Monthly ETF Commentary

July 2026

Macro snapshot

After two straight months of strong gains, the S&P 500 pulled back slightly in June. Technology, which constitutes a large portion of the S&P 500, experienced a drag which pulled down the broader index and reignited some light bearish commentary (negative perspective). In our view, this negative perspective appears premature, especially following the market’s best two-month stretch in years.

Beneath the pullback

The rotation to areas outside of technology is exactly what our investment management team has been watching for in the summer season. Technology names pulled back, with signs that capital is moving back into some of the areas that have been left behind during the April and May market rallies.

Healthcare was chief among those sectors, and it was at the top of the market in the month of June. This led the Harvest Healthcare Leaders Income ETF (TSX: HHL) to see a slight recovery on the month. Investors should keep an eye out for our healthcare sector focus coming later this summer.

The industrial sector was once again one of the top performers compared to other sectors in June. That puts industrials near the top of the market for the first half of 2026. The Harvest Industrial Leaders Income ETF (TSX: HIND) has benefitted from massive artificial intelligence (AI) capital expenditures and stimulus packages that are driving the ongoing cyclical recovery taking hold in the United States.

Market retreats are never pleasant, but investors must always be prepared for that eventuality. Thes good news is that, under the surface, the broadening of market participation, even in a flat-to-down month for the market, is a sign of a healthier market. That should encourage a positive outlook as we move into the middle of the summer season.

Gold’s correction

There was another market pullback that was worth noting in the month of June; gold. The yellow metal enjoyed an extraordinary run to all-time highs earlier in 2026, reaching above US$5,500 per ounce. Gold has corrected meaningfully in the late spring and early summer, down roughly 25% from its January peak. The historical safe-haven has been weighed down by a stronger U.S. dollar and fading rate-cut expectations.

Mid-term elections in the U.S. are creeping up fast, set for November 2026. No doubt, headlines will again surface in this environment. The structural case; central bank purchases, fiscal deficits, currency debasement, remain positive for the future of the yellow metal.

This recent retreat is a reminder that even safe-haven assets are not immune to sharp swings. On the back of this gold correction, we think this is a well-timed launch of the Harvest Premium Yield Gold ETF (TSX: HPYG). HPYG will provide exposure to the price of gold bullion and leading gold equities, with an option strategy to generate income and the application of leverage to enhance yield and growth potential.

Second half positioning

It is worth stepping back to look at the bigger picture in July 2026. The first half of the year was very strong, with near double-digit percentage returns on the S&P 500. Markets recovered from the correction in March, pushing to new highs in April and May. Growth remains the dominant theme. However, coming into the second half of 2026, our investment management view remains the same: Stay invested, stay diversified, and use volatility as an opportunity.

The barbell, quality growth balanced with defensive, high-income exposure.

Harvest Healthcare Leaders Income ETF

HHL rose in June. Several of the ETF’s holdings, including AbbVie, Eli Lilly, and Johnson & Johnson, had raised full-year 2026 guidance earlier in the year and carried that momentum into June; which combined with sector rotations out of technology companies, helped propel healthcare stocks higher. AbbVie (ABBV US) was the top contributor. The company raised full-year 2026 guidance following its first-quarter results, with growth in Skyrizi and Rinvoq offsetting the decline of legacy product Humira.

Boston Scientific (BSX US) was the largest detractor. The company disclosed a cut to its full-year 2026 guidance in late May, citing slower adoption of its WATCHMAN cardiac device. Shares remained under pressure through June as multiple analysts lowered price targets.

Outlook | Valuations across much of the broader sector remain attractive | The sector benefited from a rotation of capital and into defensive positioning | Policy-related uncertainty continues to be a factor | Within HHL, large-cap pharmaceutical names outperformed medical device names, some of which faced guidance cuts.

HHL invests in 20 large-cap healthcare leaders, employs an active covered call strategy, and pays a monthly distribution of $0.06 per unit.  The ETF will be rebalanced this month.

Harvest US Equity Leaders Income ETF¹

The rally in U.S. equities paused in early July and HBF fell modestly. Factors that impacted the ETF’s investments during June included:

• • Market rotation out of select mega-cap technology stocks, especially the “Magnificent 7” group of stocks.
  • Shares of Oracle Corp, which performed very strongly in the previous month, fell sharply in June, approaching their April lows, and was a significant drag on portfolio returns
  • The Financial services sector rallied, with strong performance among bank stocks. Shares of JPMorgan Chase & Co and Wells Fargo rose strongly.
  • Positive returns in the ETF’s positions in Caterpillar Inc. and UnitedHealth Group partially offset declines in other areas
  • Stocks in the energy sector continued to correct in June, as investors positioned for an end to the conflict in the Middle East, with the ETF’s position in Shell PLC falling modestly.

