Monthly ETF Commentary

September 2026

Macro snapshot

August market recap

The end of August marked five straight months of gains for the Dow Jones Industrial Average. It also marked another solid uptick for the S&P 500, bringing total year-to-date returns through August well into double digits.

Meanwhile, the S&P/TSX Composite Index also continued its streak of strong performances. Canada’s premier index advanced 2.96% in August 2026, finishing the month near all-time highs.

This is a strong bull market. However, there are still many questions lingering as we enter the final four months of 2026.

Signs of a healthy North American market

In the previous monthly commentary, we discussed expanding breadth as the next healthy step for what has been a strong market. The August market managed to deliver on that, delivering strong returns for sectors like Healthcare, Energy, and Materials, alongside the typically strong performance for Technology. Areas that had been lagging, namely defensives, are finally starting to participate in the bull market.

These are signs of a healthy market. Energy has been the standout in the year-to-date period. Indeed, Energy has continued to be the driver of strong performance in both the United States and the broader Canadian market. That is showing up in our portfolios as well.

Oh Canada | HHIC turns one year old

The Harvest Canadian High Income Shares ETF (TSX: HHIC) turned one-year old in August 2026. HHIC has delivered a strong performance alongside the broader Canadian market. Energy exposure in the form of Canadian Natural Resources (CNQ) and Suncor (SU), as well as diversified exposure through names like Shopify and select Canadian banks like Royal Bank and TD Bank, has bolstered HHIC’s total return profile.

It is worth noting that these names are also available through our High Income Shares suite as single stock ETF portfolios.

August earnings for the Canadian banks reinforced that they remain on solid ground. This is despite the challenging macro narrative on trade. Indeed, the trade dynamic is yet to be fully understood and does remain a genuine risk that investors need to bear in mind going forward. Regardless, earnings for the Canadian bank group generally exceeded expectations.

That said, we are entering the seasonality of September. This has historically been one of the weakest months on the calendar. Over the past 25 years, it has seen the largest average uptick in monthly volatility.

For those looking to maintain exposure to Canadian banks, while also managing downside volatility, there is the Harvest Premium Yield Canadian Bank ETF (TSX: HPYB), which holds a portfolio of the big six Canadian banks while executing a covered call option and put strategy.

Seasonality and headlines

The seasonal headlines are real, but our recent valuation report makes an important point. That is, the significant move higher in markets this year has been driven by earnings growth, not by more expensive multiples. Forward earnings estimates have continued to move higher, which means the market is better valued today than it was to start the year. You can read more on this story in our recent Insights piece; Beyond the Headlines: Why AI Still Supports the Bull Market.

This is a fundamentally different story than the bear case, which argues that this market is unusually expensive. We contend that there is still value for investors, especially as the AI growth story continues to evolve.

Shorter-term rotational technicals have also shown improvement. We have seen an uptick in financials. Moreover, as we highlighted in our recent healthcare deep dive, there are genuine signs of improving breadth in the healthcare sector after a prolonged lag.

Conclusion

As we look ahead to the autumn, the U.S. midterm elections are looming. Stay tuned for a piece on patterns in the market during previous presidential and midterm election seasons. The short version; There is no reliable pattern that can be traced around midterm cycles.

Looking back to the markets and the economy, strong earnings growth is now adding to wage inflation concerns. That has put upward pressure on inflation expectations and has also upset bond markets. Indeed, bond yields are continuing to move higher despite political will to have them lower. Add trade tensions as an overhang, and you have political narratives running hot in late 2026.

September is historically the market’s most volatile month. Tariff risk is real, and bond markets are watching inflation closely. We remain positive when looking at the whole picture, and we reiterate the barbell approach. That is, adding growth on pullbacks, keeping defensive income layered in, and monetizing high volatility with covered calls and put options as we head into the fall season.

Harvest Healthcare Leaders Income ETF

HHL rose again in August, and healthcare was a notable standout among defensive sectors albeit not immune to some of the volatility that has ensued through early September.  We did several pieces for the sector over the course of the month, outlining some of the key shorter term catalysts including signs of improving sentiment among some US macro strategists, signs of US ETF flows shifting positively the first time since 2023 and deep dive into earnings growth through 2027.  Check out the Harvest Insights page for the full reports.

