2022/10/25.
*** In addition to cash distributions, the Fund could have notional non-cash distributions which are paid annually (if any). There is no impact on net asset value per unit. The notional distribution is added to the cost base of the ETF and is taxable if not held in a registered account (RRSP/RRIF/TFSA, FHSA and RESP).
Where Can I Go to Invest?
Contact a Financial Advisor
Consult with your financial advisor to explore how Harvest funds may fit your investing objectives.
Buy Online
Invest in Harvest funds online through any leading brokerage platform with access to Canadian stock exchanges.
Ready to Invest?
Buying and selling our ETFs is simple: Investors can trade through their self-directed account, or contact their discount broker or financial advisor.
Below are links to some of the self directed brokerage firms available in Canada.
Use and access of third-party websites is at your own risk. Harvest ETFs is not responsible for financial advice, content, functionality or any other aspect of third-party sites. Harvest ETFs is not affiliated with any of these on-line financial service firms. Harvest ETFs will not be compensated by these firms when you place a trade or open an account. The listing of the on-line financial services firms above is not a recommendation or endorsement. By accessing the above websites, you are leaving the Harvest ETFs website and going to a 3rd party site that is independent of Harvest ETFs. Canadian investors may only purchase or trade Harvest ETFs through registered investment dealers, including but not limited to, the online brokerage firms listed above.
