Monthly ETF Commentary

August 2026

Macro snapshot

July market recap

The S&P 500 ended flat in the month of July, although performance varied significantly across sectors.  Among the top performers for July, energy and financials led the market. Healthcare and other defensive areas finished the month in the green. Meanwhile, the technology sector had a rare pullback.

Intraday and single-stock volatility (up and down movements in prices) have both been running well above index-level volatility (overall market movements). For covered call strategies, this is a positive development, as it contributed to increased option premiums across Harvest’s option writing strategies.

Market Drivers: Earnings and Valuations

Earnings season has been a large driver of the market along with some macroeconomic headlines in recent weeks. On the earning side for example, Microsoft’s strong quarter contributed to one of the largest single day market cap moves. Also, names like Amazon and Regeneron in the Healthcare space had big days. The bottom-line is the market is moving on earnings and breadth is expanding.

A big theme in the headlines for 2026 is that the market “looks expensive”. However, our market myth buster and co-Chief Investment Officer, James Learmonth, points out that market moves have been driven by strong earnings growth. Earning growth have outpaced price increases as illustrated in the chart below.

Market Returns Broken Down by EPS & Multiples

Source: Harvest ETFs, July 31, 2026. Bloomberg L.P., represents earnings multiple contraction that is driven by forward earnings growth estimates (4 quarter median) and from multiple contraction.

Forward P/E Multiple – Current vs 10-Year Average

Source: Harvest ETFs, July 2026.

The chart above shows that valuations are cheaper today than they were earlier in the year. In fact, multiples are not being lowered by falling prices, instead they are being driven by accelerating earnings. Amid the AI infrastructure buildout, earnings power is broadening across the market. Notwithstanding, volatility is likely to continue.

What we’re watching

The U.S. midterms elections are around the corner, and headlines are only going to get louder in the weeks and months ahead. Harvest’s investment team has run an impact analysis ahead of this crucial election, by sector, by duration, by president, by House and Senate stripes. The result? There is no reliable playbook around the U.S. midterms, including on volatility itself.

There is one element that does hold up.In most midterm cycles, the market was higher the following year. This is a sign that shorter term movements are likely to continue. Nevertheless, the longer-term bias for the markets is upward.

We have seen rotations (investor selling areas of the market to buy others) play out in real time over the past month; technology down, healthcare up one day, utilities leading the next, and growth pulling back. For more details and recent updates, check out our monthly ETF commentary below. Note the tactical shifts in the Harvest Diversified High Income Shares ETF (TSX: HHIS), and an addition to the Harvest Diversified Monthly Income ETF (TSX: HDIF), as well as some detailed notes on our broader outlook across sectors.

Positioning for the Autumn

The view of the Harvest investment team has not changed: the short-term pullback in growth is an opportunity for the long-term investor. Meanwhile, earnings growth remains strong with leading economic indicators showing signs of reacceleration. Having some defence in the mix still makes sense.

Midterms and headlines will persist. However, under the surface, the U.S. economy is reaccelerating and earnings growth remains strong. That is why we remain positive and remain convinced that adding growth on pullbacks, sticking to the barbell strategy, and monetizing high volatility using covered calls is the strategy as we approach the fall season.

Harvest Healthcare Leaders Income ETF

HHL rose again in July, and healthcare was a notable standout among defensive sectors.  During the month there were several days when the market was down, but healthcare was one of the few positive sectors.  Sentiment among some US macro strategists has started to show signs of improvements with US ETF flows shifting positively the first time since 2023.

Several of the Fund’s holdings had positive earnings induced rallies across biopharma such as Regeneron Pharmaceuticals and Bristol Myers Squibb coupled with earnings relief given in the tools and diagnostics sectors with Thermo Fisher Scientific and Abbott Labs all had double digit gains.  Medtech continues to stabilize with Intuitive Surgical lagging through month end, with HHL being rebalanced at month end taking advantage of the recent declines in several medtechs.

