Monthly ETF Commentary

March 2026

Domestic and global markets have been roiled by the onset of the war between the United States, Israel, and their bitter Middle East rival Iran. What should investors be on the lookout for in an environment gripped by uncertainty?

If it ain’t broke . . .

Despite intramonth gyrations, the S&P 500 finished down about 0.8% in the month of February 2026. However, beneath the surface, we saw a shift in leadership.

Utilities and healthcare rallied in the month of February. Meanwhile, energy and materials – particularly gold – benefited from the tense geopolitical environment. Sectors that had led the markets for most of the past year; Technology, Communication Services, and Consumer Discretionary – pulled back for the month.

This is not a market breakdown. This is breadth expanding.

Healthy bull markets often see rotations in leadership, rather than relying on a small group of stocks indefinitely. Indeed, many have sounded warnings when it comes to the overreliance on tech giants.

Of course, we cannot be naïve to the geopolitical situation. There are legitimate systemic tail risks as heightened tensions, and a wider war have contributed to volatility in the short term.

What is driving sentiment?

Economic data remains generally supportive in the current climate. On the other hand, earnings season was somewhat mixed.

Circling back to the geopolitical front, we have seen significant risks ongoing over the past eighteen months. The continued conflict between Ukraine and its allies and Russia, the Israel-Hamas conflict, the absconding of Maduro by U.S. forces in Venezuela, the Greenland sovereignty crisis, and of course the tariff and trade spats.

Despite these risks, the market has consistently made new highs.

Following the U.S./Israel-Iran war, the current pullback begs a question: How much additional risk is already priced in?

The Fear & Greed Index rolled over during the month of February. Others, like the bull-bear indicators, have been less extreme. Risks are undoubtedly elevated. At the same time, sentiment resets like this can be healthy for markets.

Ultimately, the key debate – as it has been for the past year – is whether the market will continue to outperform in the face of geopolitical uncertainty. Earnings growth has remained largely intact, while valuation multiples have compressed.

The valuations reset

Previously, we have highlighted some of the more defensive areas while advocating “buying the dip” in growth sectors. We continue to see signs that the massive capital expenditures underway are filtering through to earnings growth expectations. When we put that together, we see that, in this correction, there is compression rather than an earnings collapse. That means we can buy equities cheaper with the same earnings.

Technology earnings have remained strong. Capital spending is elevated, and the AI investment cycle presses on.

To reiterate, markets rarely correct purely on valuations, and nor do they bottom on them. Our investment team continues to believe that this is a climate where barbell portfolios – those with growth exposure anchored with defensive income – can work well together.

Canada wins gold in the market Olympics

Canada faced disappointment in the 2026 Winter Olympics in Milan, Italy. However, Canada has quietly been winning gold when it comes to its stock market. That has been true both for its dividend payouts and total returns. Indeed, Canadian markets have outpaced U.S. markets, especially in this most recent correction.

Canadian companies operate in oligopoly-like market structures. Meanwhile, Canadian equities continue to offer a combination of high income and attractive valuations. Within the Harvest lineup, strategies like the Harvest Canadian High Income Shares ETF (TSX: HHIC) provide exposure to higher-growth Canadian names, while balancing some defensive names, while maintaining a strong income focus.

Recently, we expanded our Canadian lineup with a new strategy – the Harvest Premium Yield Canadian Bank ETF (TSX: HPYB). HPYB – a portfolio of the big six Canadian banks – is designed to generate income twice every month while helping manage downside volatility.

The Corrections(s)

Markets have not broken. On the contrary, they are broadening. Geopolitical risks are elevated, increasing the systemic shock.

Our barbell view remains intact. Monetizing volatility through our options strategies is still a key component of total return. Adding some growth exposure, with income and defensive strategies, continues to be a prudent framework for navigating the markets in 2026.

Harvest Healthcare Leaders Income ETF

Healthcare continued its recovery through February and was one of the primary beneficiaries of investors moving money into high-quality defensive growth stocks away from mega-cap tech names.

The divergence within healthcare over the course of the past month continued to be wide. This can be seen in the generally lower correlations across equities in the sector.  Large bio/ pharmaceuticals holdings such as Amgen, Novartis, Bristol‑Myers Squibb and Merck were among the strongest contributors during the month, a sign of continued demand for large‑cap pharmaceutical companies with strong pipelines and cash flow generation.

