Monthly ETF Commentary

October 2026

Macro snapshot

September market recap

There was a pause for broader markets in the month of September despite some bearish headlines that threatened to pull the S&P 500 into the negative.

Breadth was narrower, with only Technology and Communication Services posting gains. Meanwhile, Healthcare finished among the stronger sectors for the month. This was an unusual development, as defensive sectors like Healthcare rarely participate alongside higher-growth areas. Back in August, we unveiled a piece that pointed to some of the signs that a recovery was taking shape in Healthcare.

Most other sectors pulled back over the course of the month.

Diagnosing the autumn market

This is not a bear market. It is a market that is digesting gains and rotating leadership. It is also worth noting that the market is not being carried higher by speculation, or by stretched valuations. The broader market now trades near its 10-year average valuation, while the equal-weight market trades below it.

Market prices have climbed, but earnings have risen faster.

Indeed, the market is still being driven by earnings growth. This is a phenomenon we expanded on in the piece “Beyond the Headlines: Why AI Still Supports the Bull Market”. With bond yields rising, this remains a key theme as we move through the month of October. Investors should start to get answers on both fronts when U.S. banks kick off earnings season on October 13th.

Fed rate hike and rising bond yields

Meanwhile, long-term yields have continued to trend higher on inflation concerns. In a bid to temper inflation, the United States Federal Open Market Committee (FOMC) voted to raise the federal funds rate by 25 basis points on September 15-16. This was the first time the Fed has elected to raise its benchmark interest rate since 2023.

Rising yields is something our investment team continues to watch closely. A steeper yield curve generally supports bank margins, but risk remains. Higher long-term rates eventually impact mortgage activity, corporate borrowing, and lending demand.

The climb in bond yields remains the elephant in the room for markets. Rising yields have created volatility across rate-sensitive sectors, including utilities. We have seen some stabilization in early October. However, yields will likely continue to dominate headlines early in the month.

A reprieve in yields or assurance from the banks that lending is on solid ground would be welcomed by the market.

Midterm elections: The view from up north

As we await earnings in key areas, the headlines will continue to focus on the upcoming U.S. midterm elections. Historical patterns suggest that markets are often influenced more by broader economic conditions than by election outcomes. When we look back at previous midterm cycles, market performance has been mixed in the run-up to elections and has often stabilized once political uncertainty is resolved.

In September, we released a deep dive on this question; “How Do the Midterm Elections Impact the Stock Market?” Ultimately our conclusion remains unchanged: There is no reliable election-trading playbook. The economy, earnings, and interest rates have mattered far more over time than who occupies political office.

Canada is not immune to election consequences nor rate moves south of the border. Currency movements continue to signal uncertainty around trade. Last month, we saw increased volatility across Canadian equities, especially in the Materials sectors. That volatility could present opportunity for investors.

The Harvest Canadian High Income Shares ETF (TSX: HHIC), which holds a portfolio of TSX-listed equities, added five new holdings in September. Those five names added were Nutrien, Alimentation Couche-Tard, Brookfield Corporation, Lundin Mining, and Celestica. This increases the representation of HHIC beyond traditional Canadian dividend sectors, adding exposure across agriculture, consumer retail, industrial metals, technology, and alternative assets.

The October Scorecard

Earnings season is about to become the market’s scorecard as we balance the impact of higher rates versus AI spending, which remains the dominant investment theme. Breadth continues to look healthy beneath the surface, while elections should dominate headlines going into November.

On the risk side, headlines are noisy, bond yields are rising, and volatility is likely to stay elevated ahead of a contentious election period. However, earnings growth is encouraging, valuations are reasonable, and economic activity has been resilient.

This is why we are sticking with the barbell approach; maintaining some defensive income while viewing pullbacks as opportunities to add growth.

Harvest Healthcare Leaders Income ETF

HHL pulled back during September along with the broader S&P 500, however healthcare was a notable standout among defensive sectors with only the Tech & Comm services positive during the month, the healthcare sector was the third best performing.  This is somewhat atypical of what we have seen over recent months where there has been more inverse correlation between Tech+ and healthcare.  Also notable during the month was the wide divergence in the underlying holdings – with some of the med-tech names like Stryker pulling back on supply chain disruptions while in the same space, Intuitive Surgical rallied on the back of a positive corporate update at an industry conference. 