HHL invests in 20 large-cap healthcare leaders, employs an active covered call strategy, and pays a monthly distribution of $0.06 per unit.  There were no name changes during the month.

Outlook | Valuations across much of the broader healthcare sector remain attractive | Healthcare’s momentum flowed into July as capital rotated out of momentum and into defensives | Policy-related uncertainty remains an ongoing consideration for the sector | Longer-term demand drivers remain intact.

Harvest US Equity Leaders Income ETF¹

HBF rose modestly during July amid a mixed tape for U.S. equities.  Factors that impacted the ETF’s investments during July included:

• • Market rotation out of AI leaders led to a steep correction for the technology sector, but outperformance by HBF’s technology positions contributed to positive returns.
  • Shares of Microsoft Corp. and Amazon Inc. rallied sharply post-earnings, while positions in Broadcom Inc., Apple Inc. and Nvidia Corp resisted the broader AI sell-off and posted positive returns during the month
  • Shell PLC rallied strongly along with the broader Energy sector after a reignition of hostilities between the U.S. and Iran drove a surge in oil prices
  • A sharp decline in shares of Caterpillar Inc. driven by a rotation out of AI-leveraged names partially offset positive returns for the Fund

The Fund was rebalanced in July and there were no changes to portfolio constituents.

Outlook | Ongoing macroeconomic and geopolitical 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 Leaders Income ETF²

HTA fell in July as investors rotated out of AI leaders, particularly those in the semiconductor industry.   Effective April 22, the Fund’s name was changed from Harvest Tech Achievers Growth & Income ETF to Harvest Tech Leaders Income ETF.

Hardware stocks fell sharply during the month as investors rotated into lagging areas of the market, such as software and other non-Technology sectors.  Many Semiconductor stocks led to the downside following several months of outperformance since the March lows in the S&P 500.

Shares of Applied Materials Inc. and Lam Research Corp., which make equipment used in the manufacture of semiconductors, along with Micron Technology Inc. fell dramatically in July after leading markets for much of the year. 

Software stocks benefitted from investor rotation out of hardware and shares of Intuit Inc. and ServiceNow Inc. rallied strongly.

The Fund was rebalanced in July, and no changes were made to portfolio constituents.

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 Utilities Leaders Income ETF³

HUTL ended the month back in the positive, with Energy Pipelines adding to a stronger bounce back witnessed in the Telecom exposure of the Fund. The “defensive” nature of the Fund has been trading more rangebound since the early part of the year, with some divergence between generally weaker Telecoms and stronger Energy Pipelines.  Some of the underlying factors that contributed to performance included:

• • Telecoms (US names in particular) bounced back after previously seeing some weakness on the headlines coming from speculation that the newly publicly listed SpaceX might attempt to encroach on the Telecom sector. While certain analysts think it is a possibility they could leverage themselves into an agreement with one of the Big 3 in the US to launch a new direct-to-consumer competitor, there is still great uncertainty whether any will make that deal, and whether SpaceX would have to then attempt a tougher buyout.
  • For Canadian Telecom competition, this is even harder as a new operator would really be needed to Canadian-owned and controlled (80% of Board as Canadian) according to Section 16 of the Telecommunications Act.
  • 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’s portfolio of 30 top utility, telecom, and pipeline companies offers a balance of defensive income generation while capturing potential upside. The portfolio is supported by a covered call overlay to boost monthly cash flows.

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. The Fund will be reconstituted and rebalanced in August.

Harvest REIT Leaders Income ETF⁴

July was a positive month for HGR. Even with long bond yields pushing well above the 5% level, it hasn’t hurt a sector like REITs as much as.  This appears to be due to the more Value-tilted nature of the sector versus the Growth-Style stocks which stumbled in July. More specific drivers of underlying performance during the month included:

• • Some of the more beaten down Real Estate sectors have continued to bounce. The Office and Retail REITs saw gains, as well as Unite Group a Student Housing REIT saw strong gains.
  • Even some of the more secular growth areas and Specialty REITs seemed to perform well in July too, with Data Centers, Towers, and names like Getty Realty (gas/convenience) and Lamar Advertising (billboards) all having a good month.

