Monthly ETF Commentary

March 2026

The S&P 500 posted its worst month since 2022 this past March, falling 5%. That decline has been driven by uncertainty surrounding the ongoing Iran War, rising oil prices, and broad sector weakness. Even traditionally defensive sectors like healthcare were caught in the pullback. Only energy equities moved higher on the back of higher oil and gas prices.

Underneath the turbulence, the anatomy of a potential bottoming process appears to be taking shape. The question we ruminate on at the turn of the season; Is the market spring loaded, or just catching spring fever? In other words, is the market poised to bounce back or is there more downside to come?

An analogy that we have relied on in the past is worth repeating. When pilots get vertigo, they are taught to follow their instruments. In today’s macro fog, we (the Harvest investment team) are looking at our gauges. Purchasing Manager’s Index (PMIs), consumer spending, retail sales, and other indicators remain constructive. Earnings estimates have climbed, but prices are down. What can we glean from this climate?

Known unknowns

The current environment is fraught with elevated risks and uncertainties. Markets see the risk in the form of oil price spikes, inflationary pressure, persistent contagion, and can price it partially. However, the endpoint is not something that the market can model and the cost is elevated volatility.

Historically, markets absorbed the Gulf War, the September 11th, 2001, attacks, the Russia-Ukraine war and multiple wars and crises in the Middle East. Each time, disciplined investors have been rewarded. Still, an end to the current scenario is unknown and escalation as well as tail risks (extreme negative events) remain elevated as we look for signs for resolution.

Valuation resets

Markets do not ring a bell at the bottom. In other words, there’s no clear indication of when the markets have bottomed and poised for a turn around. Nonetheless, expectations for the rest of 2026 remain positive. Further, valuations in many sectors are cheaper than they were in the late winter. This is especially true in higher growth areas like technology.

Traditional panic selling has not emerged yet, but signs are building. There has been a capitulation in sentiment with the Fear & Greed Index well in the “Extreme Fear” range at the time of this writing. We have also witnessed equal-weight outperforming cap-weighted equities. Through all this, it is important to remember that corrections caused by factors external to the markets can recover faster than cyclical ones.

When these negative external shocks are resolved or passed, markets can rally hard and fast. We are not calling for a straight line up for equities. Indeed, tail risks remain elevated. However, the April 2025 recovery saw the S&P 500 bounce back from significant low when sentiment was at its worst following the “Liberation Day” tariff announcement.

A loaded spring market

Despite the growing chorus of bearish sentiment, economic data has been more constructive than headlines suggest in Canada. The S&P/TSX Composite Index finished March down approximately 4.6%. That was better than many global markets.

Within Harvest’s Canadian focused strategies, the Harvest Canadian Equity Income Leaders ETF (TSX: HLIF) was positive on the month. This is an illustration of what high-income, oligopoly-style businesses can do in a volatile tape. The period has also been historically positive for low volatility strategies.

Harvest Canadian High Income Shares ETF (TSX: HHIC) offers a diverse multi-sector portfolio that captures a selection of established Canadian companies, positioned for strong growth. Meanwhile, Harvest single stock ETFs have continued to play their role with targeted exposure with enhance income. This allows investors to stay invested in core names while generating income through volatility.

Across our suite of Canadian focused ETFs, we have several core weights that can be included in the “barbell strategy” – a strategy that seeks to strike a balance between risk and reward by investing in “risk-on” assets and defensive “risk-off” assets – to help navigate some of the present-day volatility.

Summary

Turbulence remains, but beneath the surface earnings are intact, valuations have compressed, while breadth has improved. The anatomy of a bottoming process appears to be taking shape, but timing is uncertain. Markets may not ring a bell at the bottom, but we tend to get whispers. Those appear through sentiment lows, valuation resets, and earnings resilience. We have seen flashing signs for all three lately.

A diversified portfolio with defensive income allocations, paired with selective growth-oriented assets, appears prudent as we head into the spring.

Harvest Healthcare Leaders Income ETF

Healthcare pulled back in March with no single catalyst to explain the magnitude of the decline. It came amid a tougher macro backdrop and ongoing policy noise, including pharmaceutical tariff discussions.

Being diversified across pharmaceuticals, managed care, med-tech, and life sciences remained beneficial to HHL. Higher-growth med-tech names like Stryker and Boston Scientific underperformed, while large biopharma names, including Johnson & Johnson, Regeneron Pharmaceuticals, and Merck & Co., outperformed. Several major pharma companies such as Amgen, AstraZeneca, Bristol Myers Squibb, Eli Lilly, Merck, and Novartis were stabilized after entering voluntary agreements with the U.S. administration, committing to domestic investment and pricing measures in exchange for tariff relief.

