Monthly ETF Commentary

May 2026

US markets are coming off the worst monthly losses since 2022 after the month of March. April looked like it could be a grind for investors. The opposite turned out to be true.

Last month, we explored the anatomy of a market bottom. That included sentiment lows, valuation compression, and earnings resilience. In the end, it played out in nearly textbook fashion. The S&P 500 climbed double-digits. Moreover, the leadership that had been consolidating since November in technology continued to carry markets to all-time new highs. At the same time, volatility metrics compressed.

These are the signs of a bull market.

Market Dynamics & Earnings Season

In the United States, the banks kicked off a solid quarter. The financial system is intact, even in the face of considerable bearish sentiment. Strong first quarter earnings emerged from industrials and technology. In addition, over 85% of S&P 500 companies beat quarterly estimates by an average of ten per cent.

These were some of the key catalysts that drove markets to new highs in April. Importantly, earnings estimates for the full-year 2026 have moved higher in this environment. That is a very encouraging signal.

The Markets bottomed on fear and recovered on fundamentals. This is another reminder that timing the market is difficult. Our barbell approach, which we advocated to open the year, advocates defensive income balanced with growth exposure. That outlook continues to be vindicated as we move into the month of May.

Leaders & Laggards | Healthcare

Not every sector in the market enjoyed a recovery in April. Healthcare has been one of the more frustrating sectors in 2026 as well as over the past twelve months. Gloomy April showers came for healthcare in April, as it trailed in the broader market rally.

There is no single event or catalyst to point to. Earnings in Q1 brought some positive surprises from large-cap pharmaceutical names with strong pipelines. The sector awaits a clear and broad positive event to drive up prices. Notwithstanding, the underlying businesses remain strong.

Lower equity prices combined with strong underlying business fundamentals is promising for those looking for value in this sector. Still, patience is required in the current climate as we await positive catalysts for healthcare.

Spring ETF Flows

The Harvest High Income Shares ETFs and our newly branded Income Leaders™ suite continued to see strong inflows in the month of April.

Within the High Income Shares suite, the Harvest Diversified High Income Shares ETF (TSX: HHIS) continued to dominate inflows. This spilled over to the non-levered Harvest High Income Equity Shares ETF (TSX: HHIH). Moreover, individual single stock flows were high. Flows into the Harvest Canadian High Income Shares ETF (TSX: HHIC), which focuses on 10 core Canadian equities, has been very steady.

The Income Leaders™

In April, Harvest rebranded its core equity income ETFs under the unified Income Leaders™ banner. Income Leaders™ have the same tickers, the same strategies, and the same portfolios. The names now better reflect what these funds do.

The Income Leaders™ ETF suite has one focus: Owning strong businesses, in quality portfolios, and delivering high monthly income. That is the philosophy in simple terms.

Notably, the Income Leaders™ have seen inflows into the Harvest Healthcare Leaders Income ETF (TSX: HHL) accelerate over the past month. We see this as a sign that investors may be looking at healthcare’s underperformance in the short term. When we reflect on the barbell strategy, we have seen steady flows into the Harvest Utilities Leaders Income ETF (TSX: HUTL) and our low volatility strategies. Meanwhile, we have seen large buyers of the dip in April in the Harvest Tech Leaders Income ETF (TSX: HTA) and into HHIS.

Sell in May? No Way

“Sell in May and go away.” It may be catchy, but the data behind the adage over the past two decades suggests that the opposite is true.

Right now, direction will depend on geopolitical developments, which will continue to impact oil prices, earnings, and monetary policy. The past should stand as a reminder; the market is resilient. Often, it recovers faster than anyone anticipates, and sometimes when sentiment is at its worst.

The fundamentals that matter more broadly are intact: Earnings are growing, AI capital investment is accelerating, strong businesses generate cash flow, and our Income Leaders™ suite has delivered consistent, high income through the turbulence.