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

Given the current market dynamics and reduced option premium generation ability for REIT stocks the Fund has cut its distribution rate to 3 cents per month (from 4.58 cents per month previously).

The ETF will be rebalanced and reconstituted in August.

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 Income ETF⁵

HPF shot higher in July, with the US-Iran ceasefire abandoned and a return to bombing in the Middle East, while the Strait of Hormuz was closed once again. This led to crude oil prices moving quickly back above $90/bbl before settling in the month around $85/bbl, which is higher than the sub-$70/bbl when we entered July. The notable catalysts for the energy sector:

• • Given the sharp deterioration in negotiations and moves toward US-Iran re-escalation (although still delicate) the market became extremely worried that oil supply disruption was once again an immediate issue, and that has brought crude oil prices up ~$15/bbl during the month.
  • Given the sharp move upward in crude oil, the sub-sectors with greater exposure to crude oil price really benefitted in performance, with Exploration & Production, Integrated Energy names, and Refining/Marketing names all leading the way higher.

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

The ETF was rebalanced back to equal weight in July, with no changes to the holdings.

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 continued to rise in July with a steepening yield curve and signs of a reaccelerating U.S. economy both seen as supportive for bank profitability. 

Gains across the banks industry were broad-based, with shares of JPMorgan Chase & Co. and Bank of America leading the group higher.  Recent addition Bank of New York Mellon Corp. also performed well during the month.  Partially offsetting these gains was a decline in shares of Citigroup as investors rotated out of momentum leaders across the market.

 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.   

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.  The Fund will be rebalanced during the month of August.

Harvest Canadian Dividend Leaders Income ETF⁶

July was another strong month for HLIF, as Canadian stocks keep pushing further into all-time highs. HLIF continued to be relatively steady along the way, outperforming the TSX during the month. Some of the main areas to focus on this month include:

• • While the biggest weight in Canada, the Banks, slowed their pace a bit in July, the Fund’s overweight in Insurance and Other Financial Services companies really picked up the slack to drive fund performance and relative outperformance against the broad TSX
  • Energy stocks came back as well to really benefit performance in July, given the renewed hostilities in the seemingly ongoing US-Iran war
  • While Utilities exposure seemed to be a bit of a drag on performance, given the rally in bond yields, the Fund’s underweight in mining and resource stocks was a net positive for relative performance against the TSX Index

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.

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 witnessed increased volatility in July, moving lower as hostilities ramped up again in the Middle East, before jumping sharply higher right near month end, as peace negotiations were potentially moved back onto the table.  The result over the month was slightly negative performance.

Airline stocks gave up all June gains, falling lower again on the macro story and ramp higher in crude oil prices due to the renewed hostilities between the US and Iran. 

Meanwhile, the Fund benefitted from continued strong performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio. 

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 fell in July with companies perceived as AI investment beneficiaries leading the move down.  Shares of Caterpillar Inc., GE Vernova Inc. and Vertiv Holdings Co, all fell sharply due to a broader rotation out of AI-momentum leadership.  Conversely some cyclical stocks, like Union Pacific Corp., benefitted from this rotation and saw their stocks appreciate.  Defense-related stocks also rallied during the month as hostilities between the U.S. and Iran reignited.  Shares of Lockheed Martin Corp led this group higher following strong earnings results and announcement of a large weapons contract.

HIND maintains its covered call strategy for added income while staying positioned to benefit from renewed industrial sector momentum

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 posted a positive return in July, outperforming the TSX. Most sectors in the TSX were positive during the month, however a resumption in hostilities between the U.S. and Iran led to a sharp jump in global oil prices, benefitting the Energy sector. 

Bank stocks broadly continued to rise in July, but at a slower pace than in recent months while shares of CGI Inc. and Constellation benefitted from a market rotation out of AI-related hardware stocks and into software and services stocks during the period.  Positive returns across much of the Fund’s constituents were partially offset by declines in Wheaton Precious Metals Corp. and Agnico Eagle Mines Ltd., driven by a continued pullback in the price of gold, while shares of Telus Corp. declined after the company reduced its quarterly dividend. The portfolio made no significant changes during the month.