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.  The ETF will be rebalanced this month.

Harvest Tech Leaders Income ETF²

HTA rose modestly in June as investors continued to rush to gain exposure to the AI theme, driving stocks in the technology sector higher.

Hardware stocks, those companies typically benefitting from spending on AI infrastructure, rose in June.  Semiconductor equipment stocks were strong in the month with shares of Applied Materials and Lam Research surging on rising expectations for semiconductor manufacturing capacity expansion.

Software stocks sold off again in June as fears of AI disruption continued to weigh on the group.  Shares of cybersecurity vendor Palo Alto Networks bucked this trend and rallied strongly in June.

Semiconductors were mixed during the month. Storage-focused stocks Micron Technologies and Seagate Technologies rallied. However, compute-focused names Nvidia and Broadcom declined.

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.  The ETF will be rebalanced this month.

Harvest Utilities Leaders Income ETF³

HUTL ended the month slightly negative, but there was a divergence between positive gains in Utilities and Pipelines stocks versus a loss in the Telecoms. Given the weight of Telecoms in HUTL, it left the ETF with a relative underperformance against the MSCI World Utilities Index. Some of the underlying factors that contributed to performance included:

• • Telecoms seemed to exhibit quite a bit of weakness on the headlines coming from speculation that SpaceX, which just launched its IPO, might attempt to encroach on the Telecom sector. Certain analysts think it is a possibility SpaceX could leverage themselves into an agreement with one of the Big 3 in the US to launch a new direct-to-consumer competitor, but significant uncertainty remains.
  • The rise of Starlink also faces a challenges environment in the Canadian Telecom space, 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 presses forward, 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 leading 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 enhance 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 REIT Leaders Income ETF⁴

June was a positive month for HGR, outperforming the benchmark World Real Estate Index. With long bond yields continuing to hold around the 5% level, it doesn’t provide a tonne of directionality for interest-rate sensitive areas like REITs, but the turn around from May, where yields moved well through 5% on potential inflationary concern fallout from the war, was a help to REITs this month. Turning to some of the more specific drivers of underlying performance during the month:

• • The beaten down Real Estate sectors bounced in June |Diversified Healthcare REITs, including Healthpeak and Alexandria, saw very healthy gains | Office and Retail REITs also saw increases.
  • Our underweight in the more expensive Tower REITs also cushioned us from a relative perspective from the selloff in that sector, which occupies a large weight in the Index.
  • Not having exposure to the multi-asset, development, conglomerate type real estate companies, mostly in Japan, also added to relative outperformance against the Global Real Estate market, given the continued selloff those names have witnessed.

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 fell sharply in June, retracing almost half of the rally that had been witnessed in 2026 due to the US-Iran war. Crude oil prices have retraced all the upside gains since the war began given the likelihood that supply normalizes over time. Notable catalysts for the energy sector:

• • Given the bigger moves toward US-Iran de-escalation (although still delicate) the market has been quite comfortable to price in an eventual return to normal supply flows, and that has brought crude oil prices down another ~US$18/bbl in June, to below US$70/bbl.
  • Given the steep selloff in crude oil, the steadier sub-sectors were skewed to the “defensive” energy pipelines and Refining/Marketing focused companies, while the Exploration and Production (E&P) and Integrated sub-industries saw sharper declines.

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

The ETF will be rebalanced and reconstituted this month.

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

Harvest US Bank Leaders Income ETF

HUBL rose strongly in June.  Bank stocks seemed to take comfort from continued progress towards a longer-term end to hostilities in the Middle East and the resulting pull back in inflation expectations from falling oil prices.  A strong statement from incoming US Federal Reserve Chairman Kevin Warsh regarding the Fed’s commitment to price stability also seemed to resonate positively with bank investors. 

Returns across the banks industry were broadly solid during the month, with shares of Citizens Financial Group and Fifth Third Bancorp leading the group higher.  Though bank stocks were broadly strong during the month, returns for capital markets stocks Goldman Sachs Group and Morgan Stanley were lackluster.

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 Dividend Leaders Income ETF⁶

HLIF added yet again to gains in June, as Canadian stocks keep pushing further into all-time highs, with HLIF incredibly steady along the way. Some of the main areas to focus on this month include:

• • With Long Bond Yields falling on relief about inflation impacts from the global energy crisis from the US-Iran war, the interest-rate sensitives like the Financials and Utilities categories saw the strongest gains during the month, all with decently sizeable weights in HLIF
  • Offsetting some of this, gold stocks came down with declining geopolitical tensions, but also a more hawkish Fed, and Telecom stocks were impacted by the headline-driven scare that SpaceX might be pondering a US direct-to-consumer telecom competitor, though great uncertainty remains on this

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 reconstituted in June, with Cenovus falling out with yield in the bottom 50^th percentile and Lundin Gold falling out with yield in the top 5^th percentile. Replacing them were National Bank and Tourmaline.