Medtech performance was mixed. Cardio stalwart Boston Scientific experienced a negative surprise, while Stryker performed very well following strong earnings. The portfolio again benefitted from its diverse holdings. During the month, we navigated a relatively volatile earnings season and remained active across the option strategy while utilizing the movements through key earnings and trial events to monetize some of the volatility.

Outlook | Despite short-term volatility and policy-driven pressure on the sector in the short term, the long-term fundamentals remain solid, driven by: Aging populations, developing nations, and technological innovation.

Harvest Brand Leaders Plus Income ETF

HBF’s performance for the month was slightly down.  Factors that impacted the ETF’s investments during February included:

• • Continued rotation across sectors driven by ongoing concerns about sustainability and return on investment in Artificial Intelligence spending coupled with broader economic optimism

• • The Technology sector continued to struggle, with weakness in software and IT services stocks as investors contemplated the potential for industry disruption from Artificial Intelligence.  Shares of IT Services provider Accenture PLC declined, driven by concerns about business model disruption from AI.
  • Bank and Asset Managers fell during the month as a myriad of concerns ranging from AI disruption potential to private credit market exposure risks surfaced.  Positions in Morgan Stanley and Wells Fargo had a negative impact on fund performance
  • Consumer Staples stocks benefitted from the rotation out of higher growth areas of the market, with positions in The Procter & Gamble Co., The Coca-Cola Co. and Walmart all performing well.  Shares of Caterpillar Inc. and Verizon Communications Inc. continued to rally strongly during the month.
  • The ETF maintained its covered call strategy, as it continues its focus on balancing income generation with participation in equity upside. 

Outlook | Ongoing macroeconomic and equity market valuation concerns have kept markets volatile | Equal weight and specific value-, quality- & yield-based financial metrics can help in current environment with ongoing rotations.

Harvest Tech Achievers Growth & Income ETF

HTA fell in February, reflecting the negative impact of concerns about Artificial Intelligence disruption in the software industry. It was also impacted by worries about the sustainability and return on investment of massive capital expenditure outlooks, which weighed on hardware equities.

Software and IT Services stocks were especially weak during the month with new headlines regarding so-called “vibe-coding” solutions fueling concerns of competition and business model impacts.  Hardware stocks also came under some pressure during the month as investors began to voice concerns about AI-infrastructure capital expenditure levels and sustainability with forecasts for significant increases from the major hyper-scalers met with selling.  A strong earnings report from Nvidia during the month failed to immediately quell these concerns.

Shares of tax and accounting software provider Intuit Inc and cyber-security provider Palo Alto Networks Inc. were among the weakest software holdings, while Nvidia also fell significantly.  These declines were partially offset by strong returns from positions in Motorola Solutions Inc. and Applied Materials Inc., both of which reported strong earnings during the month.

Outlook | AI-driven tech demand continues | Equal weight can help to avoid over concentration I HTA is positioned in large-cap tech leaders and writes call options to support steady income.

Harvest Equal Weight Global Utilities Income ETF

HUTL was up for the month of February posting two consecutive months of growth, although underperforming the Index just slightly. The main factors driving returns in February included:

• • Remarkably, strong returns were generally witnessed across all geographies and all sub-sectors of utilities, telecom and energy pipelines – the “Defensive” and “Value” trade has certainly gained ground in 2026
  • Long bond yields fell about 25 bps during the month, once again moving away from the upper end of its multi-year range — providing a tailwind to utilities
  • The AI boom remains, which highlights growing electricity demand, offering a medium-term tailwind for a sector that tends to be low growth – this has applied to energy pipelines as well, especially those with natural gas exposure for US data center demand needs

HUTL invests in the 30 top utility, telecom, and pipeline companies and offers a balance of defensive income generation while capturing potential upside. It uses a covered call overlay to boost monthly cash flows.

We reconstituted and rebalanced in February, with replacements of two names. Telefonica and Tele2B AB were replaced by Deutsche Telekom and Comcast because the yields fell out of the top 10^th percentile.

Outlook | HUTL is well-positioned in uncertain markets and for AI energy demand tailwinds I Can provide steady cash flow amidst broader macro uncertainty I HUTL remains a leading utility ETF in Canada.

