What are High Income Shares™?
High Income Shares™ are single stock ETFs that offer exposure to top companies. The ETFs are overlaid with an active covered call strategy, seeking to generate high monthly income.
Harvest Diversified High Income Shares ETF
| Price | Distribution |
|---|---|
| $11.16 | $0.2700 |
| Updated Daily | Per Unit |
| Price |
|---|
| $11.16 |
| Updated Daily |
| Distribution |
|---|
| $0.25 |
| Per Unit |
Harvest Canadian High Income Shares ETF
| Price | Distribution |
|---|---|
| $13.75 | $0.2000 |
| Updated Daily | Per Unit |
| Price |
|---|
| $13.75 |
| Updated Daily |
| Distribution |
|---|
| $0.16 |
| Per Unit |
Harvest High Income Equity Shares ETF
| Price | Distribution |
|---|---|
| $11.00 | $0.1850 |
| Updated Daily | Per Unit |
| Price |
|---|
| $11.00 |
| Updated Daily |
| Distribution |
|---|
| $0.185 |
| Per Unit |
Why Harvest High Income Shares™?
Harvest High Income Shares™ consistently deliver high income every month. Our team has over six decades of combined investment management experience. High Income Shares™ combine top stocks with trusted expertise to generate high, tax efficient income.
Own Top Stocks + High Monthly Income
Generates high income every month by employing an active covered call writing strategy on top of carefully selected stocks.
High, Tax Efficient Income Available in USD/CAD
Offers investors currency options with both CAD and USD units available.
Available in Enhanced Series
Harvest also offers Enhanced High Income Shares™, which offer modest leverage (at around 25%) for higher income and growth potential.
Where Can I Go to Invest?
Contact a Financial Advisor
Consult with your financial advisor to explore how Harvest funds may fit your investing objectives.
Buy Online
Invest in Harvest funds online through any leading brokerage platform with access to Canadian stock exchanges.
Ready to Invest?
Buying and selling our ETFs is simple: Investors can trade through their self-directed account, or contact their discount broker or financial advisor.
Below are links to some of the self directed brokerage firms available in Canada.
Use and access of third-party websites is at your own risk. Harvest ETFs is not responsible for financial advice, content, functionality or any other aspect of third-party sites. Harvest ETFs is not affiliated with any of these on-line financial service firms. Harvest ETFs will not be compensated by these firms when you place a trade or open an account. The listing of the on-line financial services firms above is not a recommendation or endorsement. By accessing the above websites, you are leaving the Harvest ETFs website and going to a 3rd party site that is independent of Harvest ETFs. Canadian investors may only purchase or trade Harvest ETFs through registered investment dealers, including but not limited to, the online brokerage firms listed above.
Frequently Asked Questions
What is the difference between HHIS, HHIH, and HHIC?
The Harvest Diversified High Income Shares ETF (TSX: HHIS) is made up of a portfolio of Harvest single stock ETFs that represent top US stocks. The underlying ETFs in HHIS use a covered call strategy, and employ modest leverage of approximately 25% to generate higher monthly cash distributions for its unitholders.
The Harvest High Income Equity Shares ETF (TSX: HHIH) is a portfolio of leading and trending US stocks that are generally similar to the underlying single stocks held in the ETFs within HHIS, on an unlevered basis. It uses an active covered call strategy, seeking to provide high monthly income.
The Harvest Canadian High Income Shares ETF (TSX: HHIC) holds a portfolio of established and trending TSX-listed equities. It is overlayed with an active covered call writing strategy and employs modest leverage of approximately 25%, seeking to generate a high yield every month.
Why are Harvest High Income Shares™ ETFs unique products?
Harvest High Income Shares™ ETFs provide access to widely-held stocks in the form of a Canadian Trust Unit listed on the TSX. Each ETF invests in a top company and is overlayed with Harvest’s flexible covered call writing strategy to generate high monthly income by writing up to 50% on the stock in the portfolio. These products offer a unique blend of high monthly income and exposure to the growth potential of the largest and most widely-held US stocks in an affordable way.
The Harvest Canadian single stock High Income Shares (“Canadian ETFs”) are ETF classes of a mutual fund corporation (“MFC”). The MFC tax structure results in tax being calculated at a consolidated level where capital gains and losses are offset within the corporation. Dividends paid by each Canadian ETF are tax efficient as they are generally classified as eligible dividends or capital gains if available.
What type of investor is best suited to own Harvest High Income Shares™ ETFs?
Harvest High Income Shares™ ETFs are designed for investors in two major groups:
- Investors who want to own positions in an individual top company while being able to collect a high level of income due to covered call writing
- Investors who may already own one of the selected stocks and like the idea of using the covered call strategy to reduce risk while adding income
What are the benefits of owning Harvest High Income Shares™ ETFs versus investing directly in top stocks?
