At Harvest we have consistently delivered growth opportunities and income for investors through our ETFs. We use a simple, powerful investment philosophy: owning high-quality companies in sectors with long-term growth tailwinds using a covered call strategy to maximize income on top of existing dividend yields.

We launched HDIF to capture the success of some of our equity income ETFs, proven income-generators for Canadian investors. This ETF will give investors access to the growth potential and income we are known for at Harvest through a single investment product.

HDIF’s income mechanics begin with the ETFs it holds. The portfolio holds high-quality companies and investment grade government bonds that generate a strong yield. We can then exceed the income of a typical Canadian dividend ETF by using a covered call strategy to generate premiums on up to 33% of the ETF’s holdings while offsetting volatility.

In HDIF, we have applied leverage at a rate of 1.25. This leverage increases both the return and yield on the ETF.

HDIF was built with income-seekers in mind. Investors of all stripes and tax brackets need passive income generation, but pre-retirees and retirees need income acutely now. With interest rates as low as they have been for the past several years, many traditional income-generating products are paying less than the rate of inflation. That means that many of the products people relied on to supplement their CPP benefits aren’t providing enough to live on.

Since traditional fixed income often can’t offset government-mandated drawdowns on RRIF accounts, many retirees are watching their savings dwindle. Thousands of Canadians are worried that they might outlive their savings. A high yield income product like HDIF can go a long way in making this complex situation simpler.

What’s great about HDIF is that it captures the unique performance drivers behind each of its component ETFs. HHL provides access to the healthcare sector’s huge and unchanging demand, as well as the innovation large-cap companies drive and capture in this space. HTA pulls from the tech giants that continue to be the biggest and best sustainable growth drivers. HUTL maximizes the yield with the defensive characteristics of utilities by focusing on companies with scale, diversified across the globe. HUBL puts investors at the beating heart of the world’s largest economy: the US banking sector. HLIF adds crucial Canadian exposure from some of this country’s established businesses. TRVI pulls together a multi-sector portfolio of travel companies with long-term growth tailwinds. Finally, HBF gives diversified access to the world’s biggest, best, and most recognizable brands, companies with an unprecedented key role in the functioning of our global economy.

Put all that together and you get unique performance drivers with long-term prospects.

HDIF stands out in the market because it pulls from our existing expertise. Where many other ‘funds of funds’ need to pull from a range of ETF providers and charge an additional fee on top of underlying management costs, HDIF is comprised of only Harvest ETFs and charges no extra fee. That’s because we already have a track record of providing growth and income through our ETFs, we can combine them at no extra cost, limiting any performance-inhibiting fees.

HDIF is different because Harvest is different. We already do what we say we’re going to do in each of these ETFs, now we’re putting them all in one package.