As we move through the spring and into the heat of the summer months, news headlines will continue to drive the frequency and magnitude of shorter market fluctuations. The barbell remains our framework with defensive income and adding selective growth in areas that remain fundamentally strong

Harvest Healthcare Leaders Income ETF

Healthcare lagged broader markets in April. The underperformance reflected negative sentiment and a lack of near-term catalysts to attract new buyers back to the group.

Divergence across sub-sectors remained a defining feature of the portfolio. Medtech and tools/diagnostics names showed increasing signs of capitulation, with several stalwarts slipping post-earnings despite results that validated underlying fundamentals. The market has shown a tendency to punish guidance caution or modest misses. However, we believe healthcare is approaching an inflection point as valuations grow increasingly difficult to ignore.

In contrast, managed care staged a notable recovery during the period. The removal of Medicare Advantage reimbursement uncertainty — following the final 2027 rate increase of 2.48% announced in early April — drove sharp rebounds in names like UnitedHealth Group and Elevance Health.

Large-cap biopharma continued to provide relative stability. Earnings from ABBV (AbbVie), LLY (Eli Lilly), and to a lesser degree MRK (Merck), reinforced the strength of company fundamentals. We are looking for signs for the market to reward these beats. A positive shift in market behaviour would be a constructive signal for the broader group.

We remained active in options strategies, continuing to generate premium income while navigating elevated headline volatility. Write levels were managed carefully to preserve participation in any recovery, balancing income generation with the potential for upside as sentiment begins to stabilize. We removed Zoetis from the portfolio during the month and replaced it with more growth focused Vertex Pharmaceuticals.

Outlook | Healthcare technicals remain oversold across much of the group | We are watching for a broadening of market recognition that fundamentals have held up | HHL’s positioning in large-cap healthcare leaders keeps the portfolio well placed for recovery when sentiment turns.

Harvest US Equity Leaders Income ETF¹

U.S. equities rallied strongly through April. HBF ended the month sharply higher on a total return basis.  Effective April 22, the ETF’s name was changed from Harvest Brand Leaders Plus Income ETF to Harvest U.S. Equity Leaders Income ETF.  Factors that impacted the ETF’s investments during April included:

• • A ceasefire announcement between the U.S. and Iran at the beginning of April sparked a sharp rally in equities
  • The Technology and Communication Services sectors led the rally, as investors turned their attention back to the AI growth story
  • Managed Care stocks rose sharply in April after the Center for Medicare and Medicaid Services increased payment rates by more than expected for 2026. The Fund’s position in UnitedHealth Corp. benefitted from this development.
  • The Fund was rebalanced in April. A position in IT Services provider Accenture PLC was eliminated and was replaced with semiconductor designer Nvidia Corp

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

Effective April 22, the Fund’s name was changed from Harvest Tech Achievers Growth & Income ETF to Harvest Tech Leaders Income ETF.
HTA climbed sharply in April with investors turning their attention back to the AI theme following an announced ceasefire in the U.S. – Iran conflict.

Shares of software provider ServiceNow Inc. fell during the month after the company reported first quarter earnings.  Although results were in line with expectations, the company failed to assuage investor concerns regarding threats from artificial intelligence.

Hardware and semiconductor stocks generally performed well during the month with investor’s renewed focus on the buildout of AI infrastructure.  The ETF benefitted from very strong rallies in shares of hard disk drive maker Seagate Technology Holdings and semiconductor designer Advanced Micro Devices. 

The Fund was rebalanced in April.  Positions in IT Services provider Accenture PLC and software provider Salesforce Inc. were eliminated.  Positions in semiconductor equipment manufacturer Lam Research Corp. and electronics components manufacturer Amphenol Corp., were added.

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

Effective April 22, the ETF’s name was changed from the Harvest Equal Weight Global Utilities Income ETF to the Harvest Utilities Leaders Income ETF.