Harvest Global REIT Leaders Income ETF

For February, HGR recorded positive performance but lagged the broader Global REITs subsector.  In general, the real estate sector benefited from lower long-term bond yields (trading below 5%) and the market’s appetite for defensive and value sectors. The primary drivers of relative performance during the month:

• • Strong performance of Japanese and Hong Kong names for the Index, which generally fall into multi-asset conglomerates and developers, are areas not generally investable for HGR and were the main source of underperformance
  • In the Residential sub-sector, our lack of exposure in the German residential names was a bit of drag on relative performance to the benchmark, given their February rally after years of underperformance. Additionally, our bigger weight in student-housing REIT, Unite Group, was dragged by weaker earnings again.
  • In the Specialty sub-sector, Equinix had a strong quarter, besting the performance of our Data Center names – but overall Specialty REITs were one of the strongest areas of total performance for REITs during the month
  • Offsetting some of these areas for relative benchmark performance was the ETF’s beefier exposure to Retail REITs, which performed well, and to Merlin Properties, also very strong performance on the month tied into data centers.

HGR remains broadly diversified across global REIT subsectors, offering exposures to a range of growth-oriented assets, like industrial and data centers, as well as value assets like office and healthcare REITs. This approach helps with the management of macro uncertainty while targeting consistent income from global real estate leaders.

HGR reconstituted in February, with one US sunbelt apartment REIT being dropped, Camden Properties. Lamar Advertising REIT was added. The company is focused on billboards in the US, which have interesting tailwinds in 2026 related to localized advertising demand around US midterm elections and the World Cup.

Outlook | Global REITs have faced headwinds from higher yield concerns and macro uncertainty | HGR’s diversified tenant and lease exposure offers resilience I HGR is positioned to benefit from exposure to growth themes like data centers, communications & online shopping trends with industrial warehouses globally.

Harvest Energy Leaders Plus Income ETF

HPF and broader Energy stocks recorded the second consecutive month of strong gains, a trend that was already evident before the war started in Iran. Crude oil prices weren’t necessarily a big driver of stocks (until war-related gains in March added to performance). Nonetheless, energy and resource equities have seemed to capture the attention of market participants in recent months.  The notable catalysts for the energy sector seemed to trade around:

• • Crude oil maintained an elevated price of $65+/bbl in WTI and $72+/bbl in Brent, as the US began positioning military resources near Iran while engaging in preliminary negotiations and harsh rhetoric (which gave way to war in March)
  • Increased geopolitical tensions and worries about supply disruption are top of mind given the escalating steps
  • Given the rise in crude oil prices and return of energy sentiment, the gains in the sub-sectors were quite evenly distributed

HPF continues to balance exposure to large-cap energy names with a covered call strategy to generate income.

Outlook | Oil markets face macro and supply-side instability | HPF retains quality energy names aligned with long-term capital discipline and yield strength.

Harvest US Bank Leaders Income ETF

HUBL fell in February alongside broad weakness in U.S. bank stocks. The US banking sector faced several challenges during the month, including threats to the payments industry from AI; private credit market exposure concerns; and questions about the US Federal Reserve’s path forward on interest rates.  While the weakness was broad-based, headlines about Wells Fargo & Co exposure to the failure of non-bank lender Market Financial Solutions Ltd. triggered a larger sell-off in the stock.  Morgan Stanley and Goldman Sachs Group Inc. also fell as investors contemplated risks of AI to the asset management industry.  Although being down for the month, shares of JPMorgan Chase & Co. outperformed the industry given its perceived status as a high-quality lender. 

HUBL maintains a covered call strategy for income. It remains positioned to benefit from renewed investor confidence in the banking sector as risks around tariffs and policy uncertainty eased.   HUBL was rebalanced in February with no changes to portfolio’s constituents.

Outlook | The US Federal Reserve Bank’s rate expectations and loan growth outlooks will shape returns | Covered calls can help manage risk in a volatile macro banking environment.

Harvest Canadian Equity Income Leaders ETF

HLIF recorded another month of strong gains in February. HLIF continued to benefit from the Canadian stock market’s outperformance and its unique sector composition, relative to global markets, most notably since October of 2025.  Some of the main areas of strength include:

• • Large weights in Banks, Energy, Utilities and Gold Mining stocks, which is a feature of Canadian Indices as well, has proved to be a net positive across the board for HLIF in recent months
  • Some of the biggest gainers on the month fall into these buckets – Lundin Gold (~26% gain), Canadian Natural Resources National Bank, Cenovus, Keyera, Enbridge, TC Energy and CIBC, were all at the top of the leaderboard.
  • Additionally, Magna saw a big jump higher on the month on a positive earnings report and an expected return to stock buybacks

The ETF focuses on Canada’s top dividend payers, refreshed quarterly. The portfolio’s covered call overlay can help to support stable monthly income in a mixed economic environment.