Managed care holdings lagged due to elevated medical cost ratios and uncertainty around the US government Medicare Advantage reimbursement. Companies like UnitedHealth Group and Elevance Health were among those negatively impacted. However, the final 2027 rate increase of 2.48%, announced in early April, exceeded expectations and drove a rebound. This removed a key overhang for the sub-sector.

We remained active in options strategies, using volatility from policy headlines to generate premium income. Given oversold conditions, we maintained lighter initial write levels to preserve upside participation.

Outlook | The near-term macro environment remains complex, with some ongoing sector specific policy uncertainty creating headline noise | The portfolio’s structural orientation toward large-cap, financially strong healthcare leaders, positions HHL well for any future recovery | Aging demographics, innovation (specifically in GLP-1 therapies and oncology), and a gradual normalization in managed care cost trends remain positive mid-term tailwinds.

Harvest Brand Leaders Plus Income ETF

HBF ended the month down modestly on a total return basis amid a volatile month for U.S. equities.  The primary factors that impacted the ETF’s investments during March included:

• • The conflict in the Middle East that began at the end of February led, which to significant market weakness in equities and bonds throughout March
  • The Technology sector continued to struggle, with recent weakness in software spreading to all areas of the sector as investors contemplated the impact of the conflict, while sharp increases in interest rates also contributed to pressure on valuations. Shares of Microsoft Corp continued the recent trend of underperformance on concerns about the ultimate return on investment from spending on AI infrastructure
  • Energy was the only sector to end the month with positive returns with a sharp increase in oil prices driving higher earnings expectations. The ETF’s position in Shell PLC benefitted from this trend.
  • Consumer Staples stocks were surprisingly weak given the negative market backdrop as investors mulled the impact of inflation. Shares of Procter & Gamble Co underperformed the sector during the month.

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

Harvest Tech Achievers Growth & Income ETF

HTA fell in March. Overall, the Tech. sector as well as the broader market was negatively impacted by concerns tied to the conflict in the Middle East.  In addition, valuations for growth stocks declined in general due to rising interest rates that stemmed from fears of a renewed inflation cycle, which were triggered by  a sharp spike in energy prices.

Shares of Meta Platforms Inc. were weak in March following a court ruling that found Meta liable for addictive design features and awarding damages to the plaintiff in the case.  Investors worried that this could mark a “Big Tobacco” moment for social media platforms that could lead to significant future liabilities.  Meta plans to appeal the ruling. 

Micron Technology shares sold off sharply, impacted by general weakness in growth companies and a report released by Google parent, Alphabet Inc., outlining an algorithmic approach to Large Language Model design that could significantly reduce memory requirements.  Investors worried this could significantly soften the bull case for storage hardware that has driven significant outperformance for the group over the past year.   

Software stocks held in relatively well during the month following significant underperformance since the beginning of the year.  Shares of TurboTax provider Intuit Inc. and cybersecurity vendor Palo Alto Networks were among the leaders in a bounce for the group.  HTA uses covered calls to generate income while remaining positioned to capture growth potential in leading tech names.

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

Harvest Equal Weight Global Utilities Income ETF

HUTL was slightly down for the month, but outperformed the Index meaningfully due to its energy pipeline exposure. As a defensive asset, HUTL’s relative outperformance against the broad stock market was notable given the escalation of the Iran War. Additional factors driving returns in March included:

• • The Iran War drove stocks lower in March, but those areas of “Defensive” and “Value” styles held off from steeper declines
  • Long bond yields were a headwind to more positive returns as they rose all month given the rising crude oil prices and worries about inflationary impacts
  • The AI boom remains, which highlights growing electricity demand, offering a medium-term tailwind for a sector that tends to be low growth 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.

Harvest Global REIT Leaders Income ETF

HGR fell during the month of March, wiping out previous gains and pushing the YTD performance in the red. The decline in March was inline with the MSCI World REITs Index . The sharp rise in crude oil prices, sparked inflation expectations to move higher, which in turn caused bond yields to move higher, culminating into negative force for the sector. More specific drivers of underlying performance during the month included:

• • The sell-off across sectors was broad-based in March, although there were a few notable differences – more defensive style or secular-story REITs or held in a touch better with Data Center REITs, Gas/Convenience REITs, and Grocery-anchored Plaza REITs cushioning some of the downside
  • The REIT sector was generally down, barring a few areas. This was due to rising yields and risk-off sentiment
  • Japanese and Hong Kong names experienced the biggest drop. These generally fall into multi-asset conglomerates and developers, and are not generally investable for HGR

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.