HUTL finished slightly negative in April, remaining relatively idle after a strong run in recent years. As a defensive asset, HUTL’s relative underperformance against the broad stock market was noticeable in April, given the massive snapback in the broader stock market. Growth and Momentum styles were back in favor. Some of the underlying factors to consider for April included:

• • The sentiment from a ceasefire in Iran drove stocks rapidly higher in April, but areas of “Defensive” and “Value” styles saw a more muted reaction to the volatility
  • Long bond yields were a headwind to more positive returns as they began to spike up again crossing over the 5% mark on the 30-year benchmark, given the fragile ceasefire in Iran and still closed Strait of Hormuz acting to push crude oil prices higher
  • 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.

The ETF will be reconstituted and rebalanced in May.

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 REIT Leaders Income ETF⁴

Effective April 22, the ETF’s name was changed from the Harvest Global REIT Leaders Income ETF to the Harvest REIT Leaders Income ETF.

HGR recovered sharply in the month of April on the renewed market sentiment, but lagged strong gains in the Global benchmark. The renewed sense of optimism about the end of War in Iran, has brought risk-on mentality back into the markets. Despite the continued rise in bond yields back up to the 5% yield level, REITs have recaptured the year’s gain, after giving them up in March. Specific drivers of underlying performance during the month were:

• • Industrial, Residential, Office and Specialty REITs all saw the greatest gains on the month, which mostly reversed the prior month losses
  • The more defensive style REITs which held in a touch better in March, such as Gas/Convenience REITs, Grocery-anchored Plaza REITs, and a mixture of Healthcare REITs did not see the same upside in April and were a drag on overall performance versus the Benchmark

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.

The ETF will be reconstituted and rebalanced in May.

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

Effective April 22, the ETF’s name was changed from the Harvest Energy Leaders Plus Income ETF to the Harvest Energy Leaders Income ETF.

HPF encountered a bit of a roller-coaster drop in April, with a  substantial bounce in the final week of the month but still ended slightly negative on the month. The notable catalysts for the energy sector are focused on:

• • Crude oil dropped sharply a quick ~$30/bbl as the Iran ceasefire came to fruition. However, the negotiations hit an impasse and that caused geopolitical angst to re-enter the mix. That kept the Strait of Hormuz closed, and oil has trended higher to well above the $100/bbl mark once again
  • Previously, the US and IEA countries coordinated a planned release of 400 million barrels from the Strategic Petroleum Reserves to help alleviate some of the short-term supply shortages. However, the longer the Strait of Hormuz remains closed, the effectiveness of the short-term supply buffer from the Strategic Petroleum Reserve (SPR) dwindles and adds to upward price pressure
  • Given the rollercoaster ride in crude oil, the gains in the sub-sectors were skewed to more positive gains in the “defensive” energy pipelines, while the Exploration & Production (E&P) and Integrated sub-industries saw more broad declines across the names

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

The ETF was reconstituted in April, with one name change having been made. Apache Corp (Exploration & Production) was removed and replaced with HF Sinclair (Refining & Marketing), and shifted the exposure to a name with broader market-like returns while removing a name with greater Beta exposure to crude oil prices.

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 rose in April amidst a broader rally in U.S. equity markets. First quarter earnings reports for the industry, were above expectations.  Recent concerns about exposure to private credit markets have faded into the background, at least temporarily, though the group has remained somewhat sensitive to fluctuations in interest rates.

Participation in the rally has been broad across the industry with both mega-cap diversified banks and smaller regional banks rising.

Positions in Citigroup, Morgan Stanley and Truist Financial Corp. were among the best performers during the month.  Shares of Wells Fargo & Co. lagged the sector rally after reporting first quarter net interest margin, a measure of profitability for banks, that was below expectations.

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.   The Fund will be rebalanced in May.