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

Canadian bank stocks continued to hold onto their phenomenal gains that have been witnessed over the past almost 2 years.

Overall, the ETF continued to take a more defensive stance, focusing on selling downside puts, to both generate tax-efficient income, as well as potentially buy bank equities at lower prices from current levels. This strategy is enabling investors to generate attractive income, while taking a more risk-mitigated approach to bank equity in the short term.

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

Harvest Premium Yield Enhanced ETF

Overall, equities were dragged down by a selloff in the Technology sector and in Industrials. The Fund benefitted from being underweight in Technology but was negatively impacted by its holdings in Industrials.

Top contributors on the month included Microsoft, Exxon (on rising crude oil), Amazon and Meta.  Applied Materials and Caterpillar were the two larger detractors.

Overall, option premiums were supported in both puts and calls, with attractive volatility levels commanding efficient income generation.

Outlook | HPYE continued offers exposure to a diversified core portfolio of 20 US listed equities, with an attractive option income overlay, exposure to growth, and controlled risk.

Harvest Premium Yield Treasury ETF

Harvest Premium Yield 7-10 Year Treasury ETF

It was a difficult month for fixed income, with HPYT and HPYM falling during the month of July – HPYT fell quite a bit more than HPYM given the longer duration bonds and the sensitivity to rising yields.  After a brief bit of flattening in the yield curve over the past few months, the yield curve moved in a bear steepening way in July as yields rose, but the longer yields rose even more.

The resumption of war between the US and Iran translated to rising oil prices, causing investors to reassess their outlook for inflation and that has rallied interest rates, more specifically the long end of yields.  Meanwhile, incoming Federal Reserve chairman Kevin Warsh launched his tenure with a more hawkish than expected commitment to price stability, while future interest rate forecasts from members of the Fed further demonstrated this hawkish tilt.

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.

Given the decline in the NAV of the Fund, current market dynamics, as well as the decline in the bond volatilities which has translated into weaker option premiums, both HPYT and HPYM have had their distribution rates cut this month to bring HPYT distribution rate to 6 cents per month (from 9 cents per month previously) and HPYM distribution rate to 5 cents per month (from 7 cents per month previously).

Outlook | HPYT/HPYM offer higher cash flows than bonds by 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 effectively a flat return in July with equity markets generally characterized by the selling of technology and AI-related themes and the buying of other areas of the market.  Notably, the dividend factor focused Canadian allocation was the top performer while the US diversified strategy (HBF – US Equity Leaders Income ETF) also performed strongly while exposures towards the higher growth Tech focused were laggards.

We consolidated the Canadian exposure during the month switching out of the low volatility focused ETF and redeployed into some of the HLIF (dividend focused). 

In HDIF, we also took the opportunity to add a small allocation towards gold during the month, adding a ~3.5% weight allocated towards HPYG, utilizing puts and calls on gold and gold equities.  It adds some diversification but also adds to the income generation capability of the Fund.

Outlook | Both 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 positive on the month with equity markets generally characterized by the selling of technology and AI-related themes and the buying other areas of the market.  Fixed income markets have continued to be very challenging.  The diversified holdings in HBF and HLIF coupled with the relatively defensive exposure in HHL helped the ETFs during the month but were still slightly negative driven by the tech exposure and longer bond yield moves. 

There were no significant changes to the portfolios during the month.

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

Harvest Global Gold Giants Index ETF

Gold prices hardly budged in July, with HGGG moving slightly lower on a point-to-point basis from June 30 to July 31. Despite the re-escalation of hostilities in the Middle East, the gold market participants weren’t keen on making a call either way, which was in stark contrast to the heavily volatile energy complex. Additionally, the somewhat hawkish Fed positioning has pushed interest rate expectations higher this year, with markets now fully pricing in one hike in 2026 however the change is that a 2^nd hike is no longer fully being priced in by market participants.  