In our recent sector outlook, outlining some of the key shorter term catalysts, we highlighted healthcare’s earnings growth forecasts for 2027 have re-accelerated.  We await signs of this through the upcoming earnings season as potential catalysts for further improvements in sentiment towards the sector and potential for re-ratings.

HHL invests in 20 large-cap healthcare leaders, employs an active covered call strategy, and pays a monthly distribution of $0.06 per unit as at September 30, 2026.  There were no name changes during the month.

Outlook | Valuations across much of the broader healthcare sector remain attractive | Healthcare’s pulled back but in a rarity in recent months was near the top performing Tech + sectors | Policy-related uncertainty remains an ongoing consideration for the sector | Longer-term demand drivers remain intact.

Harvest US Equity Leaders Income ETF¹

HBF fell in September amidst a weaker month for U.S. equities in general.  A modest rebound in technology and related stocks bucked a trend of weakness across market sectors.   

The ETF’s performance was negatively impacted by weakness across the financials sector as investors worried that rising rates could depress loan growth. Shares of McDonald’s also fell sharply during the month following a disappointing earnings report.  Modest rallies in positions in Shell PLC and Caterpillar Inc. partially offset these declines.  The ETF will be rebalanced in October.

Outlook | Strong earnings growth and improving economic data remain supportive for equity markets, however ongoing geopolitical uncertainty, macroeconomic concerns and the upcoming U.S. mid-term elections remain key sources of potential volatility.  An equally weighted portfolio may help to improve diversification compared to increasingly concentrated market cap weighted index strategies and an active covered call strategy can offer a way to monetize market volatility while remaining invested.

Harvest Tech Leaders Income ETF²

HTA rose in September as the technology sector continued its recent rally.  The broad rally across software stocks paused during the month, with AI infrastructure-focused stocks rebounding led by semiconductors despite persistent questions around the durability of spending on data centers. 

ETF performance benefitted from a sharp rally in shares of Meta Platforms following the release and reportedly rapid adoption of the company’s Muse AI agent platform.  Shares of Advanced Micro Devices also rallied strongly during the month.  This strong performance was partially offset by a decline in Intuit Inc. following a disappointing earnings release and a general pullback in the application software industry after a strong rally in recent months.  The ETF will be rebalanced in October.

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

Harvest Utilities Leaders Income ETF³

HUTL was dragged down by climbing interest rates in September. All sub-sectors of the ETF were impacted negatively interest rate moments and sentiments.  Some of the underlying factors that contributed to performance included:

• • Fortum was the lone standout with positive results on the month, which it captured on the news of a deal with Google that will see Fortum supply nuclear power in Finland to Google from the Loviisa nuclear power plant.
  • Beyond this one outlier, the remainder of the portfolio from Utilities to Telecom, to Energy Pipelines were all dragged down on valuations by the persistently rising yields – with the 30-year Treasury yields now closer to 6% than 5%
  • The AI boom remains, which highlights growing electricity demand, offering a medium-term tailwind for a sector that tends to be low growth – this has applied to energy pipelines as well, especially those with natural gas exposure for US data center demand needs

HUTL’s portfolio of 30 top utility, telecom, and pipeline companies offers a balance of defensive income generation while capturing potential upside. The portfolio is supported by a covered call overlay to boost monthly cash flows.

Outlook | HUTL is well-positioned when uncertainty hits 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

September saw treasury yields on the 30-year bond reaching levels that are closer to 6% than 5%. This caused interest-rate sensitive sectors like REITs to fall and contributed to a decline in performance of HGR for the month. More specific drivers of underlying performance during the month included:

• • Residential and Diversified REITs, along with long-duration Triple-Net-Lease Retails REITs were sold off more aggressively during the month.
  • Some of the more defensive-tilted REITs, like Retail Strip Plazas and Healthcare REITs, but also Data Center REITs offered a bit of balance, but across the board returns were quite negative on the month for the whole sector.