The ETF will be rebalanced and reconstituted in March.

Outlook | Equal weight and dominant oligopolistic-like companies in the Canadian market | The portfolio remains focused on size & yield in domestic market I HLIF is positioned defensively and favours stable cash flow names.

Harvest Travel & Leisure Income ETF

TRVI was up slightly in February trading very range-bound, like broader stock markets, over the past couple months. Some of the more specific drivers during the month were:

• • Casinos & Gaming and Hotels, Resorts and Lodging led the upside on positive earnings reports – with Caesars Entertainment and MGM Resorts, as well as Wyndham Hotels at the top of the performance list, reversing their weaker performance in January
  • Travel booking sites, Booking Holdings and Expedia Group, continued to show weakness on the month
  • While the consumer has been more resilient than expected, economic data has been mixed recently and the previously hot pace of the economy doesn’t appear nearly as strong, while inflationary concerns remain for consumers

TRVI offers diversified exposure to top travel stocks.

Outlook | While some short-term pressure from consumer is cautionary; the sector is well positioned to benefit from secular trends like aging demographics and resilient travel demand I The ETF is poised to benefit from renewed interest in the consumer discretionary.

Harvest Industrial Leaders Income ETF

Industrial stocks rose strongly in February as investors positioned for an expected acceleration in economic growth on the back of fiscal and monetary stimulus measures enacted in 2025.  Artificial Intelligence (“AI”) theme derivatives within the sector, like Caterpillar Inc., GE Vernova Inc. and Eaton Corp. performed well during the month.   Companies sensitive to the economic cycle, like United Parcel Service and railroads, rallied strongly as did agriculture equipment company Deere & Co. Shares of Uber Technologies Inc. fell modestly as investors weighed the competitive risks of AI. 

HIND maintains its covered call strategy for added income while staying positioned to benefit from renewed industrial sector momentum.  The Fund will be rebalanced during March.

Outlook | HIND remains exposed to economic cyclicals | Stimulative economic policies and elevated geopolitical tensions provide a positive backdrop for industry constituents | Tariff tensions remain a macro headwind.

Harvest Low Volatility Canadian Equity Income ETF

HVOI benefited from the stronger performance of Canadian markets relative to the U.S. US names struggled with growth headwinds and AI disruption, while Canadian equities performed much better. HVOI saw contributions from a range of exposures with a small number of holdings offsetting those gains.

The portfolio made no significant weighting changes in the month, with semi-annual rebalancing scheduled for March.

Outlook | Strategies focus on stable, lower risk portfolio of Canadian equities | Market turbulence expected to persist | Low-volatility profile may be timely for conservative investors.

Harvest Premium Yield Canadian Bank ETF

HPYB enjoyed positive performance in its first full month, as Canadian equities continued to benefit from overall macro trends, and banks generally reported strong results later in the month, which provided further lift to the sector. National Bank led all banks following a superior Q1 report which saw earnings 10% better than expected driven by capital markets’ strength.

All banks contributed positively to performance, with National Bank and CIBC the top contributors. Option premiums were well supported in both puts and calls. As banks rallied during the month, a portion of calls were exercised, selling banks at higher prices. The capital raised was further deployed into writing more puts to generate yield and provide for more attractive re-entry prices.

Outlook | HPYB continued offers exposure to big 6 Canadian banks, with an attractive income screen, exposure to growth, and controlled risk characteristics.

Harvest Premium Yield Enhanced ETF

HPYE performance was relatively flat in its first full month, roughly in line with the S&P 500, as equity markets were challenged by AI disruption in high growth areas, but were buoyed in other area by a general broadening rally in “old world” sectors

Top contributors in the month included Applied Materials, Caterpillar and General Electric, all of which have seen positive momentum on the infrastructure related to AI data centre build outs. Oracle, Amazon, and Palo Alto detracted over the period, due to AI disruption pressures on higher growth companies. Overall, option premiums were well supported in both puts and calls, with attractive volatility levels commanding efficient income generation, and providing for the ability to achieve higher sale prices, and lower buy prices, relative to the price of equities at the outset of trades.

