Harvest Portfolios Group

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 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.

%

Current Yield (as at October 31, 2022)

HDIF Booklet

Key Facts

As at 2022/11/25

TICKER

HDIF

TSX
CURRENCY

CAD

-
NAV

$8.50

Updated Daily
MKT PRICE

$8.51

Updated Daily
NET AUM*

$229.62M

Updated Daily
MGMT STYLE

Active

With Covered Calls
CURRENT YIELD

9.98%

Updated Daily
DISTRIBUTIONS

$0.0708

Per unit
DISTRIBUTIONS

Monthly

Frequency
HOLDINGS

6

ETFs

Investment Objective

Harvest Diversified Monthly Income ETF offers a portfolio of 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%.

HHL

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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HTA

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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HBF

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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HUBL

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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HUTL

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.

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HLIF

Harvest Canadian Equity Income Leaders ETF

CANADIAN EQUITIES

Core portfolio of Canadian market leaders, companies with dominant market shares that meet strict dividend payment criteria.

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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

Why Invest in HDIF Now

Sources: Bloomberg, Harvest Portfolios Group Inc.; Inflation based on StatsCan year over year CPI as at October 31, 2022; HDIF yield is current yield (annual yield based on current distribution and price)

%

Current Yield (as at October 31, 2022)

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.)

Sub-Sector Allocation

As at October 31, 2022

Holdings

As at October 31, 2022

Harvest Canadian Equity Income Leaders ETF (HLIF)

As at October 31, 2022

NameTickerWeightSectorCountry
Canadian Natural Resources LimitedCNQ CN3.9%EnergyCanada
Suncor Energy Inc.SU CN3.9%EnergyCanada
Agnico Eagle Mines LimitedAEM CN3.7%MaterialsCanada
Sun Life Financial Inc.SLF CN3.5%FinancialsCanada
Bank of MontrealBMO CN3.4%FinancialsCanada
Barrick Gold CorporationABX CN3.4%MaterialsCanada
BCE Inc.BCE CN3.4%Communication ServicesCanada
Enbridge Inc.ENB CN3.4%EnergyCanada
Great-West Lifeco Inc.GWO CN3.4%FinancialsCanada
National Bank of CanadaNA CN3.4%FinancialsCanada
Restaurant Brands International Inc.QSR CN3.4%Consumer DiscretionaryCanada
TELUS CorporationT CN3.4%Communication ServicesCanada
The Toronto-Dominion BankTD CN3.4%FinancialsCanada
Canadian Imperial Bank of CommerceCM CN3.3%FinancialsCanada
Canadian Tire Corporation, LimitedCTC/A CN3.3%Consumer DiscretionaryCanada
IGM Financial Inc.IGM CN3.3%FinancialsCanada
Manulife Financial CorporationMFC CN3.3%FinancialsCanada
Power Corporation of CanadaPOW CN3.3%FinancialsCanada
Rogers Communications Inc.RCI/B CN3.3%Communication ServicesCanada
Royal Bank of CanadaRY CN3.3%FinancialsCanada
Choice Properties Real Estate Investment TrustCHP-U CN3.2%Real EstateCanada
Pembina Pipeline CorporationPPL CN3.2%EnergyCanada
TC Energy CorporationTRP CN3.2%EnergyCanada
The Bank of Nova ScotiaBNS CN3.1%FinancialsCanada
Fortis Inc.FTS CN3.1%UtilitiesCanada
Canadian Utilities LimitedCU CN3.0%UtilitiesCanada
Algonquin Power & Utilities Corp.AQN CN2.9%UtilitiesCanada
AltaGas Ltd.ALA CN2.9%UtilitiesCanada
Emera IncorporatedEMA CN2.8%UtilitiesCanada
Brookfield Renewable CorporationBEPC CN2.7%UtilitiesCanada
Cash and other assets and liabilities1.6%
Market value of options(0.7)%

