Harvest Diversified Monthly Income ETF

Reliable Income – Diverse Growth Opportunities

The Harvest Diversified Monthly Income ETF is built to deliver the consistent monthly income and diverse growth opportunities that Harvest is known for. This ETF is an equal weight basket of 5 of Harvest’s equity income ETFs, a multi-sector portfolio capturing a large and diverse set of high-quality companies. Existing yields are combined with a covered call option to generate income and offset volatility.

%

Target Yield

Key Facts

As at 2022/05/16

TICKER

HDIF

TSX
CURRENCY

CAD

-
NAV

$8.90

Updated Daily
MKT PRICE

$8.92

Updated Daily
HOLDINGS

5

ETFs
MGMT STYLE

Active

With Covered Calls
TARGET YIELD

8.50%

Annual
DISTRIBUTIONS

$0.0708

Per unit
DISTRIBUTIONS

Monthly

Frequency
RISK RATE

Medium

-

Investment Objective

Harvest Diversified Monthly Income ETF offers a portfolio of 5 equally weighted Harvest ETFs positioned to deliver steady monthly income. The multi-sector portfolio is comprised of large global companies diversified across key sectors: Healthcare, Global Brands, Technology, Utilities, and US Banks. The ETF is designed to provide a consistent monthly income stream with an opportunity for growth. The portfolio is reconstituted and rebalanced at a minimum quarterly. To generate an enhanced monthly distribution yield, an active covered call strategy is applied on up to 33% in each equity securities held in underlying portfolios.

Michael Kovacs

President & CEO

Harvest ETFs

HDIF Q&A

Q1: Why did you launch the Harvest Diversified Monthly Income ETF?

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.

Q2: What tools and strategies are in the fund to deliver its target 8.5% yield?

HDIF’s income mechanics begin with the ETFs it holds. Each ETF holds of between 15 and 30 equally weighted high-quality companies that already generate strong dividend 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, creating a product with a product with an initial monthly yield of around 8.5%.

Q3: Who is this ETF for?

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.

Q4: What are some long-term performance tailwinds behind each of the ETFs in this fund?

What’s great about HDIF is that it captures the unique performance drivers behind each of its 5 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. 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.

Q5: How is the Harvest Diversified Monthly Income ETF different?

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.

Performance Catalysts

The Harvest Diversified Monthly Income ETF serves as a source of income and growth focus at a time when Canadian investors need both. It simplifies a complex universe of investable products, it provides stability through diversification across sectors and geographies, while applying modest leverage and a covered call strategy to achieve target yields around 8.5%.

Harvest Healthcare Leaders Income ETF

HEALTHCARE

Growing demand from an aging developed world and richer developing world plus regular innovation from large-cap companies like Johnson & Johnson.

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Harvest Tech Achievers Growth & Income ETF

TECHNOLOGY

Huge scale, growth drivers for a decade, companies like Microsoft that are essential to our current world and will be crucial to new wave tech like the cloud, 5G, Blockchain and the Metaverse.

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Harvest Brand Leaders Plus Income ETF

GLOBAL BRANDS

Leaders with large market share, diversified and meeting strict financial criteria. The resilience and global recognition of McDonalds, Nike, and Apple.

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Harvest US Bank Leaders Income ETF

US BANKS

Financial titans at the heart of the US economy. Companies like Bank of America or JPMorgan that power growth in the world’s richest country.

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Harvest Equal Weight Global Utilities Income ETF

UTILITIES

Diversified globally across developed European and North American markets in dominant companies that have scale in a sector where scale is everything.