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

Harvest Energy Leaders Plus Income ETF

HPF and broader Energy stocks continued for a third month with extremely strong gains, as the war in Iran intensified. Notable catalysts for the month impacting trade in the energy sector were:

• • Higher Crude oil shot prices which almost doubled. This was bolstered by the increased intensity of the Iran War, as many began to speculate that ground troops may be the next step. The Strait of Hormuz remained effectively closed and energy infrastructure in the region continued to be hit by rockets and bombs. The supply concerns took WTI well above $100/bbl and Brent almost to $120/bbl
  • Relief efforts by the US and IEA countries as they coordinated a planned release of 400 million barrels from the Strategic Petroleum Reserves to help alleviate some of the short-term supply shortages.
  • More biased distribution of the gains in the sub-sectors to the higher Beta Exploration and Production companies. Notwithstanding, the Integrated names and the Refining companies benefitted strongly

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

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

Harvest US Bank Leaders Income ETF

HUBL fell in March alongside broad weakness in U.S. bank stocks. The sector faced several headwinds during the month, with concerns percolating around private credit market exposure and questions about the Federal Reserve’s path forward on interest rates.

Regional banks generally underperformed their larger diversified bank peers.  Due to their more concentrated exposure to traditional banking operations, regional banks could be negatively impacted if interest rates continue to rise significantly and economic growth slows following a significant jump in energy prices. 

Shares of Truist Financial Corp and Huntington Bancshares were the worst performers during the month, while shares of Citigroup bucked the industry trend and ended the month in positive territory.  Goldman Sachs Group and Morgan Stanley outperformed the group with investors continuing to expect a strong year for capital markets activity, highlighted by several potential high profile technology IPOs. 

 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.

Harvest Canadian Equity Income Leaders ETF

HLIF recorded positive gain in March, outperforming the benchmark S&P/TSX Composite Index that sold off aggressively.  The main contributions to HLIF relative strength included:

• • A Smaller weight in Precious Metals compared to the TSX Index
  • A Larger weight in Energy stocks versus the benchmark helped to drive positive relative return differential over the Index – as crude oil surged due to the Iran War
  • Heavier weights in the Utilities sector, which held off from steeper declines due to their defensive characteristics

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 was rebalanced and reconstituted in March with two name changes occurring late in the month. Choice Properties and National Bank were dropped on market cap and yield, respectively. Barrick Mining and Thomson Reuters were added into the ETF.

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

Harvest Travel & Leisure Income ETF

TRVI was down in March, with negative impacts from the Iran War and higher crude oil prices. Some of the more specific movements for the sector in the month:

• • Cruise lines and Airlines, which were the hardest hit. Both seem to be more tightly correlated to the negative impacts of higher crude oil prices
  • Casinos & Gaming, Hotels, Resorts and Lodging and the Travel Booking Sites were a lot more mixed in terms of performance, with some names higher on the month, while others lower – confused by the outlook for the consumer with the geopolitical concerns and heightened sensitivity to renewed inflation impacts
  • While the consumer has been more resilient than expected, economic data has been mixed recently, while inflationary concerns are now back to the top of their list

TRVI offers diversified exposure to top travel stocks.

There was one name change in the March reconstitution with Travel & Leisure Co replacing Air Canada.

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 March with concerns that a sharp spike in energy prices due to the conflict in the Middle East could lead to resurgent inflation and higher interest rates, stifling a nascent economic re-acceleration. 

Shares of General Electric, United Rentals Inc. and United Parcel Service were among the worst performers as stocks exposed to the economic cycle bore the brunt of weakness due to stagflation worries. 

Defense stocks, though still largely negative on the month, held up relatively well and shares of Delta Airlines bucked a significant negative trend for the airlines industry and closed the month in positive territory following positive earnings guidance on robust demand trends.   

HIND maintains its covered call strategy for added income while staying positioned to benefit from renewed industrial sector momentum.  The ETF was rebalanced in March.  There were no changes to portfolio constituents.

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

Overall, equities came under pressure due to geopolitical fallout from middle east conflict, with Energy sector being the only real beneficiary due to markedly higher prices of oil.

HVOI benefitted from lower exposure to gold equities, which was repriced significantly over the month. Restaurant Brands, Fairfax Financial, and TC Energy were some top contributing names, while Agnico Eagle Mines and Alimentation Couche-Tard detracted.