Harvest Healthcare Leaders Income ETF (HHL)
As at October 31, 2022
NameTickerWeightSectorCountry
AbbVie Inc.ABBV US4.9%BiotechnologyUnited States
AstraZeneca PLCAZN US4.9%PharmaceuticalsUnited States
Boston Scientific CorporationBSX US4.9%Health Care Equipment & SuppliesUnited States
Bristol-Myers Squibb CompanyBMY US4.9%PharmaceuticalsUnited States
Danaher CorporationDHR US4.9%Life Sciences Tools & ServicesUnited States
Elevance Health, Inc.ELV US4.9%Health Care Providers & ServicesUnited States
Eli Lilly and CompanyLLY US4.9%PharmaceuticalsUnited States
Intuitive Surgical, Inc.ISRG US4.9%Health Care Equipment & SuppliesUnited States
Medtronic PLCMDT US4.9%Health Care Equipment & SuppliesUnited States
Merck & Co., Inc.MRK US4.9%PharmaceuticalsUnited States
Novartis AGNVS US4.9%PharmaceuticalsUnited States
Regeneron Pharmaceuticals, Inc.REGN US4.9%BiotechnologyUnited States
Stryker CorporationSYK US4.9%Health Care Equipment & SuppliesUnited States
Thermo Fisher Scientific Inc.TMO US4.9%Life Sciences Tools & ServicesUnited States
UnitedHealth Group IncorporatedUNH US4.9%Health Care Providers & ServicesUnited States
Abbott LaboratoriesABT US4.8%Health Care Equipment & SuppliesUnited States
Amgen Inc.AMGN US4.8%BiotechnologyUnited States
Johnson & JohnsonJNJ US4.8%PharmaceuticalsUnited States
Pfizer Inc.PFE US4.8%PharmaceuticalsUnited States
Zoetis Inc.ZTS US4.8%PharmaceuticalsUnited States
Cash and other assets and liabilities2.7%
Foreign currency forwards0.2%
Market value of options(0.7)%
Harvest Tech Achievers Growth & Income ETF (HTA)
As at October 31, 2022
NameTickerWeightSectorCountry
Broadcom Inc.AVGO US5.1%Semiconductors & Semiconductor EquipmentUnited States
Fortinet, Inc.FTNT US5.1%SoftwareUnited States
Motorola Solutions, Inc.MSI US5.1%Communications EquipmentUnited States
Oracle CorporationORCL US5.1%SoftwareUnited States
Salesforce, Inc.CRM US5.1%SoftwareUnited States
Accenture PLCACN US5.0%IT ServicesUnited States
Alphabet Inc.GOOGL US5.0%Interactive Media & ServicesUnited States
Cisco Systems, Inc.CSCO US5.0%Communications EquipmentUnited States
Intuit Inc.INTU US5.0%SoftwareUnited States
Keysight Technologies, Inc.KEYS US5.0%Electronic Equipment, Instruments & ComponentsUnited States
Microsoft CorporationMSFT US5.0%SoftwareUnited States
NVIDIA CorporationNVDA US5.0%Semiconductors & Semiconductor EquipmentUnited States
QUALCOMM IncorporatedQCOM US5.0%Semiconductors & Semiconductor EquipmentUnited States
Texas Instruments IncorporatedTXN US5.0%Semiconductors & Semiconductor EquipmentUnited States
Visa Inc.V US5.0%IT ServicesUnited States
Adobe Inc.ADBE US4.9%SoftwareUnited States
Advanced Micro Devices, Inc.AMD US4.9%Semiconductors & Semiconductor EquipmentUnited States
Apple Inc.AAPL US4.9%Technology Hardware, Storage & PeripheralsUnited States
Intel CorporationINTC US4.9%Semiconductors & Semiconductor EquipmentUnited States
Meta Platforms, Inc.META US4.8%Interactive Media & ServicesUnited States
Cash and other assets and liabilities1.2%
Foreign currency forwards(0.2)%
Market value of options(0.9)%
Harvest Brand Leaders Plus Income ETF (HBF)
As at October 31, 2022
NameTickerWeightSectorCountry
Caterpillar Inc.CAT US5.4%IndustrialsUnited States
McDonald's CorporationMCD US5.2%Consumer DiscretionaryUnited States
Visa Inc.V US5.2%Information TechnologyUnited States
Intel CorporationINTC US5.1%Information TechnologyUnited States
Shell PLCSHEL US5.1%EnergyUnited States
Bank of America CorporationBAC US5.0%FinancialsUnited States
Johnson & JohnsonJNJ US5.0%Health CareUnited States
JPMorgan Chase & Co.JPM US5.0%FinancialsUnited States
Morgan StanleyMS US5.0%FinancialsUnited States
PepsiCo, Inc.PEP US5.0%Consumer StaplesUnited States
The Procter & Gamble CompanyPG US5.0%Consumer StaplesUnited States
UnitedHealth Group IncorporatedUNH US5.0%Health CareUnited States