LEARN MORE

ETF Quick Facts

Quick ETF FactsUnit
TSX CodeHDIF
CUSIP41753N102
CurrencyCAD
Inception Date2022/02/04
Distribution Per Unit*$0.0708
Distribution FrequencyMonthly
Management FeeZero Management Fee (ETF is subject to fees of the underlying ETFs in the portfolio)
Risk RatingMedium
*$0.0708 / unit distribution beginning March 31, 2022

Why Invest in HDIF Now

Sources:  Bloomberg, Harvest Portfolios Group Inc., ; Inflation based on StatsCan year over year CPI as at December 31, 2021

%

Target Yield

Benefits of investing in HDIF

  • One stop diversified core monthly income solution

  • Access to leading large-cap companies diversified across sectors and geographies

  • Exposure to powerful long-term growth trends

  • Consistent income yields at an 8.5% target

  • Modest leverage anticipated at an initial 1.25x to enhance income

  • Covered call strategy to enhance income potential and lower volatility

  • Zero management fee (subject to fees of the underlying ETFs held in the HDIF portfolio.)

Equal Weight Allocation to 5 Harvest Equity Income ETFs

As at April 29, 2022

HDIF Holdings

As at April 29, 2022
Harvest Healthcare Leaders Income ETF (HHL)
As at April 29, 2022
NameTickerWeightSectorCountry
Merck & Co., Inc.MRK US5.3%PharmaceuticalsUnited States
Thermo Fisher Scientific Inc.TMO US5.3%Life Sciences Tools & ServicesUnited States
AstraZeneca PLCAZN US5.1%PharmaceuticalsUnited States
Eli Lilly and CompanyLLY US5.1%PharmaceuticalsUnited States
Agilent Technologies, Inc.A US5.0%Life Sciences Tools & ServicesUnited States
Anthem, Inc.ANTM US5.0%Health Care Providers & ServicesUnited States
Bristol-Myers Squibb CompanyBMY US5.0%PharmaceuticalsUnited States
HCA Healthcare, Inc.HCA US5.0%Health Care Providers & ServicesUnited States
Novartis AGNVS US5.0%PharmaceuticalsUnited States
Pfizer Inc.PFE US5.0%PharmaceuticalsUnited States
UnitedHealth Group IncorporatedUNH US5.0%Health Care Providers & ServicesUnited States
Zoetis Inc.ZTS US5.0%PharmaceuticalsUnited States
Abbott LaboratoriesABT US4.9%Health Care Equipment & SuppliesUnited States
Boston Scientific CorporationBSX US4.9%Health Care Equipment & SuppliesUnited States
Johnson & JohnsonJNJ US4.9%PharmaceuticalsUnited States
Medtronic PLCMDT US4.9%Health Care Equipment & SuppliesUnited States
Regeneron Pharmaceuticals, Inc.REGN US4.9%BiotechnologyUnited States
Stryker CorporationSYK US4.9%Health Care Equipment & SuppliesUnited States
AbbVie Inc.ABBV US4.7%BiotechnologyUnited States
Amgen Inc.AMGN US4.7%BiotechnologyUnited States
Cash and other assets and liabilities1.9%
Market value of options(0.3)%
Foreign currency forwards(1.3)%
Harvest Tech Achievers Growth & Income ETF (HTA)
As at April 29, 2022
NameTickerWeightSectorCountry
Meta Platforms, Inc.FB US5.5%Interactive Media & ServicesUnited States
Visa Inc.V US5.3%IT ServicesUnited States
QUALCOMM IncorporatedQCOM US5.2%Semiconductors & Semiconductor EquipmentUnited States
salesforce.com, inc.CRM US5.2%SoftwareUnited States
Applied Materials, Inc.AMAT US5.1%Semiconductors & Semiconductor EquipmentUnited States
Microsoft CorporationMSFT US5.1%SoftwareUnited States
Texas Instruments IncorporatedTXN US5.1%Semiconductors & Semiconductor EquipmentUnited States
Accenture PLCACN US5.0%IT ServicesUnited States
Advanced Micro Devices, Inc.AMD US5.0%Semiconductors & Semiconductor EquipmentUnited States
Apple Inc.AAPL US5.0%Technology Hardware, Storage & PeripheralsUnited States
Intuit Inc.INTU US5.0%SoftwareUnited States
Adobe Inc.ADBE US4.9%SoftwareUnited States