The portfolio reweighted during the month, with Rogers Communications and Canadian Natural Resources added, while Thomson Reuters and Descartes Systems were removed from the portfolio on higher risk metrics.

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 came under pressure due to geopolitical fallout from middle east conflict, with the Energy sector being the only beneficiary due to higher oil prices.

Banks stock were negative in the month, with TD and RBC holding in the best, while BNS came under more pressure. The option overlay was supportive, with added premiums received, as well as some risk mitigation through the sold puts. A partial downside hedge was also initiated in the ETF to provide additional downside protection, should banks sell off more materially.

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 came under pressure due to geopolitical fallout from middle east conflict, with the Energy sector being the only real beneficiary due to markedly higher prices of oil. HPYE shielded much of the downside by virtue of a well-rounded, diverse portfolio, and an effective option overlay. Also supplementing return was the holding in TBIL (Harvest Canadian T-Bill ETF), which is held to provide cash collateral versus sold puts.

Top contributors to HPYE on the month included Palo Alto Networks (cybersecurity strength and improved valuations), Exxon Mobil (on energy strength), and Oracle Corp. General Electric, Eli Lilly, and Meta 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 March, as long bond yields tracked higher back up to their 5% ceiling. This happened on the back of skyrocketing crude oil prices and the growing expectations for inflation to pick up materially, which flows into nominal bond yields. Front end yields also moved higher on new expectations for even a tiny chance of a near-term rate hike should inflation run out of control. Both ETFs were impacted by:

• • The disappearance of expectations of rate cuts for 2026 by the US Federal Reserve. There is now a small 10% chance of a rate hike — the Iran War and higher crude oil prices have triggered higher inflation expectations in bonds
  • The continuation of elevated yields tied to the unexpected risk that lingers around what US Fed independence looks like under an incoming Kevin Warsh chairmanship. Now, 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 negative returns in March, but fared better than the S&P 500 and Nasdaq, which had greater drawdowns during a volatile month. Overall, equities came under pressure due to the geopolitical fallout from the middle east conflict, with the Energy sector being the only real beneficiary due to markedly higher prices of oil. The lone bright spot was HLIF (Harvest Canadian Equity Income Leaders ETF), which was benefited from gains in the Energy sector. The most significant detractors included HHL (Harvest Healthcare Leaders Income ETF), as well as HTA (Harvest Technology Achievers Growth & Income ETF).

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

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

Harvest Balanced Income & Growth ETF

Harvest Balanced Income & Growth Enhanced ETF

HBIG and HBIE were down on the month but fared better than the S&P 500 and Nasdaq which had greater drawdowns during a volatile month. The lone bright spot was HLIF (Harvest Canadian Equity Income Leaders ETF), which benefitted from gains in the Energy sector. The most significant detractors included HHL (Harvest Healthcare Leaders Income ETF), as well as HTA (Harvest Technology Achievers Growth & Income ETF). Fixed income also detracted over the month, as the prospect of energy supply disruption increased interest rate expectations, and negatively impacted bond prices over the month.

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

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

Harvest Global Gold Giants Index ETF

The month of March saw a hefty selloff in gold in what seemed like a dash for liquidity, with the spike in crude oil almost doubling the price per barrel as the War in Iran ratcheted up and drove panic levels higher.

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

However, when concern gives way to panic, gold has historically sold off with risk assets, which did occur in March, as cash liquidity takes precedence. Higher bond yields can be a negative force for gold. 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.

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.

Outlook | Concerns around US Fed Independence remain despite the nomination of a potentially steadier US Fed Chair in Kevin Warsh | 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 was down in March, with negative impacts from the Iran War and higher crude oil prices. Some of the more specific movements for the sector in the month:

• • Cruise lines and Airlines, which were the hardest hit. Both seem to be more tightly correlated to the negative impacts of higher crude oil prices
  • Casinos & Gaming, Hotels, Resorts and Lodging and the Travel Booking Sites were inconsistent in terms of performance, with some names higher on the month, while others lower – confused by the outlook for the consumer with the geopolitical concerns and heightened sensitivity to renewed inflation impacts
  • While the consumer has been more resilient than expected, economic data has been mixed recently, while inflationary concerns are now back to the top of the list

TRVL offers diversified exposure to top travel stocks.

There was one name change in the March reconstitution with Travel & Leisure Co replacing Air Canada.