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 rose sharply in June as signs of a sustainable end to hostilities in the Middle East led to a decline in oil prices and a reevaluation of the prospects for global travel.  Airline stocks rallied strongly as expectations for an improvement in demand for air travel and lower costs to airlines from a decline in fuel prices led to a reassessment of profitability for industry.  

Shares of Viking and Royal Caribbean Cruises also rallied strongly on these catalysts.  In addition, the ETF benefitted from strong performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio.  Shares of Wynn Resorts and Las Vegas Sands declined during the month as concerns about Macau gaming revenues weighed on the companies.

TRVI offers diversified exposure to top travel stocks.

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

Harvest Industrial Leaders Income ETF

HIND rallied strongly during the month, with positive contributions across the underlying subsectors.  While shares of AI investment beneficiaries Caterpillar Inc and GE Vernova continued to climb, other areas of the sector also performed well as investors seemed to embrace signs of an economic reacceleration in the U.S.  Shares of Deere & Co rallied following sharp earnings that led to a sell-off in May and advanced beyond their pre-earnings highs.  Meanwhile shares of Delta Air Lines continued to move higher as falling oil prices bolstered the company’s earnings outlook.    

Defense stocks continued to lag on the back for further signs of a sustained end to hostilities in the Middle East.  Among the ETF’s holdings, shares of Lockheed Martin Corp fell modestly.

The ETF was rebalanced in June.  A position in industrial component provider Ingersoll-Rand was removed and replaced with a position in power and cooling systems provider Vertiv Holdings.

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

Outlook | HIND remains exposed to economic cyclicals | Stimulative economic policies and elevated geopolitical tensions provide a positive backdrop for industry constituents | Tariff tensions remain a macro headwind.

Harvest Low Volatility Canadian Equity Income ETF

HVOI posted a positive return in June, outperforming the TSX. Most Canadian equities continued to experience strong returns, however signs of a more sustainable end to hostilities in the Middle East drove oil prices lower, weighing on Energy sector performance.  Bank stocks continued to surge in June, with the Big Six all experiencing high single- or low double- digit returns.  Alimentation Couche-Tard was also a standout performer following a strong earnings report.

In addition to declines in the Energy sector, gold miners and telecom service providers also fell sharply, partially offsetting strength experienced elsewhere in the ETF. 

The portfolio made no significant changes during the month.

Outlook | Strategies focus on stable, lower risk portfolio of Canadian equities | Market turbulence expected to persist | Low-volatility profile may be timely for conservative investors.

Harvest Premium Yield Canadian Bank ETF

Banks heavily outperformed the border TSX which was flattened for month on June , contributing positively to HPYB, . Canadian bank stocks continued to perform well, generally navigating through earnings in a positive way.

All banks were positive in the month. Overall, the ETF continued to take a more defensive stance, focusing on selling downside puts, to both generate tax-efficient income, as well as potentially buy bank equities at lower prices in a sustained and remarkable rally without much pullback. This strategy is enabling investors to generate attractive income, while taking a more risk-mitigated approach to bank equity in the short term.

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

Harvest Premium Yield Enhanced ETF

Overall equities took a breather in June, which were dragged down by a selloff in the Technology sector, as well as in the Telecom sector, after fears escalated about SpaceX becoming a competitor.

HPYE underweight in Technology and overweight in Industrials and Healthcare were positive outcomes for the Fund.

Top contributors on the month included Applied Materials and Palo Alto Networks (which both overrode the rest of weak tech exposure), GE, AbbVie, and Caterpiller.  Exxon (on falling crude prices), Oracle, Meta and Broadcom detracted over the period. 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 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 rose on a total return basis in June.  There was a short rally in yields across the curve to start the month. Growing signs of further deescalation in the Middle East caused investors to reassess their outlooks for inflation.  Meanwhile, incoming U.S. 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.  As a result, the U.S. Treasury curve experienced a modest flattening move, with yields at the long end of the curve flat-to-falling slightly, while shorter term yields rallied.

Both ETFs use an active covered call strategy to generate income from exposure to bond market volatility, helping investors offset inflation and deliver higher real yields than traditional fixed income.