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 Income ETF⁵

HPF moved slightly lower in September. During the month, crude oil experienced significant volatility, rallying strongly before pulling back, but ultimately ended the month higher relative to August. During the month crude oil prices pushed closer to $110/bbl before settling at approximately $90/bbl on WTI, which was higher the $87/bbl at the end of August. The notable catalysts for the energy sector:

• • The noise and conflicting information being provided by both the US and Iran on whether a deal is being negotiated leaves market participants very uncertain on directionality. Additionally, the continued stories about ships being hit in the Strait of Hormuz has kept oil and energy stocks elevated.
  • Refining & Marketing stocks performed quite well in September, with Integrated and Exploration & Production companies also faring decently during the month. Energy Pipelines lagged more given their lower Beta to energy price and the rising Treasury yields which impacts on valuations in the near-term.

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

The ETF will be reconstituted and rebalanced in October.

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 September as investors soured on the outlook for bank stocks amid a sharp rally in longer term treasury yields. The U.S. Federal Reserve first increase in the Federal ETF’s target rate since July 2023 also weighed on the sentiments.  Despite a steepening yield curve, which is generally regarded as supportive of bank profitability, investors worried that higher rates could dampen demand for loans while also raising the cost of deposits.

Declines across the industry were broad-based during the month with capital markets -focused stocks underperforming banks.  Weaknesses were generally uniform across the bank industry, with little difference in returns between most regional banks and their mega-cap universal brethren.  Shares of Bank of America lagged the broader banking group after the company’s CEO gave some cautious comments regarding trading revenues and investment banking fees at an investment conference.  Conversely, shares of Citigroup outperformed after management made positive comments, including raising targets on several key operational metrics, at the same conference.   

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. 

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

HLIF sold off a touch in September amid higher yields, weakness in commodities like gold selling off, and crude oil prices moving higher initially before selling off at month end, albeit remaining higher relative to August. Some of the main areas to focus on this month include:

• • Energy pipelines, along with Utilities and Telecom were impacted by rising yields as interest-rate sensitive stocks.
  • Gold mining exposure in the ETF, Barrick Gold, was dragged lower by the rising yields which pressured gold prices lower.
  • Financials held in a bit better on the month, and with a large weight in the ETF, worked as a bit of ballast against bigger losses elsewhere.

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 September, with just one name change occurring – Barrick Gold was exited as it dropped into the bottom 50^th percentile for yield and it was replaced by Hydro One.

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 fell further in September as crude oil and energy prices continued to move higher on the lack of clarity with Iran negotiation efforts and the continued news that ships were being hit in the Strait of Hormuz. This has led to potentially challenged margins and weaker outlooks for many travel-related stocks.

Surprisingly the airlines moved higher over the month, but that comes after a tough few months prior. Meanwhile, the Travel Booking sites, after carrying the Index over the past few months, saw a reversal in fortune and sold off during the month of September, as AI risks crept back into the headlines. Given the bigger weights in these names, they drove much of the negative performance for the month.

TRVI offers diversified exposure to top travel stocks. The ETF was rebalanced and reconstituted to the Index in September, with one name change – SkyWest Inc was replaced by 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

HIND fell modestly in September, as investors contemplated the economic impact of higher rates following a hawkish Federal Reserve meeting that ended with the first increase to the federal ETF’s rate since July 2023 and a sharp increase in long term treasury yields.  Shares of companies deemed to be beneficiaries of the ongoing AI infrastructure built out generally rallied during the month, however companies with more pure exposure to the economic cycle, such as those in the transportation industry, continued to struggle.  The aerospace and defense industry also remained under some pressure, despite ongoing conflicts in the Middle East and Eastern Europe.

Shares of General Dynamics, RTX and Union Pacific were among the notable underperformers during the month, with weakness partially offset by rebounds in GE Vernova and Eaton Corp.  Shares of Delta Airlines also rallied in September as oil prices retreated from recent highs.