Additionally, the ETF purchased a December downside SPY put position during the month, to provide a partial hedge in the event of negative equity markets.

Outlook | HPYB continued offers exposure to big 6 Canadian banks, with an attractive income screen, exposure to growth, and controlled risk characteristics.

Harvest Premium Yield Treasury ETF

Harvest Premium Yield 7-10 Year Treasury ETF

Long bond yields were able to drop back away from the 5% level, which has been the generalized cap on long end rates for the past few years. Meanwhile, front end yields dropped just a touch, but felt a little flatter, without a tonne of movement in US Fed rate cut expectations. The higher duration bonds in HPYT capitalized on the declining rates better than the shorter duration bonds in HPYM, allowing HPYT to outperform HPYM in February. The ETFs movements would have keyed in on:

• • The expectations are for the US Federal Reserve to cut another 2 times in 2026, with a third cut a small possibility (in March the start of the Iran war has rapidly downgraded those expected cuts).
  • Long end yields overall remain elevated given the expectation that the US economy continues to grow, although at a bit of a slower pace, while risk lingers around what US Fed independence looks like under an incoming Kevin Warsh chairmanship.  Additionally, Iran war concerns and tariff uncertainty keep inflation concerns elevated and add to higher yield demand. – This is keeping the yield steeper

Both ETFs use an active covered call strategy to generate income from exposure to bond market volatility, helping investors offset inflation and deliver higher real yields than traditional fixed income.

Outlook | HPYT/HPYM offer high cash flows from writing covered calls I Macro backdrop has been challenging for longer dated yields I Flexible covered call strategy helps generate cash flows.

Harvest Diversified Monthly Income ETF

Harvest Diversified Equity Income ETF

HDIF and HRIF delivered slightly positive returns in February, just ahead of the S&P 500, which was -0.8% on the month, as equity markets were challenged by AI disruption in high growth areas, but were buoyed in other area by a general broadening rally in “old world” sectors. Gains were led by strong performances from HUTL (Harvest Equal Weight Global Utilities Income ETF), as well as HIND (Harvest Industrial Leaders Income ETF) and HLIF (Harvest Canadian Equity Income Leaders ETF).   HTA (Harvest Technology Achievers Growth & Income ETF) and HHIH (Harvest High Income Equity Shares ETF) detracted from overall return.

The ETFs made no significant changes over the month and continued to focus on maintaining an overall balanced mix.

Outlook | HRIF and HDIF overall remain defensively positioned with multi-sector exposure and high-income strategies to moderate risk | Existing macro and policy uncertainties justify having a diversified approach.

Harvest Balanced Income & Growth ETF

Harvest Balanced Income & Growth Enhanced ETF

HBIG and HBIE were modestly positive on the month, just ahead of the S&P 500 which was slightly down. Top equity contributors included HUTL (Harvest Equal Weight Global Utilities Income ETF), as well as HIND (Harvest Industrial Leaders Income ETF). Fixed income was modestly accretive, as interest rates fell over the month, with HPYM (Harvest Premium Yield 7-10 Year Treasury ETF) the top contributor. On the equity side, HTA (Harvest Technology Achievers Growth & Income ETF) and HHIH (Harvest High Income Equity Shares ETF) detracted from overall return.

The ETFs made no significant changes over the month and continued to focus on maintaining an overall balanced mix.

Outlook | Balanced equity-fixed income structure continues to help buffer downside | Enhanced income and diversification support resilience.

Harvest Global Gold Giants Index ETF

As quickly as the end of January sell-off happened on worries about a potential hawkish Kevin Warsh leadership, gold reversed almost as quickly in February. HGGG saw incredible gains yet again in February.

Gold had been attracting flows as something that can hold value in an environment of trust erosion and wealth protection. And geopolitical concerns continue to escalate with Iran as the US positions military assets in the region (and eventually attacked in March). Gold retains its appeal as a safe-haven asset when the unexpected hits, which is arguably heightened these days, but also amidst sticky inflation and rising deficits.

HGGG invests equally across the world’s 20 largest gold producers, providing leverage to gold price moves and long-term diversification benefits, especially during volatile market cycles.

The ETF was rebalanced and reconstituted in February with two name changes. Artemis Gold and Perseus Mining were removed from the Index and replaced by New Gold Inc. and DPM Metals.