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 August 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 August amidst a positive month for U.S. equities in general.  Gains for the market were largely confined to early in the month however, and most of August was characterized by choppy market action.  Questions continued to surround the outlook for inflation and the resulting path for monetary policy from the Federal Reserve.  Economic data and earnings results have largely remained in a positive trend, however elevated geopolitical tensions, trade risks and the U.S. mid-term elections will likely remain an ongoing source of volatility going forward. 

The ETF’s performance benefitted from strong rallies in Oracle, Nvidia and Verizon, partially offset by declines in UnitedHealth Group and Walmart. 

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 rose in August as the technology sector rebounded from declines in the prior month.  Software stocks rallied significantly during the month as strong results from some key companies in the industry helped to dispel the narrative, at least temporarily, of severe disruption from AI solutions. Semiconductors and hardware names continued to experience mixed returns as questions around the sustainability of current high levels of capital expenditure persisted.  Additionally, with the upcoming U.S. mid-term election in November, some investors have also begun to speculate that restrictions on data center construction may become a more prominent issue for politicians. 

The ETF’s performance benefitted from positive returns across the sector with shares of Micron Technology, ServiceNow and Oracle experiencing particularly strong returns.  This was partially offset by declines in positions in Applied Materials, Cisco Systems and Alphabet.    

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

• • North American Telecoms continued to bounce 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 (Verizon, T-Mobile US, and AT&T) 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.

Harvest REIT Leaders Income ETF⁴

August was a negative month for REITs with long-term US bond yields (20+ year duration) holding well above the 5% level.   Concerns regarding renewed bombing in Iran and the potential inflationary impacts as well as concerns surrounding intervention in the US bond market have driven yields higher, which weighs on interest-sensitive REITs. More specifically performance during was driven by  a selloff in Retail and Diversified REITs countered by increase in American Tower, the only positive name in the ETF .

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 was rebalanced in August, with no changes to the names.

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 continued to move higher in August, amidst the US returning to missile strikes in Iran, which left the Strait of Hormuz closed once again. This led crude oil prices to continue to push closer to $90/bbl during the month, before ending the month at almost $86/bbl on WTI. The notable catalysts for the energy sector included:

• • Higher crude oil price, triggered d by cessation of negotiations and the re-escalation of bombing in Iran which re-ignited the market’s concerns that oil supply disruption is an immediate and lasting issue.
  • The attendant strong performance of the energy space aside from the Pipelines, which are tied more into the “defensive” style and more utility-like, most sub-sectors of.

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 slightly in August following several months of strong performance for the U.S. banks industry.  A plan announced by the U.S. Treasury department to buy long term treasury bonds coupled with hawkish commentary from Federal Reserve chair Kevin Warsh drove a modest flattening of the yield curve late in the month largely due to short-term yields rising faster than long-term yields.  Traditional banking activities generally profit from borrowing at short-term rates and lending at long-term rates. 

Declines across the industry were broadly based during the month with regional banks notably underperforming the mega-cap universal banks.  JPMorgan Chase & Co and Wells Fargo bucked the broader industry trend and ended the month slightly higher.  Shares of capital markets focused companies, Bank of New York Mellon, Morgan Stanley and Goldman Sachs also ended the month higher.  However, gains in these areas were more than offset by declines in the ETF’s regional bank holdings, such as M&T Bank, Fifth Third Bancorp and KeyCorp.

HUBL maintains a covered call strategy for income. It remains positioned to benefit from renewed investor confidence in the banking sector due to a more bank-friendly regulatory environment.  The ETF was rebalanced in August, but there were no changes to constituent holdings. 