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 Dividend Leaders Income ETF⁶

Effective April 22, the ETF’s name was changed from the Harvest Canadian Equity Income Leaders ETF to the Harvest Canadian Dividend Leaders Income ETF.
HLIF added to gains in April, even though this month it lagged the Benchmark Canadian Index. Some of the main areas to focus on this month include:

• • The Financials category was the main driver of performance during the period with many names showing double-digit gains
  • The bigger weight in HLIF to Telecom stocks versus the Index was a drag with those stocks falling during the month
  • Brookfield Renewables took a steep hit after announcing an acquisition of Boralex, and that also hurt relative performance for HLIF on the month versus the 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 initially rallied as investors took on more risk, rising over 9% by mid-month. However, as the fragility of the Iran ceasefire and stagnation in negotiations rallied oil prices again, TRVI declined over 8%. The ETF ended the month on the positive side, but lagging the rally in the broader stock market. Some of the more specific movements in the month:

• • The areas hardest hit in the second half of April were the Cruise lines and Airlines, which both seem to be more tightly correlated to the negative impacts of crude oil prices that moved above $100/bbl again
  • The rest of the sub-sectors seemed to fare a bit better – but the outlook for the consumer is cautious with the geopolitical concerns and heightened sensitivity to any renewed inflation impacts
  • While the consumer has been more resilient than expected, economic data has been mixed recently, and inflationary concerns remain at the top of the list 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 rallied in April following a ceasefire in the Middle East conflict between the U.S. and Iran.  Throughout the month investors refocused their attention on a burgeoning economic recovery while strong earnings results further propelled the rally.  Currency had a modestly negative impact on the Fund’s performance after a strong rally in the Canadian Dollar relative to the U.S. Dollar. 

Shares of Fastenal Co. and Lockheed Martin Corp. fell during the month after disappointing earnings reports from both companies.  Meanwhile, shares of companies in the Industrials sector that are exposed to AI infrastructure investment, such as Eaton Corp., GE Vernova Inc., and Caterpillar Inc. rallied strongly after investors turned their attention back to artificial intelligence spending.  Gains in the latter two companies were further fueled by positive quarterly updates during the month.

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 solid positive return in April, in line with the TSX, although behind an even stronger S&P 500. Overall equities surged over the month as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical stocks, such as Banks and Industrials in Canada, while in the US the rally was led by Technology, with the Nasdaq-100 surging 13% in the month. The ETF benefitted from a well-diversified sector mix, with National Bank, Sun Life, and Canadian Natural Resources as top contributors. Franco Nevada detracted from returns, as gold equity sentiment decreased during the month. 

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

Overall equities surged over the month, benefiting HPYB, as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical stocks, with Financials the best sector in Canada over the month.

All banks were positive in the month, with TD and CIBC performing the best. Overall, the ETF increasingly took a more defensive stance as the month evolved. Covered calls were exercised as banks rallied, and increasingly the ETF is focused more on selling downside puts, to both generate tax-efficient income, as well as potentially buy bank equities at lower prices should bank prices revert. This strategy is enabling investors to generate attractive income, while taking a more risk-mitigated approach to bank equity in the short term, which may prove beneficial if volatility elevates.

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 surged over the month, benefitting HPYE, as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical and growth stocks which HPYE broadly participated in.  Overall, the equity rally over the month led to the selling of some positions over the month, with proceeds deployed to selling downside puts, to deliver tax-efficient income, as well as the ability to re-enter equities at more attractive prices.

Top contributors on the month included Caterpillar (improving sentiment on AI/data centre build out), Broadcom (on semi-conductor strength), and Goldman Sachs. General Electric, McDonalds detracted over the period. 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.

Outlook | HPYE continued offers exposure to a 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

HPYT and HPYM sold off in April as long bond yields tracked higher back up to their 5% ceiling. This occurred on the back of rising crude oil prices and the growing expectations for inflation to pick up, which flows into nominal bond yields. Short-term bond yields initially moved lower on the Iran ceasefire but then moved back up on stalled peace negotiations and the building chance for a rate hike by year end. The higher duration bonds in HPYT were hurt more than the shorter duration bonds in HPYM, causing HPYT to underperform HPYM in April again. The ETFs movements would have keyed in on:

• • The expectations for the Federal Reserve rate cuts have all but disappeared for 2026 with a roughly 25% chance of a rate hike by end of 2026 — the Iran War and higher crude oil prices have impacted on higher inflation expectations in bonds
  • Yields  remain elevated given the still unexpected risk that lingers around what Fed independence looks like under an incoming Kevin Warsh chairmanship, and now as Powell suggests he will stay on as a member.  But, the new inflationary worries grow as the Iran war drags on.