Broadcom Inc.AVGO US4.9%Semiconductors & Semiconductor EquipmentUnited States
Keysight Technologies, Inc.KEYS US4.9%Electronic Equipment, Instruments & ComponentsUnited States
NVIDIA CorporationNVDA US4.9%Semiconductors & Semiconductor EquipmentUnited States
Oracle CorporationORCL US4.9%SoftwareUnited States
Alphabet Inc.GOOGL US4.8%Interactive Media & ServicesUnited States
Cisco Systems, Inc.CSCO US4.8%Communications EquipmentUnited States
Intel CorporationINTC US4.8%Semiconductors & Semiconductor EquipmentUnited States
Fortinet, Inc.FTNT US4.7%SoftwareUnited States
Cash and other assets and liabilities1.7%
Market value of options(0.5)%
Foreign currency forwards(1.3)%
Harvest Brand Leaders Plus Income ETF (HBF)
As at April 29, 2022
NameTickerWeightSectorCountry
Johnson & JohnsonJNJ US5.3%Health CareUnited States
McDonald's CorporationMCD US5.3%Consumer DiscretionaryUnited States
PepsiCo, Inc.PEP US5.3%Consumer StaplesUnited States
The Procter & Gamble CompanyPG US5.3%Consumer StaplesUnited States
Visa Inc.V US5.3%Information TechnologyUnited States
Microsoft CorporationMSFT US5.2%Information TechnologyUnited States
Apple Inc.AAPL US5.1%Information TechnologyUnited States
United Parcel Service, Inc.UPS US5.1%IndustrialsUnited States
UnitedHealth Group IncorporatedUNH US5.1%Health CareUnited States
Accenture PLCACN US5.0%Information TechnologyUnited States
Shell PLCSHEL US5.0%EnergyUnited States
Caterpillar Inc.CAT US4.9%IndustrialsUnited States
Intel CorporationINTC US4.9%Information TechnologyUnited States
NIKE, Inc.NKE US4.9%Consumer DiscretionaryUnited States
Alphabet Inc.GOOGL US4.8%Communication ServicesUnited States
Bank of America CorporationBAC US4.8%FinancialsUnited States
JPMorgan Chase & Co.JPM US4.8%FinancialsUnited States
Morgan StanleyMS US4.8%FinancialsUnited States
The Walt Disney CompanyDIS US4.8%Communication ServicesUnited States
Verizon Communications Inc.VZ US4.6%Communication ServicesUnited States
Cash and other assets and liabilities1.2%
Market value of options(0.3)%
Foreign currency forwards(1.3)%
Harvest US Bank Leaders Income ETF (HUBL)
As at April 29, 2022
NameTickerWeightSectorCountry
M&T Bank CorporationMTB US7.0%BanksUnited States
First Republic BankFRC US6.8%BanksUnited States
The Goldman Sachs Group, Inc.GS US6.8%Capital MarketsUnited States
Regions Financial CorporationRF US6.6%BanksUnited States
Morgan StanleyMS US6.5%Capital MarketsUnited States
Huntington Bancshares IncorporatedHBAN US6.4%BanksUnited States
U.S. BancorpUSB US6.4%BanksUnited States
The PNC Financial Services Group, Inc.PNC US6.2%BanksUnited States
Wells Fargo & CompanyWFC US6.1%BanksUnited States
Bank of America CorporationBAC US6.0%BanksUnited States
JPMorgan Chase & Co.JPM US6.0%BanksUnited States
Truist Financial CorporationTFC US6.0%BanksUnited States
Fifth Third BancorpFITB US5.9%BanksUnited States
KeyCorpKEY US5.8%BanksUnited States
Citigroup Inc.C US5.7%BanksUnited States
Citizens Financial Group, Inc.CFG US5.7%BanksUnited States
Cash and other assets and liabilities2.2%
Market value of options(0.3)%
Foreign currency forwards(1.7)%
Harvest Equal Weight Global Utilities Income ETF (HUTL)
As at April 29, 2022
NameTickerWeightSectorCountry
Edison InternationalEIX US3.8%Electric UtilitiesUnited States
The Southern CompanySO US3.8%Electric UtilitiesUnited States
Entergy CorporationETR US3.7%Electric UtilitiesUnited States
The Williams Companies, Inc.WMB US3.7%Oil, Gas & Consumable FuelsUnited States
Consolidated Edison, Inc.ED US3.6%Multi-UtilitiesUnited States
