Monthly ETF Commentary

June 2026

“Sell in May? No way!”

That was our thesis last month as we entered the month of May. It turns out that the market also missed the memo to sell. The S&P 500 rallied over 5% in May, extending the powerful recovery that started in April. Its closing price once again hit an all-time high. The end of May marks two consecutive months of gains after March’s war-driven correction.

The Canadian market was also the beneficiary of positive momentum in the month of May. Indeed, the S&P/TSX Composite Index moved up 2.37%. Sectors leaders for the month includes communication services, materials, financials, utilities, and technology, while healthcare, energy, and consumer staples were laggards.

Earning momentum and tech dominance

Earnings season through the spring provided real comfort. Roughly eighty percent of S&P 500 companies performed better than analysts have expected. That is well above the ten-year average. Many of the top companies delivered strong guidance, rising profit margins, and full-year 2026 earnings growth forecasts continued to move higher. The fundamental case for equities remains intact in early June 2026.

One sector continues to do the heavy lifting in the market and that’s technology. It was the standout among the eleven sectors, beating the broader index in the month of May.

Energy gave back gains as geopolitical tensions eased. Reports indicate that Iran and the United States are moving ever-closer to a peace deal that would put an end to the now-three-month Iran-US conflict. In addition, defensive areas of market like utilities and consumer staples lagged in May.

If we step back, we can see over a five-year horizon that there is an over 150% difference between the best and worst performing sectors. The reaction to major news feeds continues to have an outsized impact. Without technology, the market would be negative for the month of May. Over 250 S&P 500 names are sitting more than 25% below their all-time highs.

Signs of broader participation

The Harvest investment team is watching for the flip side at this stage: Any signs of broader participation.

The market may soon see money shift away from expensive, high-flying stocks into cheaper ones that have solid earnings but have not risen much in price yet. That shift would be a good, healthy sign. If this rotation occurs, the moves could be fast, given how wide the gap currently is between these two groups.

The overall advice is to stay cautiously optimistic: Engaged and constructive, but not so relaxed you ignore the remaining risks.

Summary

We reiterate this is a time to be constructive, not complacent.

Inflation is very slow in coming down, and its not just from rising oil prices. Tariffs are now showing up in the cost of apparel and furniture. Meanwhile, the Big Beautiful Bill is rattling bond markets, with the 10-year flirting with these inflationary effects.

In this environment, the barbell does not change. Equal-weight growth exposure in technology, dividend-quality focus in Canada, and high-income defensive positions on the other side. For our insights on the Harvest barbell strategy, click here. Any volatility is an opportunity to add at this stage.

That is the framework, and we are standing firm on it going into the summer season.

Harvest Healthcare Leaders Income ETF

During May, HHL and the broader healthcare sector emerged as the market’s third best-performing sector. While it delivered solid results, it trailed the top-performing technology sector, which was propelled by intense AI-driven momentum and widespread macro-optimism surrounding a potential resolution to the conflict in the Middle East.

The healthcare sector was driven by localized, stock-specific events rather than broad sector tailwinds. This resulted in wide performance dispersion across subsectors and contributed to elevated volatility during May.

Within the HHL portfolio, the subsector performance was mixed. In the area of Life Sciences and Diagnostics, Agilent Technologies delivered strong positive performance following a favorable earnings update. In the large-cap pharmaceutical space, Eli Lilly maintained its upward trajectory, supported by market expectations surrounding its product pipeline and projected cash flow generation. Conversely, the medical technology subsector lagged; while select medical device holdings remained stable, Boston Scientific fell after management revised 2026 growth expectations for the company’s key WATCHMAN product lower.

Outlook | The sector faces short-term rotational headwinds relative to the technology sector and policy-related uncertainty, but its long-term thematic drivers remain steady. The demand for healthcare along with its services continues to be supported by structural demographic trends, including aging populations, expanding healthcare access in developing nations, and ongoing technological and biological innovation.

HHL invests in 20 large-cap healthcare leaders, has an active covered call strategy, and pays a monthly distribution of $0.06 per unit as at May 29, 2026.

Harvest US Equity Leaders Income ETF¹

HBF ended the month higher buoyed by the continued rally in US.  Effective April 22, the Fund’s name was changed from Harvest Brand Leaders Plus Income ETF to Harvest US Equity Leaders Income ETF.  Factors that impacted the ETF’s investments during May included:

• • Strong gains in the technology sector continued to propel markets higher, but veiled a significantly narrower advance than in April with only two other market sectors, consumer discretionary and health care, ending the month in positive territory
  • Investor demand for stocks levered to artificial intelligence spending continued to drive significant gains across the technology sector, with many names up mid to high double-digit percentages during the month. Returns in shares of Oracle Corp. and Cisco Systems were particularly strong.
  • Stocks in the energy sector continued to correct in May, as investors positioned for an end to the conflict in the Middle East, with the Fund’s position in Shell PLC falling modestly.
  • Shares of Walmart Inc. fell during the month after the company gave an earnings outlook that disappointed investors

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

Harvest Tech Leaders Income ETF²

HTA climbed sharply in May, amid investors’ continued rush to gain exposure to the AI theme.  Effective April 22^nd, the Fund’s name was changed from Harvest Tech Achievers Growth & Income ETF to Harvest Tech Leaders Income ETF.