Gold had been attracting flows as something that can hold value in an environment of trust erosion and wealth protection. 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.

However, when concern gives way to panic, gold has historically also tended to sell off with risk assets, as cash liquidity takes precedence. Higher bond yields can be a negative force for gold generally. But when central bank easing actions occur if the economy takes a turn for the worse, gold will generally be one of the first assets to react more positively – especially to actions like overnight rate cuts and stimulus measures.

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 will be rebalanced and reconstituted to align with the Index in August.

Outlook | We continue to evaluate the new Fed regime with Fed Chair Kevin Warsh at the helm | Geopolitical noise and stickier inflation keep gold’s safe haven appeal intact longer-term | Gold producers offer upside leverage and margin strength.

Harvest Travel & Leisure Index ETF

TRVL witnessed increased volatility in July, moving lower as hostilities ramped up again in the Middle East, before jumping sharply higher right near month end, as peace negotiations were potentially moved back onto the table.  The result for the month was slightly negative performance.

Airline stocks gave up all June gains, falling lower again on the macro story and ramp higher in crude oil prices due to the renewed hostilities between the US and Iran. 

Meanwhile, the fund benefitted from continued strong performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio. 

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

Clean Energy stocks continued to sharply sell off in July, not capitalizing on higher crude oil prices and rather hampered more by concerns witnessed on the macroeconomic side and in the Growth Style stock selloff. Some of the drivers in the ETF:

• • The peace talks with the US and Iran fell apart and caused crude oil prices to move sharply higher, but Renewables did not capture the “alternative fuel” trade given the concerns around economic growth impacts.
  • However, long-term clean energy demand appears to be underpinned by global climate goals that would 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.

The ETF was reconstituted in July, with five name changes occurring. Metlen Energy & Metals, Verbio, Array Technologies, Canadian Solar and Daqo New Energy were removed, while Clearway Energy (renewable power gen), Fervo Energy (solar), Solv Energy (solar), SMA Solar Technology (solar) and FuelCell Energy (battery/energy storage) replaced them.

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 positive return in July, outperforming the TSX. Most sectors in the TSX were positive during the month, however, renewed hostilities between the U.S. and Iran led to a sharp jump in global oil prices, benefitting the Energy sector. .  Bank stocks broadly continued to rise in July, but at a slower pace than in recent months while shares of CGI Inc. and Constellation benefitted from a market rotation out of AI-related hardware stocks and into software and services stocks during the period.  Positive returns across much of the Fund’s constituents were partially offset by declines in Wheaton Precious Metals Corp. and Agnico Eagle Mines Ltd., driven by a continued pullback in the price of gold, while shares of Telus Corp. declined after the company reduced it’s quarterly dividend.    

The portfolio made no significant changes during the month.

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

HBLK declined in July as a continuation in the selloff from June in digital assets despite a modest uptick in Bitcoin prices following the June sell off.

Key Performance Drivers
It was the large cap component of the portfolio that held up relatively well during the month, with the blow-out quarter from Microsoft Corp. and a bounce from oversold levels in the consulting firms providing some insulation to the many names on the dedicated side that were down 25%+.  There were no changes to the portfolio during the month.

Outlook | Long-term fundamentals remain tied to institutional adoption of digital assets, the expansion of AI and cloud infrastructure, and the increasing overlap between blockchain networks and next-generation computing platforms. While market volatility is likely to persist, HBLK remains positioned to benefit from investment in companies building the infrastructure that underpins these secular growth themes.

Harvest Bitcoin Leaders Enhanced Income ETF

HBTE declined sharply in July as a continuation in the selloff from June in digital assets despite a modest uptick in Bitcoin prices following the June selloff.  The exposure towards direct bitcoin ETFs was amongst the few positive performers during the month while selected bitcoin miners were under pressure.  We continue to look for signs of capitulation in some of the positions that have been under continued selling pressure from May.  There were no changes to the portfolio during the month.