Outlook | Concerns around US Fed Independence remain despite the nomination of a potentially steadier US Fed Chair in Kevin Warsh | Geopolitical noise, war in Iran and sticky inflation keep gold’s safe haven appeal intact | Gold producers offer upside leverage and margin strength.

Harvest Travel & Leisure Index ETF

TRVL was up slightly in February trading very range-bound, like broader stock markets, over the past couple months. Some of the more specific drivers during the month were:

• • Casinos & Gaming and Hotels, Resorts and Lodging led the upside on positive earnings reports – with Caesars Entertainment and MGM Resorts, as well as Wyndham Hotels at the top of the performance list, reversing their weaker performance in January
  • Travel booking sites, Booking Holdings and Expedia Group, continued to show weakness on the month
  • While the consumer has been more resilient than expected, economic data has been mixed recently and the previously hot pace of the economy doesn’t appear nearly as strong, while inflationary concerns remain for consumers

TRVL offers diversified exposure to top travel stocks.

Outlook | While some short-term pressure from consumer is cautionary; the sector is well positioned to benefit from secular trends like aging demographics and resilient travel demand I The ETF is poised to benefit from renewed interest in the consumer discretionary.

Harvest Clean Energy ETF

HCLN had a negative month in February, however, much of that selloff was concentrated in the final few days. Some of the drivers in the Fund:

• • Solar equipment & services stocks were hit by negative earnings reports and outlook changes from some of the top names in the space
  • Challenging market conditions remain, with the changing narrative around tariffs once again, after the Supreme Court has forced the Trump administration to change tact somewhat
  • The power generation names held in a bit better than the equipment & services side of the ETF
  • Long-term clean energy demand appears to be underpinned by global climate goals that still require accelerated investment.

HCLN holds the 40 largest dedicated clean energy and equipment firms, equally weighted and diversified across North America, Europe, and Asia.

Outlook | Massive global clean energy investment needs remain | Long-term drivers are intact | Near-term risks and loss of incentives in the US persist under current administration.

Harvest Low Volatility Canadian Equity ETF

HVOL posted a solid positive return in February, in line with a strong TSX, and well ahead of the S&P 500. Overall while US names struggled with growth headwinds and AI disruption, Canadian equities performed much better.  The ETF’s exposure to Materials (Gold) and Financials (Banks) were both strong drivers of performance. Agnico Eagle, National Bank of Canada, and Canadian Pacific were some top contributing names, while CGI and WSP Global detracted.

The portfolio made no significant weighting changes in the month, with semi-annual rebalancing scheduled for March.

Outlook | Strategies focus on stable, lower risk portfolio of Canadian equities | Market turbulence expected to persist | Low-volatility profile may be timely for conservative investors.

Blockchain Technologies ETF

Blockchain technology companies navigated volatility and ended slightly down at the end of February. These changes followed broader market movements catalyzed by the seemingly hawkish US Fed Chair nomination of Kevin Warsh, which caused selloff in risk assets.

Key Events:

• • Circle (CRCL US): Reported stronger than expected Q4 2025 earnings, causing a mid-month surge. Investors were particularly excited about new AI-driven payment automation, which positions Circle as a critical infrastructure layer for autonomous machine-to-machine transactions.
  • Shift4 Payments (FOUR US): Stock was a suitable addition to the fund following the March 2 Bambora acquisition, adding 140,000 merchants. Despite the stocks’ late-February dip, the company’s robust 26.7% revenue growth and new AI-driven commerce tools support its long-term value.

Outlook | Short-term volatility remains high following recent crypto asset liquidations. Long-term fundamentals are tied to institutional adoption, the integration of infrastructure with AI, and the tokenization of financial assets. HBLK holds the 10 largest North American tech leaders and up to 50 emerging blockchain companies.

Harvest Bitcoin Leaders Enhanced Income ETF

Bitcoin leaders navigated volatility and ended down at month-end. These changes followed negative broader market sentiments, as investors rotated away from higher growth areas of the market, including bitcoin, over the month.

The Fund benefitted from its exposure to:

• • Block (XYZ US): experienced a 5% gain in February 2026, recovering late in the month after initially tracking lower alongside a soft Bitcoin market. In its February 2026 year-end report, the company detailed a major organizational restructuring including a headcount reduction to approximately 6,000 employees. This redirection aimed at improving gross profit 2026, improved investor confidence in Block’s ability to drive margin expansion and scale operations.