The ETF was rebalanced in September, and no changes were made 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

The ETF fell during the month with Canadian equities falling broadly.  The communication services sector was a source of weakness for the ETF with shares of Rogers, BCE and Telus all declining significantly.  Gold stocks were another significant contributor to the ETF’s decline as precious metals came under some pressure during the month as interest rates increased throughout the month.  Contrary to their U.S. bank counterparts, several Canadian banks, such as Bank of Nova Scotia and Bank of Montreal, experienced positive returns during the month, while grocery chains Weston and Loblaw Companies also rallied.  

The ETF was reconstituted during the month of September, focusing on companies demonstrating low volatility characteristics in accordance with the ETF’s investment mandate.  A position in Wheaton Precious Metals was removed and replaced with Manulife Financial Corp.

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 saw choppy trading around a more sideways performance profile in September. But they still hold onto their phenomenal gains that have been witnessed over the past almost 2 years.

Overall, the ETF ended the month similarly positioned to August, while selling downside put options and getting paid to wait for better prices to re-enter some bank stock positions, after the rapid ascent over the past couple years. This strategy is enabling investors to generate attractive tax-efficient income, while taking a more risk-mitigated approach to bank equity in the short term.

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

Harvest Premium Yield Enhanced ETF

Overall, US equities were generally very flat on the month. The US Index saw Semiconductors and Internet Media companies contribute the most to gains, while this was offset by losses in Banking, Aerospace & Defense, and some Retail exposures. The ETF, while naturally being less exposed to stock market movements through its calls/puts writing strategy, still benefited from being invested in Technology and Internet Media but did see the same drag from Banks and Consumer stocks.

Top contributors on the month included Meta, Applied Materials, and Apple.  Goldman Sachs, MacDonald’s, and Bank of America were the larger detractors.

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

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

Harvest Premium Yield Gold ETF

In September, gold bullion reversed almost all gains from August, due to the continued rising yield curve, particularly the long end. Gold mining stocks saw greater downside moves, given the fact that gold prices flow through the business with leverage from the operating margin. This had a negative impact to the ETF, but the effect was cushioned by its option writing strategy.

Covered call positioning in the ETF has declined as the gold mining stock rally matched up with certain call option strike levels being hit on the upside and thus led to structurally selling certain stock positions for profit. The strategy is now 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 continues to offer 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

A rising yield curve left HPYT and HPYM negative for the month of September. Given the much higher duration of long bonds in HPYT the relative underperformance was more noticeable in HPYT once again. The curve bear flattened during the month, but some of that flattening dissipated in the final week of the month with shorter-term yields not following longer yields higher, as more aggressive rate hike timelines simmered down.

The continuation of uncertainty with regards to any resolution of hostilities with the US and Iran and the reopening of the Strait of Hormuz has cause Treasury yields at the long end to rise.

Meanwhile, the Federal Reserve under Kevin Warsh has raised rates for the first time after the last cut back in December of 2025. This is in a bid to lean more hawkish and help to head off the stickier levels of inflation, and to meet its mandate of price stability.

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 fell modestly during the month due to declines across most of the ETF’s holdings, with particular softness in HUBL (Harvest U.S. Bank Leaders Income ETF), HUTL (Harvest Utility Leaders Income ETF), and TRVI (Harvest Travel & Leisure Income ETF).  This was partially offset by positive performance in HTA (Harvest Tech Leaders Income ETF) and HHIS/HHIH (Harvest Diversified High Income Shares ETF/Harvest High Income Shares ETF, respectively) HDIF slightly underperformed HRIF due to its modest 25% leverage. 

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 negative on the month with performance weighed down by rising yields and uncertainty in the Middle East but partially offset by gains in Technology.  Within this context, positions in HPYM (Harvest Premium Yield 7-10 Year Treasury ETF) and HPYT (Harvest Premium Yield Treasury ETF) were the weakest performers, with interest-rate sensitive HUTL (Harvest Utilities Leaders Income ETF) adding to declines.  Meanwhile, HTA (Harvest Tech Leaders Income ETF) and HHIH (Harvest High Income Equity Shares) were positive performers. HHL (Harvest Healthcare Leaders Income ETF) also saw very modest declines on the month. 