The fund’s active covered call overlay continued to generate monthly income during the decline.

Outlook | While digital asset equities face near-term technical adjustments and shifting correlation to traditional mega-cap tech momentum, the long-term thematic fundamentals remain anchored to structural trends. Sector growth continues to be driven by the accelerating institutionalization of the Bitcoin ecosystem, broader corporate adoption of digital treasuries, the deeper integration of Bitcoin mining infrastructure into regulated global energy and financial frameworks coupled with expanded use cases for existing infrastructure form the basis of our long-term views.

Harvest Bitcoin Enhanced Income ETF

HBIX provides indirect, levered exposure to Bitcoin through investment in the iShares Bitcoin Trust ETF (IBIT US). The rose modestly in July on the back of an uptick in Bitcoin prices while implied volatility has come down modestly, it does remain elevated compared to many other asset classes and reflects a strong premium generation capability from the options strategy.

Outlook | Near-term outlook remains closely tied to Bitcoin prices | Longer-term investment thesis is supported by growing institutional participation, adoption of spot Bitcoin investment vehicles, and recognition of Bitcoin as a distinct asset class | HBIX’s leverage and covered call strategy remain positioned to amplify Bitcoin’s price moves while generating option premiums.

Harvest Diversified High Income Shares ETF

HHIS fell in July, as rotation amongst sectors resulted in declines in many of the momentum leadership names that have led since the March lows.  Performance was negatively impacted by declines in TSLY (invests in Tesla Inc.), AMDY (invests in Advanced Micro Devices Inc.) and SPXE (invests in Space Exploration Technologies Corp.).  This was partially offset by strong returns from investments in MSHE (invests in Microsoft Corp.), AMHE (invests in Amazon Corp. ) and APLE (invests in Apple Inc.).

There were no major changes to portfolio constituents during the month, but positions in some strong performers, such as AMHE and APLE were trimmed with proceeds allocated to smaller positions in the fund, such as RDDY, CNYE, HODY and SPXE at month end. 

Option premiums were well supported by an increasing volatility profile in markets. The income generation through covered calls writing remained around a 30% to 40% write-level across the suite.

Outlook | HHIS continues to offer diversified, enhanced income exposure to high-growth U.S. stocks. 

Harvest Canadian High Income Shares ETF

HHIC benefitted from a strong rally in the Energy sector as hostilities between the U.S. and Iran reignited, however this was offset by continued weakness in Cameco Corp. and Agnico Eagle Mines Ltd.  The former was impacted by a selling off of AI-leveraged leaders, while the latter continued to be pressured by ongoing declines in gold as investors evaluated the path forward for interest rates under the Federal Reserve’s new chairman, Kevin Warsh.  The Fund’s holding of Telus Corp. also fell sharply during the month after the company cut its quarterly dividend.

Option premiums were well supported. Income generation through covered calls writing remained at around 33% write-level across. There were no significant changes to HHIC 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 the stock names in HHIC offer a more concentrated exposure and are designed to provide high monthly income.

Harvest International High Income Shares ETF

The Fund commenced trading July 23rd on the TSX.  It is invested in 15 international issuers and employs a covered call strategy and modest leverage of approximately 25% to provide monthly cash flow to investors.  The Fund’s initial distribution of $0.16 per unit was declared with a payment date of September 4, 2026.

Outlook | HHII offers diversified, enhanced income exposure to a portfolio of notable international issuers.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest ETFs (the “Fund(s)” or “ETF(s)”) 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.

The Funds that use modest leverage of 25% do so to enhance exposure, directly or indirectly, to the underlying stocks. This places them within the category of liquid alternative ETFs.  The use of leverage increases the return volatility, meaning it will amplify both gains and losses.

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.

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 Fund. The FLS are not historical facts but reflect Harvest’s, the Manager of the Fund, current expectations regarding future results or events. These FLS statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest, the Manager of the Fund, believes 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. Harvest, the Manager of the Fund, undertakes 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.

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.