Verizon Communications Inc.VZ US5.0%Communication ServicesUnited States
The Walt Disney CompanyDIS US5.0%Communication ServicesUnited States
Accenture PLCACN US4.9%Information TechnologyUnited States
Apple Inc.AAPL US4.9%Information TechnologyUnited States
NIKE, Inc.NKE US4.9%Consumer DiscretionaryUnited States
United Parcel Service, Inc.UPS US4.9%IndustrialsUnited States
Alphabet Inc.GOOGL US4.5%Communication ServicesUnited States
Microsoft CorporationMSFT US4.5%Information TechnologyUnited States
Cash and other assets and liabilities1.7%
Foreign currency forwards(0.3)%
Market value of options(1.0)%
Harvest US Bank Leaders Income ETF (HUBL)
As at October 31, 2022
NameTickerWeightSectorCountry
Bank of America CorporationBAC US7.1%BanksUnited States
Wells Fargo & CompanyWFC US6.7%BanksUnited States
Citizens Financial Group, Inc.CFG US6.6%BanksUnited States
The Goldman Sachs Group, Inc.GS US6.5%Capital MarketsUnited States
KeyCorpKEY US6.5%BanksUnited States
The PNC Financial Services Group, Inc.PNC US6.4%BanksUnited States
Morgan StanleyMS US6.3%Capital MarketsUnited States
Huntington Bancshares IncorporatedHBAN US6.2%BanksUnited States
Citigroup Inc.C US6.1%BanksUnited States
Fifth Third BancorpFITB US6.1%BanksUnited States
JPMorgan Chase & Co.JPM US6.1%BanksUnited States
Regions Financial CorporationRF US6.1%BanksUnited States
U.S. BancorpUSB US6.1%BanksUnited States
Truist Financial CorporationTFC US5.8%BanksUnited States
First Republic BankFRC US5.2%BanksUnited States
M&T Bank CorporationMTB US5.2%BanksUnited States
Foreign currency forwards0.9%
Cash and other assets and liabilities0.9%
Market value of options(0.7)%
Harvest Equal Weight Global Utilities Income ETF (HUTL)
As at October 31, 2022
NameTickerWeightSectorCountry
AT&T Inc.T US3.9%Diversified Telecommunication ServicesUnited States
ENGIE S.A.ENGI FP3.8%Multi-UtilitiesFrance
Deutsche Telekom AGDTE GR3.7%Diversified Telecommunication ServicesGermany
Rogers Communications Inc.RCI/B CN3.6%Wireless Telecommunication ServicesCanada
E.ON SEEOAN GR3.5%Multi-UtilitiesGermany
BCE Inc.BCE CN3.4%Diversified Telecommunication ServicesCanada
Endesa S.A.ELE SM3.4%Electric UtilitiesSpain
ONEOK, Inc.OKE US3.4%Oil, Gas & Consumable FuelsUnited States
Orange S.A.ORA FP3.4%Diversified Telecommunication ServicesFrance
Swisscom AGSCMN SW3.4%Diversified Telecommunication ServicesSwitzerland
TC Energy CorporationTRP CN3.4%Oil, Gas & Consumable FuelsCanada
The Williams Companies, Inc.WMB US3.4%Oil, Gas & Consumable FuelsUnited States
Edison InternationalEIX US3.3%Electric UtilitiesUnited States
Enbridge Inc.ENB CN3.3%Oil, Gas & Consumable FuelsCanada
Kinder Morgan, Inc.KMI US3.3%Oil, Gas & Consumable FuelsUnited States
TELUS CorporationT CN3.3%Diversified Telecommunication ServicesCanada
Duke Energy CorporationDUK US3.2%Electric UtilitiesUnited States
FirstEnergy Corp.FE US3.2%Electric UtilitiesUnited States
Fortis Inc.FTS CN3.2%Electric UtilitiesCanada
Koninklijke KPN NVKPN NA3.2%Diversified Telecommunication ServicesNetherlands
Naturgy Energy Group, S.A.NTGY SM3.2%Gas UtilitiesSpain
The Southern CompanySO US3.2%Electric UtilitiesUnited States
Avangrid, Inc.AGR US3.1%Electric UtilitiesUnited States
Verizon Communications Inc.VZ US3.1%Diversified Telecommunication ServicesUnited States
Vodafone Group PLCVOD LN3.1%Wireless Telecommunication ServicesUnited Kingdom
Emera IncorporatedEMA CN3.0%Electric UtilitiesCanada
SSE PLCSSE LN3.0%Electric UtilitiesUnited Kingdom
Telefonica, S.A.TEF SM3.0%Diversified Telecommunication ServicesSpain
National Grid PLCNG/ LN2.9%Multi-UtilitiesUnited Kingdom
Telia Company ABTELIA SS2.7%Diversified Telecommunication ServicesSweden
Cash and other assets and liabilities2.3%
Foreign currency forwards(0.3)%
Market value of options(0.8)%

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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