Outlook | HPYT/HPYM offer high cash flows from writing covered calls I Macro backdrop has been challenging for longer dated yields I Flexible covered call strategy helps generate cash flows.

Harvest Diversified Monthly Income ETF

Harvest Diversified Equity Income ETF

HDIF and HRIF delivered solid positive returns in June, equities continued to surge given calming geopolitical tensions, and particularly a re-acceleration of the AI/Technology investor sentiment. HDIF and HRIF benefitted from this market trend through several vehicles.  Return contribution was led by HTA (Harvest Tech Leaders Income ETF), HBF (Harvest US Equity Leaders ETF) and HHIH (Harvest High Income Equity Shares ETF). On the other hand, HUBL (Harvest US Bank Leaders Income ETF) detracted from return.

The ETFs made no significant changes in the month.

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

Harvest Balanced Income & Growth ETF

Harvest Balanced Income & Growth Enhanced ETF

HBIG and HBIE were positive on the month with equity markets generally characterized by selling technology and AI-related themes stocks and buying into other areas of the market.  HBIE and HBIG benefitted from the rotation in equities to some degree via strong returns in HIND (Harvest Industrial Leaders Income ETF) and HUBL (Harvest U.S. Bank Leaders ETF).  Fixed income markets also rallied modestly after continued progress in ending hostilities in the Middle East led to a decline in oil prices and some reprieve for inflation concerns.  HPYM (Harvest Premium Yield 7 – 10 Year Treasury ETF) and HPYT (Harvest Premium Yield Treasury ETF) also contributed positively to the ETF’s returns.  Positions in HBF (Harvest U.S. Equity Leaders ETF) and HHIH (Harvest High Income Equity Shares ETF) fell 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 fell lower in June. Similarly, HGGG also declined in June, with its decline much larger compared to gold prices.

While the US-Iran peace deal is still very fragile, it is holding for now and that leaves market participants comfortable enough to reduce their need for geopolitical risk premiums for now. Additionally, the hawkish Federal Reserve positioning has pushed interest rate expectations higher, with markets now fully pricing in one hike in 2026 and a decent chance of a 2^nd hike by year end as well.

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.

Nonetheless, 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. However, 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 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 rose sharply in June as signs of a sustainable end to hostilities in the Middle East led to a decline in oil prices and a reevaluation of the prospects for global travel.  Airline stocks rallied strongly as expectations for an improvement in demand for air travel and lower costs for airlines from a decline in fuel prices led to a reassessment of profitability for the industry.  Shares of Viking and Royal Caribbean Cruises also rallied strongly on these catalysts.  The ETF also benefitted from strong performance in AirBnB, Bookings Holdings and Expedia Group, which carry significant weights in the portfolio.  Declines in shares of Wynn Resorts and Las Vegas Sands declined during the month, partially offsetting these gains, as concerns about Macau gaming revenues weighed on the companies.

TRVL offers diversified exposure to top travel stocks.

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

Harvest Clean Energy ETF

After catching wind in May, on the back of the attractiveness of the growth style and risk-on behaviour, Clean Energy stocks reversed all those gains in June. Some of the drivers in the ETF:

• • The peace deal with US-Iran, while fragile, is still holding and has caused crude oil prices to fall back to pre-war levels, and that has removed some of the short-term trade in Renewables as an alternative to high oil prices.
  • The Renewable Energy Equipment & Services clearly led the way lower after leading the way higher in May – names like Plug Power, Eos Energy, and Enphase were the hardest hit, but the losses were broad across the sub-category
  • The Renewable Power Generation names were down more marginally in comparison, but a few names like China Longyuan Power, Ormat Technologies, and Orsted took a bigger hit
  • Long-term clean energy demand appears to be underpinned by global climate goals that would still require accelerated investment.

HCLN holds the 40 largest dedicated clean energy and equipment firms, equally weighted and diversified across North America, Europe, and Asia.

The ETF will be reconstituted and rebalanced this month.

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

Harvest Low Volatility Canadian Equity ETF

HVOL posted a positive return in June, outperforming the TSX. Most Canadian equities continued to experience strong returns, however signs of a more sustainable end to hostilities in the Middle East drove oil prices lower, weighing on Energy sector performance.  Bank stocks continued to surge in June, with the Big Six all experiencing high single- or low double- digit returns.  Alimentation Couche-Tard was also a standout performer following a strong earnings report.

In addition to declines in the Energy sector, gold miners and telecom service providers also fell sharply, partially offsetting strength experienced elsewhere in the ETF.

The portfolio made no significant changes during the month.

Outlook | Strategies focus on stable, lower risk portfolio of Canadian equities | Market turbulence expected to persist | Low-volatility profile may be timely for conservative investors.