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

In a rare occurrence, HLIF took a bit of a breather in August, and traded mostly sideways, as those areas outside of the resources space were generally softer while the resources space was stronger. Some of the main areas to focus include:

• • While the biggest weight in Canada, the Banks, broadly showed more weakness through earnings, Scotiabank and TD Bank seemed to navigate their earnings more positively.
  • Energy stocks performed well given the renewed hostilities in the seemingly ongoing US-Iran war, while gold and mining stocks caught a big bid on the weakening US dollar
  • While Utilities exposure continued to be a bit of a drag on performance, the Telecom sector saw a bounce back from earlier concerns about SpaceX potentially taking market share in a direct-to-consumer model for Starlink.

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 September.

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 got hit in August by the resumption of bombing in Iran and a move higher in crude oil prices once again. With the closure of the Strait of Hormuz again, crude oil supply disruption is top of the list of concerns, leading to potentially challenged margins and weaker outlooks for many travel-related stocks.

Cruise lines and other airline stocks sold off aggressively in August, falling lower again on the macro story, geopolitical unrest and the ramp higher in crude oil prices due to the renewed hostilities between the US and Iran. 

Interestingly, the ETF benefited from continued good performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio. 

TRVI offers diversified exposure to top travel stocks. The ETF will be rebalanced and reconstituted to the Index in September.

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

HIND fell slightly in August, with performance mixed across the Industrial sectors of various sub-industries.  The Federal Reserve commentary around potentially increasing interest rate, as well as ongoing military strikes in the Middle East that caused oil prices to rise further put some pressure on the outlook for a burgeoning economic acceleration in the U.S.  Additionally, continued concerns regarding the sustainability of investment in AI infrastructure led to declines in some Industrial stocks leveraged to that theme. 

Shares of Delta Airlines and GE Vernova were among the largest decliners on the back of rising oil prices and AI investment concerns, respectively.   Meanwhile, shares of railroad companies Union Pacific and Canadian Pacific Kansas City continued to trend higher, and shares of Deere and Uber rallied strongly.  HIND maintains its covered call strategy for added income while staying positioned to benefit from renewed industrial sector momentum.  The ETF will be rebalanced during the month of September.

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

The ETF fell modestly during the month as strong returns for gold equities were not enough to offset broader weakness across Canadian equities during the month.  Outside of gold, Shares of Rogers Communications and BCE also rallied during the month.  Stocks in the key Canadian Bank industry were generally weak during the month following earnings reports that largely beat consensus expectations but were ultimately met with a “sell the news” reaction by investors.

The ETF will be reconstituted during the month of September, focusing on companies demonstrating low volatility characteristics in accordance with the ETF’s investment mandate.

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 broadly sold off a touch in August on earnings, excluding Scotiabank and TD Bank, but continue 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, increasing covered call positioning slightly while not being so aggressive on selling downside puts, utilizing both generate tax-efficient income, as well as still retain the potential to 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 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 saw a bounce back in Technology as well as strong performance from Energy in August, while this was somewhat offset by Industrials and Consumer stocks broadly. The ETF, while naturally being less exposed to stock market movements through its calls/puts writing strategy, still benefited from being invested in Technology but did see the same drag from Industrials and Consumer stocks.

Top contributors on the month included Palo Alto Networks, Oracle, NVIDIA and Microsoft.  Applied Materials and GE 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 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 Gold ETF

Gold bullion in August saw a remarkable rally and gold mining stocks capitalized on this in a levered way, given the fact that gold prices flow through their business with an operating margin.

Covered call positioning in the ETF has declined as gold mining stocks have rallied very strongly over the month. With call option strike levels being hit on the upside and structurally selling certain stock positions for profit into this, the strategy has thus been shifting to write more put option contracts on those names with that incoming cash. The idea behind this is that the ETF will get paid by the options premiums to wait to buy these stocks at lower levels from current pricing.

Outlook | HPYG offers exposure to gold bullion and gold mining 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 somewhat flat month for HPYT and HPYM, with HPYT edging out a slight gain in total return performance. Long bond yields (20+ years duration) barely budged despite the geo-political noise and the talk about the US Treasury ramping up a bond buying campaign. The yield curve flattened somewhat with short end yields moving up. However, the shorter duration of mid-term bonds to which HPYM is exposed helped it to avoid a negative hit to performance.