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

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

Harvest Global Gold Giants Index ETF

Gold prices have almost given back their entire August rally, as U.S. treasury yields continue to push even higher on sustained uncertainty in the crude oil and energy markets and the potential downstream inflationary impacts. HGGG also sold off on the falling gold prices, as gold miners have leverage to the price of gold through their operating margins.

In recent years, gold has been attracting flows as something that can hold value in an environment of trust erosion and wealth protection. Gold retains its appeal as a safe-haven asset when the unexpected hits, which is arguably heightened these days, but also amidst sticky inflation and rising deficits.

However, when concern gives way to panic, gold has historically also tended to sell off with risk assets, as cash liquidity takes precedence. Higher bond yields can also 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.

Outlook | We continue to evaluate the new Fed regime that has hiked rates after the last cut in December 2025 | Geopolitical noise and stickier inflation keep gold’s safe haven appeal intact longer-term | Gold producers can offer upside leverage and margin strength.

Harvest Travel & Leisure Index ETF

TRVL fell further in September as crude oil and energy prices continued to move higher on the lack of clarity with Iran negotiation efforts and the continued news that ships were being hit in the Strait of Hormuz. This has led to potentially challenged margins and weaker outlooks for many travel-related stocks.

Surprisingly the airlines moved higher over the month, but that comes after a tough few months prior. Meanwhile, the Travel Booking sites, after carrying the Index over the past few months, saw a reversal in fortune and sold off during the month of September, as AI risks crept back into the headlines. Given the bigger weights in these names, they drove much of the negative performance for the month.

 TRVL offers diversified exposure to top travel stocks. The ETF was rebalanced and reconstituted to the Index in September, with one name change – SkyWest Inc was replaced by 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

Clean Energy stocks remained under pressure in September as rising bond yields and a more hawkish Federal Reserve outweighed another sharp move higher in crude oil. Some of the drivers in the ETF during the month:

• • S.-Iran hostilities intensified and peace talks stalled, pushing crude oil prices sharpy higher again. As in August, renewables did not capture the “alternative fuel” trade given the concerns around geo-political issues and economic growth impacts. The long-term Treasury yields climbed to multi-decade highs, weighing on capital-intensive renewable developers and solar names.
  • Long-term clean energy demand remains 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.

Following the completion of the Brookfield-led acquisition of Boralex in August, REX American Resources was added to the portfolio as the replacement, returning the ETF to 40 holdings.

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

Harvest Low Volatility Canadian Equity ETF

The ETF fell during the month with Canadian equities falling broadly.  The communication services sector was a source of weakness for the ETF with shares of Rogers, BCE and Telus all declining significantly.  Gold stocks were a significant contributor to the ETF’s decline as precious metals came under some pressure during the month as interest rates increased throughout the month.  Contrary to their U.S. bank counterparts, several Canadian banks, such as Bank of Nova Scotia and Bank of Montreal, experienced positive returns during the month, while grocery chains Weston and Loblaw Companies also rallied. 

The ETF was reconstituted during the month of September, focusing on companies demonstrating low volatility characteristics in accordance with the ETF’s investment mandate.  The ETF removed its holding in Wheaton Precious Metals replacing with Manulife Financial Corp.

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 remained supported by a constructive backdrop for digital assets in September as Bitcoin extended its August recovery, gaining approximately 7% during the month and trading into the mid-US$80,000 range by month-end. Institutional participation and continued interest in regulated digital asset investment vehicles remained supportive of the broader sector.

September also reinforced the growing convergence between digital asset infrastructure and artificial intelligence. Bitcoin mining and digital infrastructure companies continued to explore opportunities to leverage existing power and data centre capacity for AI and high-performance computing workloads, broadening the potential opportunity set beyond traditional cryptocurrency mining. HBLK maintained meaningful exposure to companies participating across these areas. 

The portfolio saw no constituent additions or removals during the month, although exposure shifted within the existing basket as part of the ETF’s index-driven positioning.

Outlook | Long-term fundamentals remain tied to institutional adoption of digital assets, continued development of blockchain-based financial infrastructure, and increasing demand for computing and power capacity from AI and cloud applications | The continued evolution of former Bitcoin mining infrastructure toward AI and high-performance computing is broadening the opportunity set for several companies within the blockchain ecosystem, while Bitcoin prices and institutional capital flows remain important near-term drivers.