Blockchain Technologies ETF

HBLK declined in June amid a broad selloff in digital assets. Bitcoin fell approximately 20% during the month, its weakest monthly performance since 2022. Meanwhile, spot Bitcoin ETFs recorded significant net outflows.

Robinhood Markets (HOOD US) held up better than the broader portfolio after completing its acquisition of WonderFi Technologies on June 1, owner of Canadian crypto platforms, marking the company’s formal entry into the Canadian crypto market.  The company also announced a significant restructuring action during the month that acted as a further catalyst for the stock.

Circle Internet Group (CRCL US) was a notable detractor, declining sharply after a competing stable coin backed by several major financial and payments firms was announced, and following a Federal Reserve proposal on stablecoin issuer rules under the GENIUS Act.

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

Harvest Bitcoin Leaders Enhanced Income ETF

HBTE declined sharply in June as Bitcoin fell approximately 20% during the month — its weakest monthly performance since 2022 — amid heavy institutional outflows from spot Bitcoin ETFs. Given the ETF’s focus on companies exposed to the Bitcoin ecosystem, several positions in the portfolio also fell sharply during the month in sympathy with the cryptocurrency. CleanSpark (CLSK US) was a notable detractor. The Bitcoin miner regularly sells a portion of its monthly production to fund operations, leaving the stock closely tied to Bitcoin’s price given its largely unhedged treasury position.  Shares of Strategy Inc. also fell sharply during the month after the company announced sales of some Bitcoin assets.

Robinhood Markets (HOOD US) partially offset losses elsewhere in the portfolio The stock rose after completing its acquisition of WonderFi Technologies, owner of Canadian crypto platforms, on June 1, marking the company’s formal entry into the regulated Canadian crypto market. The company also announced a significant restructuring action during the month that acted as a further catalyst for gains in the stock.

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

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

Harvest Bitcoin Enhanced Income ETF

HBIX provides indirect, levered exposure to Bitcoin through investment in the iShares Bitcoin Trust ETF (IBIT US). The ETF declined sharply in June driven by the combined effects of:

1. 1. Bitcoin, and by extension IBIT, fell roughly 20% during the month — its weakest monthly performance since 2022 
   2. Partially offset by depreciation in the Canadian Dollar relative to the US Dollar, which weakened to a one-year low amid a hawkish Federal Reserve outlook, and
   3. The covered call strategy, which continued to generate cash flow from the sale of call options.

Outlook | The near-term outlook for HBIX remains closely tied to the direction of Bitcoin prices, which are likely to remain volatile as investors assess evolving macroeconomic conditions, institutional flows, and risk appetite following a period of significant outflows from spot Bitcoin ETFs | Periods of consolidation are common following strong advances, the longer-term investment thesis remains supported by growing institutional participation, continued adoption of spot Bitcoin investment vehicles, and increasing recognition of Bitcoin as a distinct asset class |The ETF’s leverage and covered call strategy remain positioned to amplify Bitcoin’s price moves in both directions while generating option premium income to help offset a portion of that volatility.

Harvest Diversified High Income Shares ETF

HHIS fell in the month of June, as rotation amongst sectors resulted in declines in many of the momentum leadership names that have led since the March lows.  Performance was negatively impacted by declines in PLTE (invests in Palantir), MSHE (invests in Microsoft) and AVGY (invests in Broadcom).  This was partially offset by strong returns from investments in AMDY (invests in AMD), LLHE (invests in Eli Lilly) and CRWY (invests in CrowdStrike).

A position in SPXE (invests in SpaceX) was added to the portfolio in June, and a position in NFLY (invests in Netflix) was eliminated.  Additionally, minor adjustments were made to other positions during the month, trimming some winners such as AMDY on strength, while deploying proceeds to some lesser weights in the portfolio.

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

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

Harvest Canadian High Income Shares ETF

Easing tensions in the Middle East and signs of a sustainable end to hostilities leading to a decline in the energy sector while moderating inflation fears also weighed on gold during the month. Overall, this weighed negatively on HHIC. Specifically, positions in Agnico Eagle, Suncor Energy and Canadian Natural Resources fell during the month.  A broader market rotation that led to declines in many AI-related leaders also negatively impacted shares of Cameco in June.  Canadian banks continued to rally in the month, with the ETF’s positions in Royal Bank of Canada and Toronto Dominion Bank partially offsetting declines in other areas.

Option premiums were well supported. Income generation through covered calls writing remained at around 33% write-level across. There were no significant changes to HHIC composition during the month.

Outlook | HHIC continues to offer diversified, enhanced income exposure to a portfolio of notable Canadian equities.

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.