Hardware stocks, those companies typically benefitting from spending on AI infrastructure, continued to rise during May. In addition, a late month rally in software stocks led to significant rebounds in portfolio holdings like Palo Alto Networks, ServiceNow Inc. and Oracle. Semiconductor stocks continued to perform well, with data storage-linked providers, like Micron Technology and Seagate Technology Holdings extending recent gains.

Arista Networks and Intuit both fell during the month following disappointing earnings reports that failed to meet elevated expectations.

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

• • Despite the constant back and forth in the media regarding the US-Iran negotiations, the market seems to have reverted to risk-on behaviour leaving a defensive sector like Utilities to struggle
  • Canadian Telecoms performed quite well during May, along with steadier performance in the Canadian Energy Pipeline stocks, and both these areas were a contributor to offsetting broader losses in the Utilities
  • Long bond yields were also a headwind to more positive returns as they crossed over the 5% mark on the 30-year benchmark during the month
  • The AI boom remains, which highlights growing electricity demand, offering a medium-term tailwind for a sector that tends to be low growth – this has applied to energy pipelines as well, especially those with natural gas exposure for US data center demand needs

Harvest REIT Leaders Income ETF⁴

HGR ended slightly up on the month, outperforming the small decline in the Global 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. Some of the more specific drivers of underlying performance during the month included:

• • The beaten down Real Estate sectors seemed to bounce back in a bigger way this month. Unite Group in the student housing space saw double digit gains. The Diversified Healthcare REITs, including Healthpeak and Alexandria, also saw strong gains.
  • Not having exposure to the multi-asset, development, conglomerate type real estate companies, mostly in Japan, also added to outperformance against the Global Real Estate market, given the dramatic 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.

The ETF was reconstituted in May, we swapped out Highwoods Properties (traditional office), which was a deep value play with seemingly still declining occupancy levels, and replaced COPT Defense Properties (US defense/military/government office and data center shells). This brings indirect exposure to an area of likely continued spending in intelligence, surveillance, missile defense and space, etc, under the current US administration outlook and trajectory.

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 in May in line with the Benchmark Energy Index given the decline in crude oil prices, which have been very choppy over the past couple months. The notable catalysts for the energy sector:

• • Given the continuous headline driven tennis match between the US and Iran on their negotiations, crude oil prices have been extremely choppy during the month – prices have easily moved up and down ~$25/bbl multiple times given whether negotiation on a deal look optimistic or pessimistic.
  • Previously, the coordinated a planned release of 400 million barrels from the Strategic Petroleum Reserves was to help alleviate some of the short-term supply shortages, and there are coordinated ships passing through the Strait again, but at a much lower rate than prior to the war. But the longer the Strait of Hormuz remains impeded, the longer crude oil prices remain elevated
  • Given the selloff in crude oil, the steadier sub-sectors were skewed to the “defensive” energy pipelines and Refining/Marketing focused companies, while the E&P and Integrated sub-industries saw more broad declines.

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

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

Harvest US Bank Leaders Income ETF

HUBL fell slightly in May, with US Bank stocks consolidating strong gains in April as investors continued to contemplate the inflationary impacts from the Middle East conflict and the resulting effect on interest rate policy at the US Federal Reserve. 

Returns across the banks industry were broadly soft during the month, with shares of Truist Financial and Wells Fargo & Co leading to the downside.  Broad bank weakness was partially offset by strong returns for the ETF’s positions in Capital Markets focused companies Goldman Sachs Group and Morgan Stanely.

HUBL was rebalanced during the quarter.  A position in First Citizens Bancshares was replaced with a position in KeyCorp, while an additional position in Bank of New York Mellon was added, bringing the total number of holdings to 16.

 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 additional gains in May, as Canadian stocks kept pushing further into all-time highs. Some of the main areas to focus on this month include:

• • The Financials, Telecoms and Utilities categories saw the strongest gains during the month, all with decently sizeable weights in HLIF the Telecoms appear to be a bounce from a much weaker April
  • Offsetting some of this, earnings releases in May were not kind toward the stock performance of names in HLIF, such as Thomson Reuters, Restaurant Brands and Nutrien

The ETF focuses on Canada’s top dividend payers, refreshed quarterly. The portfolio’s covered call overlay can help to support stable monthly income in a mixed economic environment.

The ETF will be rebalanced and reconstituted in June.

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 rallied sharply at month end, driven by the market leaning toward the belief in an eventual US-Iran deal, risk-on behaviour, and an eventual decline in crude oil prices from peak – despite the very choppy moves. Travel stocks outperformed the broader market in May but still lagged the stock market performance YTD. Some of the more specific movements during the month:

• • The Airlines soared during the month, given a boost from the final leg down about $20/bbl in crude oil prices during the second half of the month. Cruiselines also fared well, helped by the declining oil narrative.
  • Hotels fared well too, while Casinos saw some positive action on M&A-related activity – but the outlook for the consumer is cautious with the heightened sensitivity to renewed inflation impacts.
  • While the consumer has been more resilient than expected, economic data has been mixed recently, and inflationary concerns remain at the top of the list for consumers

TRVI offers diversified exposure to top travel stocks.