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 solid positive returns in April, as equities surged over the month as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical stocks, such as Banks and Industrials in Canada, while in the US the rally was led by Technology, with the Nasdaq-100 surging 13% in the month.  Return contribution was led by HTA (Harvest Tech Leaders Income ETF), HBF (Harvest US Equity Leaders ETF) and HHIH (Harvest High Income Equity Shares ETF). The only detracting ETF held, which was only a mild detraction, was HHL (Harvest Healthcare Leaders Income ETF).

The ETFs made reductions to HUBL (Harvest US Banks Income Leaders ETF) and TRVI (Harvest Travel & Leisure Income ETF) over the month, in favour of HHIH.

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 positive on the month, aided by a strong equity rally, but offset by muted fixed income returns. The main contributors to the ETFs’ returns were HTA (Harvest Tech Leaders Income ETF), HBF (Harvest US Equity Leaders ETF) and HHIH (Harvest High Income Equity Shares ETF). The main detractors were HPYM (Harvest Premium Yield 7-10 Year Treasury ETF) and HPYT (Harvest Premium Yield Treasury ETF), as well as HHL (Harvest Healthcare Leaders Income ETF ).

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

Harvest Global Gold Giants Index ETF

April saw a brief bounce in gold, as panic subsided in the markets upon the unveiling of a ceasefire with Iran. That slowly gave way to lower prices to end of the month triggered by rising concerns/yields on the fragility of the ceasefire and uncertainty of the unfolding negotiations.

Gold had been attracting flows as something that can hold value in an environment of trust erosion and wealth protection. In broader context, gold retains its appeal as a safe-haven asset when the unexpected hits and amidst sticky inflation and rising deficits.

However, when concern gives way to panic, gold has historically sold off with risk assets, which occurred this time around. Cash liquidity takes precedence. Higher bond yields can be a negative force for gold. But, when central bank easing actions occur, gold is typically one of the first assets to react positively.

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 reconstituted and rebalanced in May.

Outlook | We continue to await the transition to the new US Federal Reserve Chair, any policy changes and renewed issues around Powell not quietly leaving | 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 initially rallied as investors took on more risk, rising over 9% by mid-month. However, it then declined over 8% as the fragility of the US, Israel and Iran ceasefire and stagnation in negotiations caused oil prices to rise again. Overall, the ETF ended the month just on the positive side but lagged the broader stock market. Some of the more specific movements during the month:

• • The areas hardest hit in the second half of April were the Cruise lines and Airlines, which both seem to be more tightly correlated to the negative impacts of crude oil prices that moved above $100/bbl again.
  • The rest of the sub-sectors seemed to fare a bit better – but the outlook for the consumer is cautious with ingeopolitical concerns and heightened sensitivity to renewed inflation impacts.
  • While the consumer has been more resilient than expected, economic data has been mixed recently, and inflationary concerns remain at the top of the list 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

The higher growth clean energy names in HCLN have tended to trade a little flat in 2026 after a big run in 2025, with April seeing just marginal gains for the ETF. Some of the drivers in the ETF:

• • Challenging market conditions remain with a cloud of uncertainty always lingering around US tariffs, but there has also been some renewed interested in Renewables given the skyrocketing price of oil due to the Iran War
  • The power generation names and the equipment & services side were both equally balanced on the positive side
  • But under the hood there were a few bigger movers — Brookfield Renewables dropped after announcing an acquisition of Boralex. Plug Power was up very strong for a second month, riding a return of sentiment to hydrogen names after strong earnings from other names in the space. Orsted has bounced back from a rough 2025 after a halt of the Trump administration “stop-work orders” for now.
  • 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 April, in line with the TSX. Equities surged over the month as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical stocks, such as Banks and Industrials in Canada. HVOL benefitted from a well-diversified sector mix, with National Bank, Sun Life, and Canadian Natural Resources as top contributors. Franco Nevada detracted from returns, as gold equity sentiment decreased during the month.  