Harvest High Income Shares™ ETFs are Canadian issued and traded securities with units available in both Canadian and US dollar units. Investors in any of the Harvest High Income Shares™ ETFs can participate in a top company’s long-term growth, and benefit from Harvest’s covered call writing strategy that’s used to provide an attractive, tax-efficient monthly income.
Harvest High Income Shares™ ETFs offers a more affordable way to gain sizable exposure to these expensive US stocks. There are also Harvest Enhanced High Income Shares ETFs with modest leverage.
What are the Harvest High Income Shares™ ETFs’ management fees?
The management fee on Harvest High Income Shares™ ETFs and Harvest Enhanced High Income Shares™ ETFs is 0.40%.
How often will I receive income from Harvest High Income Shares™ ETFs?
The distribution frequency is set to monthly. Our portfolio management team will write covered calls on up to 50% of the stock in to generate high monthly cash distributions. We also offer Enhanced High Income Shares™ with modest leverage (Around 25%) for even higher income and return potential.
What type of investor is best suited to own Harvest High Income Shares™?
There are two types of investors suited to this strategy, i) Those who want to own positions in an individual company while being able to collect a high level of income due to the covered call writing and, ii) those who may already own one of the selected stocks and like the idea of using the covered call strategy to reduce risk while adding income.
How will Harvest High Income Shares™ deliver value to Unitholders?
Harvest High Income Shares™ will deliver value to shareholders by overlaying an active covered call writing strategy on the individual stock held, directly or indirectly, by the underlying ETF. Our portfolio management team will write covered calls on up to 50% of the stock in order to generate high monthly cash distributions.
We also offer Enhanced High Income Shares™ with modest leverage (around 25%) for even higher income and return potential.
The Harvest Diversified High Income Shares ETF (HHIS:TSX) is a one-ticket solution to all Enhanced High Income Shares ETFs.
What are the benefits of owning Harvest High Income Shares™ versus investing directly in top stocks?
Harvest High Income Shares™ are Canadian traded securities available in both Canadian or US dollar units. Investors in HHIS can participate in long-term growing businesses through ownership of the select stock, while Harvest’s covered call writing strategy is able to provide an attractive, tax-efficient monthly yield.
What is the Harvest Diversified High Income Shares ETF (HHIS:TSX)?
The Harvest Diversified High Income Shares ETF (HHIS:TSX) is designed to provide Canadian investors access to a portfolio consisting of Harvest High Income Shares ETFs that provides high monthly cash distributions and the opportunity for capital appreciation, on a levered basis. HHIS will invest in a portfolio of ETFs that invest in single equity securities and are engaged in covered call strategies.
Is HHIS tax-efficient, and how does its taxation work in a non-registered account?
HHIS currently holds Harvest single stock ETFs of which many only pay a very small dividend to each ETF held. Each Harvest single stock ETF held in the portfolio pays a monthly distribution to HHIS which in turn reflects the aggregate tax character of these distributions received. As a result, it is anticipated that the foreign income component (US dividend) of the over-all HHIS distribution will be minimal at best and that the bulk of the tax character of HHIS distributions paid will be a combination of capital gains and return of capital.
When do Harvest High Income Shares™ ETFs declare monthly distributions?
The distribution (dividend) declarations occur monthly between the 21st and 24th. Record date and ex-dividend is the last trading date of the month except for September which is the second last trading day. Pay dates are the 6th of each month unless the 6th falls on the weekend, then it would be on the Friday in advance.
Harvest announces monthly distributions on the declaration date via press release. Please see the most recent press releases here.
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest High Income Shares ETFs managed by Harvest Portfolios Group Inc. (the “Funds” or a “Fund”). Please read the relevant prospectus before investing. The Funds’ returns 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.
Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into Class A and Class U units of the Fund. If a Fund earns less than the amounts distributed, the difference is a return of capital.
Certain statements included in this communication constitute forward-looking statements (“FLS”, including, but not limited to, those identified by the expressions "expect", "intend", "will" and similar expressions to the extent they relate to the Funds. The FLS are not historical facts but reflect the Harvest’s and the portfolio manager of the Funds current expectations regarding future results or events. These FLS are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest and the portfolio manager of the Funds believe that the assumptions inherent in the FLS are reasonable, FLS 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 Funds, Harvest and the portfolio manager of the Funds undertake no obligation to update publicly or otherwise revise any FLS or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.
The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.
1 Formerly Harvest MicroStrategy High Income Shares ETF.
2 Formerly Harvest Royal Bank Enhanced High Income Shares ETF.
3 Formerly Harvest TD Bank Enhanced High Income Shares ETF.
4 Formerly Harvest MicroStrategy Enhanced High Income Shares ETF.
** Represents aggregate AUM of all classes denominated in Canadian dollars.
*** Current Yield information cannot be presented until the ETF has reached its first anniversary of listing per investment fund securities regulations.
**** 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 targeted distribution stayed the same going forward.
