HDIF & HRIF grow holdings with addition of Travel Income ETF


June 1, 2023

By Paul MacDonald, CFA

The Harvest Diversified Monthly Income ETF (HDIF:TSX) and the Harvest Diversified Equity Income ETF (HRIF:TSX) both added a new ETF to their holdings in May of 2023. These multi-sector income ETFs, which already hold six Harvest equity income ETFs in their portfolios, will now invest in the Harvest Travel & Leisure Income ETF (TRVI:TSX).

Both HDIF and HRIF are built with a straightforward purpose: to deliver a high degree of diversification and consistent monthly income for unitholders. TRVI adds to both diversification and income potential. It brings a portfolio of 30 large-cap travel industry leaders to the HDIF and HRIF portfolios, which will now hold close to 150 large-cap companies in their combined underlying portfolios. It also brings additional income from its active & flexible covered call option strategy.

Income and large-cap diversification are what investors know HDIF and HRIF for and what TRVI brings more of.

Why is the Travel industry worth investing in?

The global travel industry is set up for long-term growth. Demographic trends point to high and resilient demand for travel. Baby boomers, the largest and richest generation in North American history, are now in or entering retirement. Those early retirement years are prime travel time, and baby boomers are set to travel more frequently now.

We are also seeing the rise of millennial consumers, who are entering their prime earning years. Millennials have shown a strong preference for experiential spending, rather than acquiring things. Travel, especially travel facilitated by digital bookings services, is a key lifestyle priority for many North American millennials.

In addition to these long-term trends, there has been some recent positivity in Travel sectors as well. As the world emerged from the COVID-19 pandemic last year we saw how huge pent-up demand for travel was. Despite high fuel prices and record inflation, North Americans travelled in large numbers, often on bigger and more expensive “bucket list” trips.

That demand has continued into 2023 so far. Q1 earnings reports from key airlines and hotel companies point to significant demand for travel and leisure among North American and global consumers.   

What does TRVI, specifically, bring to HDIF and HRIF?

TRVI delivers direct exposure to the positive tailwinds behind the travel industry. It does so by combining a diverse array of companies from different investment sectors that each capture a key aspect of the travel industry.


TRVI is more than just an airline or hotel ETF. It tracks the Solactive Travel & Leisure Index GTR, which includes cruises, casinos, and crucially the online travel booking sites like Airbnb and Booking.com that so many travelers use for their trips. By going outside one particular market sector to create a diversified index portfolio, TRVI is able to expose investors to the whole of the North American travel industry, not to mention the global lines of business many of these North American companies engage in. 

Adding TRVI into HDIF and HRIF means those ETFs can now deliver exposure to an additional 30 more large-cap leading companies, with long-term growth tailwinds, resilient recent demand, and high income, bringing the total unique positions to nearly 150 companies, with no one position currently more than 2% weight on a look-through basis.

Adding sector and income diversification

These two ETFs both combine portfolios of underlying ETFs using active & flexible covered call option strategies to generate consistent monthly cashflow. HDIF also incorporates a modest leverage component, while HRIF uses no leverage. That active & flexible covered call option strategy has a few key advantages over passive covered call strategies. Notably, because portfolio managers can adjust the amount of the portfolio they sell calls on—within a 33% limit—they can expose more of the portfolio to potential upside where opportune and actually monetize market volatility.

The Travel & Leisure industry is well suited to an active covered call strategy because, as a consumer discretionary market area, it can experience higher than average short-term volatility. TRVI is able to turn that volatility into cashflow. Income generated from options premiums can offset any potential downside, while the portfolio can remain exposed to potential upside.

Over the long-term however we expect that TRVI will contribute consistently high income into the HDIF and HRIF portfolios.

What does TRVI entering HDIF and HRIF mean for investors?

Put simply, this is a net positive for both HDIF and HRIF. They are growing their portfolios with the addition of 30 new large-cap companies, and they are bolstering their income components with another high-yield ETF in the mix. TRVI delivers a large-cap portfolio of leading businesses in a growth industry with high income.

Paul MacDonald

Paul MacDonald, CFA

Paul MacDonald is the Chief Investment Officer and Portfolio Manager at Harvest ETFs. He has over 20 years investment management experience and currently leads the Harvest investment team. He oversees all of Harvest’s ETF strategies, leads Harvest’s covered call options trading, and plays a key role in new product development. He is considered an industry expert on call options strategies and the Healthcare sector, with regular media appearances on BNN Bloomberg and in the Globe & Mail.

HDIF | Harvest Diversified Monthly Income ETF

Diversified Monthly
Income ETF


Diversified Equity
Income ETF


For Information Purposes Only. All comments, opinions and views expressed are of a general nature and 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.

You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund(s) on the TSX. If the units are purchased or sold on the TSX, investors may pay more than the current net asset value when buying units of the Fund(s) and may receive less than the current net asset value when selling them. There are ongoing fees and expenses associated with owning units of an investment fund. Investment funds are not guaranteed, their values change frequently and past performance may not be repeated. An investment fund must prepare disclosure documents that contain key information about the fund. You can find more detailed information about the fund in these documents.

Certain statements in the Harvest Blog are forward looking Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS.

FLS are not guarantees of future performance and are by their nature based on numerous assumptions, which include, amongst other things, that (i) the Fund can attract and maintain investors and have sufficient capital under management to effect their investment strategies, (ii) the investment strategies will produce the results intended by the portfolio managers, and (iii) the markets will react and perform in a manner consistent with the investment strategies. Although the FLS contained herein are based upon what the portfolio manager believe to be reasonable assumptions, the portfolio manager cannot assure that actual results will be consistent with these FLS.

Unless required by applicable law, Harvest Portfolios Group Inc. does not undertake, and specifically disclaim, any intention or obligation to update or revise any FLS, whether as a result of new information, future events or otherwise.