The resumption of war between the US and Iran translated to rising oil prices, causing investors to reassess their outlook for inflation but that hasn’t directly translated to the long end of yields this month.  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.

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 both rose modestly during the month due to strong performance across most of the ETF’s holdings, with particular strength from HHL (Harvest Healthcare Leaders Income ETF), HTA (Harvest Tech Leaders Income ETF), and HHIH (Harvest High Income Equity Shares ETF).  HDIF slightly outperformed HRIF due to its modest 25% leverage as well as strong performance from recently added HPYG (Harvest Premium Yield Gold ETF).  HPYG is not held in HRIF due to restrictions prohibiting exposure to levered products in the ETF’s objectives. 

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 performance driven by a rally in the technology sector and other growth-focused areas as well as continued strength in the health care sector.  Within this context, positions in HHIH (Harvest High Income Equity Shares), HTA (Harvest Tech Leaders Income ETF) and HHL (Harvest Healthcare Leaders Income ETF) were the strongest performers.  This strength was partially offset by declines in TRVI (Harvest Travel & Leisure Income ETF) as renewed conflict in the Middle East and resultant increase in oil prices pressured consumer exposed areas of the market, while a flattening yield curve put modest pressure on U.S. banks that led to a decline in HUBL (Harvest U.S. Bank Leaders Income ETF). 

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 rocketed higher in August, pushing HGGG to very strong gains on the month. Even despite the re-escalation of hostilities in the Middle East, and its potential inflationary expectation impacts increasing, the offsetting factor overwhelmingly was the talk by the Treasury toward increasing bond buybacks (mostly to bring longer term yields lower). This raises fresh concerns about undermining confidence, and the US dollar sold off, which is positive for gold investors.

In recent years, gold had been attracting flows as something that can hold value in an environment of trust erosion and wealth protection, and that heightened again in August. 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 was rebalanced and reconstituted to align with the Index in August, with no changes to the names in the Index

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 got hit in August by the resumption of bombing in Iran and a move higher in crude oil prices once again. With the closure of the Strait of Hormuz again, crude oil supply disruption is top of the list of concerns, leading to weaker outlooks for many travel-related stocks.

Cruiselines and other airline stocks sold off aggressively in August, falling lower again on the macro story, geopolitical unrest and the ramp higher in crude oil prices due to the renewed hostilities between the US and Iran. 

Interestingly, the ETF benefitted from continued good performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio. 

TRVL offers diversified exposure to top travel stocks. The ETF will be rebalanced and reconstituted to the Index in September.

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 the downward trajectory in August, not capitalizing on higher crude oil prices and rather hampered more by concerns witnessed on the macroeconomic side and higher bond yields. Some of the drivers in the ETF during the month:

• • The bombing resumed in Iran and that caused crude oil prices to move higher again, but Renewables did not immediately capture the “alternative fuel” trade given the concerns around geo-political issues and 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 buyout of Boralex, by a consortium led by Brookfield, came to completion in August temporarily dropping the ETF to 39 names. The next largest name from the last reconstitution was REX American Resources, and it will be added in as the replacement.

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

The ETF fell modestly during the month as strong returns for gold equities were not enough to offset broader weakness across Canadian equities during the month.  Outside of gold, Shares of Rogers Communications and BCE also rallied during the month.  Stocks in the key Canadian Bank industry were generally weak during the month following earnings reports that largely beat consensus expectations but were ultimately met with a “sell the news” reaction by investors.

The ETF will be reconstituted during the month of September, focusing on companies demonstrating low volatility characteristics in accordance with the ETF’s investment mandate.

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 rebounded in August, tracking a broad reversal across digital assets after the extended selloff that ran from June through most of July. Bitcoin stabilized in the low- US$60,000s through early and mid-August, then staged a rapid rally in the back half of the month — clearing $69,000, then $75,000, and briefly trading above $81,000 around August 25th before easing to close the month near $78,000. The advance was fueled by renewed spot Bitcoin ETF inflows and improving sentiment around regulatory clarity for digital assets.