Duke Energy CorporationDUK US3.6%Electric UtilitiesUnited States
FirstEnergy Corp.FE US3.6%Electric UtilitiesUnited States
Fortis Inc.FTS CN3.6%Electric UtilitiesCanada
Kinder Morgan, Inc.KMI US3.6%Oil, Gas & Consumable FuelsUnited States
PPL CorporationPPL US3.6%Electric UtilitiesUnited States
SSE PLCSSE LN3.5%Electric UtilitiesUnited Kingdom
Telia Company ABTELIA SS3.5%Diversified TelecommunicationSweden
Emera IncorporatedEMA CN3.4%Electric UtilitiesCanada
ONEOK, Inc.OKE US3.4%Oil, Gas & Consumable FuelsUnited States
Avangrid, Inc.AGR US3.3%Electric UtilitiesUnited States
BCE Inc.BCE CN3.3%Diversified TelecommunicationCanada
National Grid PLCNG/ LN3.3%Multi-UtilitiesUnited Kingdom
TC Energy CorporationTRP CN3.3%Oil, Gas & Consumable FuelsCanada
Telefonica, S.A.TEF SM3.3%Diversified TelecommunicationSpain
TELUS CorporationT CN3.3%Diversified TelecommunicationCanada
Deutsche Telekom AGDTE GR3.2%Diversified TelecommunicationGermany
Endesa S.A.ELE SM3.2%Electric UtilitiesSpain
Koninklijke KPN NVKPN NA3.2%Diversified TelecommunicationNetherlands
Swisscom AGSCMN SW3.2%Diversified TelecommunicationSwitzerland
Telenor ASATEL NO3.0%Diversified TelecommunicationNorway
Verizon Communications Inc.VZ US2.8%Diversified TelecommunicationUnited States
Vodafone Group PLCVOD LN2.7%Wireless Telecommunication ServicesUnited Kingdom
E.ON SEEOAN GR2.5%Multi-UtilitiesGermany
ENGIE S.A.ENGI FP2.4%Multi-UtilitiesFrance
Fortum OyjFORTUM FH2.3%Electric UtilitiesFinland
Cash and other assets and liabilities1.9%
Market value of options(0.3)%
Foreign currency forwards(0.5)%

HDIF Investment Philosophy

Harvest Equity Income ETFs own high quality dividend-paying businesses with long-term growth prospects. We use a covered call strategy to enhance dividend yield and generate steady income for our investors.

Growth Themes

We are invested in long term growth. Harvest ETFs capture industries or secular mega-trends that have long term growth potential by investing in the companies we believe are best suited to participate in that growth.

Quality Businesses

We own quality businesses. We select leading companies with histories of success. They dominate their industries, they innovate, they lead, and their brand equity is measured by a long record of strong financial performance.

Consistent Income

We deliver income. Using a covered call option strategy we enhance the natural dividend yield of a portfolio to create attractive income. Covered calls may also reduce the some of the volatility associated with equity investing.

HDIF in the News

Disclaimer

Harvest Diversified Monthly Income ETF

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 funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made with guidance from a qualified professional. Certain statements included in this communication constitute forward-looking statements, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Investment Fund. The forward-looking statements are not historical facts but reflect the Fund’s, Harvest and the Manager of the Fund’s current expectations regarding future results or events. These forward looking statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although the Fund, Harvest and the Manager of the Fund believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. The Fund, Harvest and the Manager of the Fund undertakes no obligation to update publicly or otherwise revise any forward-looking statement or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

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