Technology ETFs for Growth Opportunity and Income Seekers

TSX-listed tech ETFs deliver exposure to this
growth sector plus high passive income

3

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.

Harvest Tech Achievers
Growth & Income ETF

%

Current Yield (as of 2024/10/31)

Harvest Tech Achievers
Enhanced Income ETF

%

Current Yield (as of 2024/10/31)

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.

Synopsys Logo
Synopsys Logo

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:

      • High annualized yields paid as monthly distributions
      • Downside protection via options premiums
      • Volatility monetization
      • Consistent monthly cashflows

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 2024/11/12

TICKER

HTA

TSX
CURRENCY

CAD

Hedged
NAV

$19.69

Updated Daily
MKT PRICE CLOSE

$19.73

Updated Daily
NET AUM*

$730.82M

Updated Daily

MGMT STYLE

Active

With Covered Calls
CASH DISTRIBUTION***

Monthly

Frequency
LAST DISTRIBUTION

$0.1300

Cash, Per Unit
CURRENT YIELD

7.91%

Updated Daily
DISTRIBUTION

$8.4711

Total, Since Inception**

Key Facts

As at 2024/11/12

TICKER

HTAE

TSX
CURRENCY

CAD

Hedged
Underlying ETF
NAV

$18.15

Updated Daily
MKT PRICE CLOSE

$18.10

Updated Daily
NET AUM*

$103.44M

Updated Daily

MGMT STYLE

Active

With Covered Calls
Underlying ETF
CASH DISTRIBUTION***

Monthly

Frequency
LAST DISTRIBUTION

$0.1500

Cash, Per Unit
CURRENT YIELD

9.94%

Updated Daily
HOLDING

HTA

Underlying ETF

Key Facts

As at 2024/11/12

TICKER

HTA

TSX
CURRENCY

CAD

Hedged
NAV

$19.69

Updated Daily
MKT PRICE CLOSE

$19.73

Updated Daily
NET AUM*

$730.82M

Updated Daily

MGMT STYLE

Active

With Covered Calls
CASH DISTRIBUTIONS***

Monthly

Frequency
LAST DISTRIBUTION

$0.1300

Cash, Per Unit
CURRENT YIELD

7.91%

Updated Daily
DISTRIBUTION

$8.4711

Total, Since Inception**

Key Facts

As at 2024/11/12

TICKER

HTAE

TSX
CURRENCY

CAD

Hedged
Underlying ETF
NAV

$18.15

Updated Daily
MKT PRICE CLOSE

$18.10

Updated Daily
NET AUM*

$103.44M

Updated Daily

MGMT STYLE

Active

With Covered Calls
Underlying ETF
CASH DISTRIBUTION***

Monthly

Frequency
LAST DISTRIBUTION

$0.1500

Cash, Per Unit
CURRENT YIELD

9.94%

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).

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