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

Harvest Clean Energy ETF

HCLN saw a bit of a bounce in the month of March. Some of the drivers in the ETF:

• • Challenging market conditions remain, with the changing narrative around tariffs after the Supreme Court forced the Trump administration to change tact, but there has also been some revivied 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 just slightly positive from an overall portfolio perspective
  • But under the hood of the sub-sectors, there were some divergences as names like Verbio, SolarEdge, Plug Power and Boralex were up sharply on the month, while names like T1 Energy, GCL Technologies, Canadian Solar and ReNew Energy Global were down quite a bit
  • 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

Overall, equities came under pressure due to geopolitical fallout from middle east conflict, which the Energy sector the only real beneficiary due to markedly higher prices of oil.  HOVI benefitted from lower exposure to gold equities, which was repriced significantly over the month. Restaurant Brands, Fairfax Financial, and TC Energy were some top contributing names, while Agnico Eagle Mines and Alimentation Couche-Tard detracted.

The portfolio reweighted during the month, with Rogers Communications and Canadian Natural Resources added, while Thomson Reuters and Descartes Systems were removed from the portfolio on higher risk metrics.

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 volatility in March, ultimately ending the month down ~4.9% m/m on a total return basis. This change mirrored broader market movements with the S&P 500 dropping ~5% over the same period owing primarily to the conflict in Iran; the closure of the strait of Hormuz; and the ensuing increase in the price of oil at and above USD $100/ barrel. 

Key Performance Drivers:

• • Circle (CRCL US) emerged as a primary driver for HBLK in March. The company’s release of the “Internet Financial System” roadmap highlighted the scale of USDC on-chain settlement, which surpassed $18 trillion in annualized volume
  • By providing the essential programmable layer for global trade, Circle solidified its role as a liquidity provider that supports the entire digital asset economy

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 volatility in March. The ETF mirrored broader market movements with the S&P 500 dropping ~5% over the same period owing primarily to the conflict in Iran; the closure of the strait of Hormuz; and the ensuing increase in the price of oil at and above USD $100/ barrel.

HBTE benefitted from exposure to:

• • BLSH US, a crypto exchange operating company, increased ~14% over the period supported by elevated Bitcoin-driven trading volumes, improving market volatility, and growing institutional engagement in digital asset markets. Increased exchange activity and positive crypto policy momentum further reinforced revenue expectations and investor sentiment
  • MSTR US, a leading bitcoin treasury company, continued its accumulation of bitcoin in March with year-to-date accumulation near 90,000 coins. The high conviction of MSTR in the digital asset helped to spur investor sentiment on the sector and kept the price action of bitcoin range bound

Outlook | Short-term technicals remain defensive following volatility in recent months. Long-term fundamentals are tied to the institutionalization of the ecosystem and the expansion of digital assets into regulated financial markets. HBTE holds 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 ETF experienced heightened volatility in March. HBIX benefitted from the combined effects of IBIT US ending the month up ~3%, USD/CAD appreciation, and the covered call strategy that enabled premium capture and thus outperformance above the underlying.

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

Harvest Diversified High Income Shares ETF

HHIS declined in March, still faring better than the S&P 500 and Nasdaq 100 Index. Equities came under pressure due to geopolitical fallout from middle east conflict. The Energy sector was the only real beneficiary due to markedly higher prices of oil. Higher growth equities fared slightly better as valuations improved, while negative AI sentiment seems to be abating.

Positive contributors for HHIS included CRCY (invests in Circle), PLTE (invests in Palantir), and CRWY (invests in CrowdStrike), with the latter two benefitting from improving sentiment in defense and cybersecurity. The main detractors for HHIS in the period were METE (invests in Meta), LLHE (invests in Eli Lilly) and GOGY (invests in Alphabet).

HHIS made only minor adjustments during the month, trimming a few winners such as APLE (invests in Apple) and AVGY (invests in Broadcom), while deploying proceeds to some lesser weights where their valuations were lowered.

Option premiums were well supported by increased market volatility. 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

For March, the S&P/TSX Composite Index fell 4%. Equities came under pressure due to geopolitical fallout from middle east conflict, with the energy sector the only real beneficiary due to higher oil prices.

HHIC benefitted from from its energy holdings, that includes Suncor, Canadian Natural Resources, and Enbridge. On the flip side it was negatively impacted by Agnico Eagle Mines which fell for the month as gold prices fell.

The corresponding single stock ETFs had similar outcomes with SUHE, CNQE, and ENBE benefiting from higher oil prices. Gold price which corrected lower had a negative impact on AEME.

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, with only modest tweaks early in the month to capture value on Agnico Eagle and Cameco.

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.