• • TeraWulf (WULF US): Tera Wulf (WULF US) rallied ~20% in February 2026. TeraWulf’s high performance computing operations particularly at its New York and Texas sites served as key catalysts for its rally. TeraWulf continues to be a major player in bitcoin mining; as at year-end 2025, the company maintained a large quantity of operational ASICs at its Lake Mariner site, providing a high-margin cash flow base.

Outlook | Short-term technicals remain defensive following volatility in recent months. Long-term fundamentals are tied to the institutionalization of the ecosystem and the expansion of digital assets into regulated financial markets. HBTE holds 16 leading companies in space, utilizing an option-writing strategy to enhance yield and mitigate volatility.

Harvest Bitcoin Enhanced Income ETF

HBIX provides indirect, levered exposure to Bitcoin through the IBIT US ETF. The fund experienced heightened volatility in February which negatively impacted it. Specifically, HBIX was negatively impacted by the volatile backdrop behind bitcoin pricing, with active covered call strategy helping to offset the impact.

Outlook | The near-term outlook for HBIX remains characterized by high volatility. Bitcoin currently lacks the momentum required to reclaim its October highs, with technical indicators suggesting a period of price consolidation. However, a more favourable regulatory environment and sustained institutional adoption could provide long-term structural tailwinds. The ETF’s covered call strategy is designed to provide resilience through income generation amid these market fluctuations.

Harvest Diversified High Income Shares ETF

In February, U.S. equity markets experienced rotation as investor interest broadened beyond higher-growth segments toward more traditional and value-oriented sectors. This shift brought pressure on prices for higher-growth equities. The continued concerns around elevated AI-related valuations contributed to market volatility, while Bitcoin weakened. Against this backdrop, HHIS moved lower during the period.

The primary detractors included METE (invests in Meta), AMHE (invests in Amazon), and AMDY (invests in AMD). On the other hand, some positive contributors for month included CRCY (invests in Circle) and COSY, (invests in Costco) along with NFLY (invests in Netflix), which rebounded after announcing it would no longer pursue an acquisition of Warner Bros. Discovery.

HHIS increased exposure to MSTE (invests in Strategy) and HODY (invests in Robinhood) on weakness while trimming stronger-performing positions.

Option premiums remained well supported amid increased market volatility, with covered call writing maintained at 30–40% across the suite.

Outlook | HHIS continues to offer diversified, enhanced income exposure to high-growth U.S. stocks, supported by an active options overlay.

Harvest Canadian High Income Shares ETF

HHIC was up for the month of February mimicking the broad S&P/TSX Composite Index. While investors sentiment toward high-growth U.S. technology stocks moderated, Canadian equities—generally more value-oriented and commodity-linked—demonstrated relative resilience and outperformed during the month.

Positive contributors for HHIC included Agnico Eagle Mines, as optimism surrounding the profitability of gold producers continued to strengthen. Canadian Natural Resources and Enbridge also delivered strong performance, benefiting from tailwinds associated with higher energy prices.

Shopify detracted from returns as it was impacted by broader concerns surrounding high-growth companies and potential AI disruption.

Among the corresponding single-stock ETFs, AEME, CNQE, and ENBE were the strongest contributors, while SHPE detracted.

Option premiums remained well supported, and income generation through covered call writing stayed at approximately a 33% write level across the portfolio. There were no significant changes to the HHIC portfolio composition during the month.

Outlook | HHIC continues to offer diversified, enhanced income exposure to a portfolio of notable Canadian equities. The Harvest single-stock ETFs based on these underlying holdings provide more concentrated exposure and are designed to deliver high monthly income.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). The funds are not guaranteed, their values change frequently and past performance may not be repeated. Please read the relevant prospectus before investing. Tax, investment and all other decisions should be made with guidance from a qualified professional.

Certain statements in this commentary 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. Although the FLS contained herein are based upon what the portfolio manager believes 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 due to new information, future events or otherwise.

FundGrade A+^® is used with permission from Fundata Canada Inc., all rights reserved. It reflects risk‑adjusted performance and is based on Fundata’s GPA‑style 12‑month methodology with assigned grades A to E and corresponding scores 4 to 0. Funds with a GPA of 3.5+ receive a FundGrade A+^®. There are 21 ETFs in the Health Care Equity category (CIFSC). For full methodology, visit www.FundGradeAwards.com.