Harvest Bitcoin Leaders Enhanced Income ETF

HBTE remained positioned to participate in the continued recovery across digital assets in September as Bitcoin extended its recovery through September, advancing approximately 7% during the month and reaching an intra-month high above US$87,000 before moderating toward month-end. The continued strength in Bitcoin provided a constructive backdrop for HBTE’s exposure across spot Bitcoin ETFs, digital asset platforms, Bitcoin treasury companies and other businesses tied to the broader Bitcoin ecosystem.

The ETF maintained diversified exposure across the Bitcoin ecosystem, including direct Bitcoin exposure through spot Bitcoin ETFs, digital asset platforms, Bitcoin treasury companies and digital infrastructure providers. The continued convergence between Bitcoin mining infrastructure and AI and high-performance computing remained an important theme, potentially broadening the opportunity set for several companies across the sector.

The ETF’s active covered call strategy continued to provide an additional source of income while maintaining exposure to the longer-term growth potential of Bitcoin and Bitcoin-related equities.

Outlook | The near-term outlook remains closely tied to Bitcoin prices | Institutional flows and the broader macroeconomic environment | Longer term, the investment thesis continues to be supported by growing institutional participation in Bitcoin, expansion of regulated digital asset investment vehicles, and the increasing integration of digital asset infrastructure into the broader financial and computing ecosystems.

Harvest Bitcoin Enhanced Income ETF

HBIX provides indirect, levered exposure to Bitcoin through investment in the iShares Bitcoin Trust ETF (IBIT US). Bitcoin maintained positive momentum through September, gaining approximately 7% during the month and reaching an eight-month high above US$87,000 before moderating toward month-end. The advance extended a strong August recovery and reflected continued investor interest in the digital asset class.

Digital asset markets remained sensitive to the broader macroeconomic environment during the month, particularly changing expectations for interest rates and inflation. Rising bond yields presented a headwind for risk assets at times, although softer inflation data toward month-end helped ease some concerns around the near-term path of monetary policy.

Outlook | The near-term outlook remains closely tied to Bitcoin prices, institutional participation, and the evolving macroeconomic environment |Longer term, the investment thesis continues to be supported by growing institutional adoption, increased access through spot Bitcoin investment vehicles and Bitcoin’s increasing integration into traditional financial markets |HBIX’s leverage and covered call strategy remain positioned to provide enhanced exposure to Bitcoin price movements while generating option premium.

Harvest Diversified High Income Shares ETF

HHIS saw gains in September as strong performance in many of the portfolio companies supplemented a strong rally in Bitcoin.  Significant gains were in AMDY (invests in Advanced Micro Devices), METE (invests in Meta Platforms), MSTE (invests in Strategy Inc), CRWY (invests in Crowdstrike Holdings), HODY (invests in Robinhood Markets), and SPXE (invests in SpaceX). Declines were witnessed in CRCY (invests in Circle Internet Group) and SOFY (invests in SoFi Technologies) as a partial drag on the gains elsewhere.  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

In September, HHIC reversed the gains of August. Much of the weakness was witnessed across resource names like Agnico Eagle Mines and Cameco, as well as in Enbridge. On the offsetting side, a rise in Suncor Energy partially offset these losses.

The constituents in HHIC were changed this month, with the addition of 5 new names to the ETF. The ETF now has 15 leading Canadian large caps.

The five names added were Nutrien, Lundin Mining, Alimentation Couche-Tard, Brookfield Corporation, and Celestica. This increases the representation of HHIC beyond the traditional Canadian dividend sectors, by increasing representation across agriculture, consumer retail, industrial metals, technology, and alternative assets.

The result is a more balanced portfolio that can participate in a wider variety of economic and market environments while continuing to focus on high-quality Canadian companies and generate high income.

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 has been trading relatively sideways but rose modestly in September driven by positive returns across the ETF’s technology positions with notable strength in ARM Holdings, SK Hynix and Taiwan Semiconductor.  These gains were partially offset by declines in shares of NOVY (invests in Novo Nordisk), Spotify 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.