August marked a reversal in sub-sector leadership from July: the dedicated digital-asset names — several of which were down 25%+ the prior month — participated most directly in the rally, such as those most exposed to direct Bitcoin price among the sector’s strongest performers as investors rewarded direct BTC exposure.

One dedicated name representing less than 1% of the ETF was removed during the month as it no longer satisfied the liquidity thresholds set out in the Index Methodology. 

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. August’s rally is a reminder that near-term price action can swing quickly on positioning and macro catalysts, but HBLK remains positioned to benefit from investment in companies building the infrastructure underpinning these secular growth themes.

Harvest Bitcoin Leaders Enhanced Income ETF

HBTE rebounded in August, tracking a broad reversal across digital assets after the extended selloff that ran from June through most of July. Bitcoin stabilized in the low- US$60,000s through early and mid-August, then staged a rapid rally in the back half of the month — clearing $69,000, then $75,000, and briefly trading above $81,000 around August 25th before easing to close the month near $78,000. The advance was fueled by renewed spot Bitcoin ETF inflows and improving sentiment around regulatory clarity for digital assets.

HBTE benefited from Bitcoin’s forceful reversal of its 21-month low with exposure toward direct bitcoin ETFs and select Bitcoin treasury companies driving the bulk of the gain.

The ETF’s active covered call overlay continued to generate monthly income, though the speed and magnitude of the August advance likely capped a portion of the upside participation in select names, consistent with the strategy’s design, however premium generation remains robust and total returns are benefiting strongly from the recent moves.

Outlook | Digital asset equities face a more constructive near-term technical backdrop following August’s reversal, though correlation to U.S. Federal Reserve policy expectations and mega-cap tech momentum remains a swing factor. 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, and the deeper integration of Bitcoin mining infrastructure into regulated global energy and financial frameworks, coupled with expanded use cases for existing infrastructure.

Harvest Bitcoin Enhanced Income ETF

HBIX provides indirect, levered exposure to Bitcoin through investment in the iShares Bitcoin Trust ETF (IBIT US). The ETF rose meaningfully in August, tracking a broad reversal across digital assets after the extended selloff that ran from June through most of July. Bitcoin stabilized in the low- US$60,000s through early and mid-August, then staged a rapid rally in the back half of the month — clearing $69,000, then $75,000, and briefly trading above $81,000 around August 25th before easing to close the month near $78,000. The advance was fueled by renewed spot Bitcoin ETF inflows and improving sentiment around regulatory clarity for digital assets.

HBTE benefited from Bitcoin’s forceful reversal of its 21-month low with exposure toward direct bitcoin ETFs and select Bitcoin treasury companies driving the bulk of the gain.

Outlook | Near-term outlook remains closely tied to Bitcoin prices and the evolving Fed rate path following Jackson Hole.  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 rose sharply in August as strong earnings results from select underlying companies supplemented a strong rally in Bitcoin and crypto-currency related equities. Significant gains in CRCY (invests in Circle Internet Group), PLTE (invests in Palantir), MSTE (invests in Strategy Inc.) and SPXE (invests in SpaceX) were key drivers of the strong performance. Modest declines in AVGY (invests in Broadcom) and GOGY (invests in Alphabet) partially offset this strength. There were no major changes to portfolio constituents during the month.

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

Harvest Canadian High Income Shares ETF

HHIC rose sharply in August with the Canadian equity market experiencing a strong rally in gold as well as a jump in shares of Shopify, which combined to more than offset weakness across the bank sector. More specifically, gains in the ETF were also driven by the increase in Shopify as well as its position in Agnico Eagle Mines. Modest declines in the Fund’s position in Toronto-Dominion Bank and Royal Bank of Canada partially offset these gains. 

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

HHII commenced trading on 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 ETF benefitted from positive returns across its technology holdings with notable strength in SK Hynix and Nokia. Positions in BHP Group and Spotify also rose significantly during the month. On the flip side, the ETF recorded declines in positions of Anheuser-Busch Inbev and financial services holdings Barclays and HSBC Holdings. 

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.