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 experienced gains in April, ultimately ending the month up ~17% m/m on a total return basis. This change mirrored broader market movements with the S&P 500 rising ~10% over the same period. While the market initially faced headwinds from the closure of the Strait of Hormuz and the ensuing increase in the price of oil above USD 100/barrel, sentiment shifted toward optimism regarding a potential ceasefire resolution.

Key Performance Drivers

• • Intel Corp (INTC US) and Circle (CRCL US) emerged as the primary catalysts for HBLK in April. Intel delivered a decisive Q1 earnings beat, headlined by 22% growth in its Data Center and AI segment. This performance reinforces the critical nexus between high-performance hardware and the evolving demands of decentralized networks

Simultaneously, Circle’s release of its “Internet Financial System” roadmap earlier this year underscored the massive scale of USDC on-chain settlement. With annualized volumes surpassing market expectations, investor optimism was further bolstered by the April launch of CPN Managed Payments, a milestone in institutional stablecoin adoption

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

HBTE experienced gains in April, ultimately ending the month up ~23% m/m on a total return basis. This change mirrored broader market movements with the S&P 500 rising ~10% over the same period. While the market initially faced headwinds from the closure of the Strait of Hormuz and the ensuing increase in the price of oil above USD 100/barrel, sentiment shifted toward optimism regarding a potential ceasefire resolution.

Key Performance Drivers:

• • BLSH US, a crypto exchange operating company, increased ~5.5% over the period supported by elevated Bitcoin-driven trading volumes, improved market volatility, and growing institutional engagement in digital asset markets.
  • MSTR US, a leading bitcoin treasury company, rose through April spurred by bullish sentiment in broader markets that carried through to bitcoin

 Outlook |Short-term technicals turned positive in April 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 a portfolio of 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 iShares Bitcoin Trust ETF (IBIT US). The fund experienced strong gains in April and ended the month up ~8% m/m on a total return basis. Performance for HBIX was driven by the combined effects of 1) IBIT US ending the month up ~13%, reflecting Bitcoin’s strongest monthly gain year-to-date, 2) partially offset by CAD appreciation against the USD, and 3) the covered call strategy that enabled premium capture.

Outlook | The near-term outlook for HBIX remains characterized by elevated volatility, though sentiment improved considerably through April. Bitcoin delivered its strongest monthly gain year to date. Bitcoin continues to face resistance near the $80,000 level, and late-month selling pressure suggests momentum has not yet fully re-established. A more favorable regulatory environment and sustained institutional adoption continue to 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

HHIS surged 12.7% for the month of April, surpassing the S&P 500, and roughly in line with the Nasdaq-100 as Technology stocks recovered well during the month. Overall equities surged over the month as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical and growth stocks, which led to HHIS performing well with its focus on higher-growth and technology focus. Positive contributors for HHIS included AMDY (invests in AMD), AVGY (invests in Broadcom), and GOGY (invests in Alphabeta), with strong performance from semi-conductors due to the favourable macro environment, and improving sentiment related to AI growth. The main detractors for HHIS in the period were CRCY (invests in Circle), PLTE (invests in Palantir).

HHIS made minor adjustments during the month, trimming some winners such as AMDY and AVGY on strength, while deploying proceeds to some lesser weights in the portfolio.

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

Overall equities surged over the month, benefiting HHIC, as geopolitical tensions eased, and a temporary ceasefire was reached between US and Iran. The rally favoured cyclical stocks, such as Banks and Industrials in Canada. HHIC’s commodity exposures were a mixed bag, with Cameco (Uranium) performing well, while Gold and Energy exposures were more muted given the improving geopolitical sentiment.

Positive contributors for HHIC included TD Bank, RBC and Cameco, while Telecoms BCE and Telus, as well as Agnico Eagle Mines underperformed.

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.

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.