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

Harvest Industrial Leaders Income ETF

Industrial stocks fell slightly in May, consolidating April’s strong advance.  Performance was mixed across the sector with the more economically sensitive areas selling off, while Aerospace and Defense was modestly positive.  Passenger Airlines were standout positive performers as investor optimism for a deal to end the Middle East conflict led to a fall in oil prices, pushing up expectations for airline profit margins.  Currency had a modestly positive impact on the Fund’s performance after a rally in the US Dollar relative to the Canadian Dollar. 

Shares of Deere & Co fell following a disappointing outlook by the company, while shares of GE Vernova also pulled back following strong performance in April.  Declines were partially offset by strong returns in Delta Air Lines Inc., and General Electric.

HIND maintains its covered call strategy for added income while remaining positioned to benefit from renewed industrial sector momentum.  The ETF will be rebalanced during the month of June.

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 modestly positive return in May, just behind the TSX return. Overall equities continued to surge given calming geopolitical tensions, and particularly a re-acceleration of the AI/Technology investor sentiment, with the Nasdaq up for the month. While Canadian returns were more modest, the strategy captured strong momentum in Financials, led by continued strong trends in the Canadian banks which reported later in the month. Also contributing were CN Rail and CP, which delivered strong performance.  Detracting from relative performance was the strategy’s underweight to Mining & Metal companies, which were strong in the month.

The portfolio made no significant changes during the month.

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

Harvest Premium Yield Canadian Bank ETF

Canadian bank stocks continued to perform well, with the sector reporting later in the month. In general earnings were well received as a group, although National and CIBC were down on earnings.

All banks were positive in the month, except for National Bank. BMO and Royal, and TD led the group, with returns of around 9% on the month. In general, 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 should bank prices revert. This strategy is enabling investors to generate attractive income, while taking a more risk-mitigated approach to bank equity in the short term, which may prove beneficial if volatility elevates.

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

Harvest Premium Yield Enhanced ETF

Overall equities continued to surge given calming geopolitical tensions, and in particular a re-acceleration of the AI/Technology investor sentiment.  The rally favoured technology and growth stocks which HPYE broadly participated in.  The equity rally over the month led to the selling of some positions, with proceeds deployed to selling downside puts, to help support the purchasing of equities at more attractive prices.

Top contributors on the month included Palo Alto Networks and Oracle (improving sentiment on AI/data centre build out), Eli Lilly (on obesity-drug optimism), and General Electric. Walmart and McDonalds detracted over the period, with concern on consumer finances, as well as a general market focus on growth stocks. 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

The performances of HPYT and HPYM were flat in May, but we witnessed some  exaggerated moves intra-month. In the first half of the month, long bond yields shot higher through their 5% ceiling, on the back of a failure to reach a successful negotiation with Iran, still high crude oil prices and the growing expectations for inflation to pick up. Front end yields also moved up to reflect the growing confidence by traders that the Fed’s next move would be a rate hike in 2026 and not a rate cut. The higher duration bonds in HPYT were hurt a lot more than the shorter duration bonds in HPYM, causing HPYT to underperform HPYM. However, by month’s end there was a sharp reversal, as the US claimed, almost daily, that they were getting closer to a Memorandum of Understanding about a potential deal with Iran. HPYT closed all underperformance against HPYM to a slight positive on the month. In addition, the ETFs would have been impacted by:

• • The expectations for the Federal Reserve rate cuts have disappeared for 2026 with a greater than 80% chance of a rate hike by end of 2026 — the lingering negotiations to end the Iran War and higher crude oil prices have impacted on higher inflation expectations in bonds
  • Yields overall continue to remain elevated given the still unexpected risk that lingers around what Fed independence looks under the new Kevin Warsh chairmanship, and as Powell bucks the trend and stays on as a Fed Governor.

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 May, equities continued to surge given calming geopolitical tensions, and particularly a re-acceleration of the AI/Technology investor sentiment. HDIF 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, aided by a strong equity rally, but offset by muted fixed income returns. 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). Detracting, or providing little additional return, included fixed income exposures, HPYM (Harvest Premium Yield 7-10 Yr Treasury ETF) and HPYT (Harvest Premium Yield Treasury ETF), as well as HUBL (Harvest US Bank Leaders Income ETF).

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

Harvest Global Gold Giants Index ETF

Gold prices were a touch lower in May, but HGGG was slightly higher on the month. While the US-Iran negotiations are fragile, and daily headlines lob back and forth like a tennis match, the general sense from market participants is that there is hope for a deal. Thus, panic has subsided and the period of intense gold accumulation from 2024 to 2025, has given way to a more mixed picture in 2026.

Gold had 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 be a negative force for gold generally. But when central bank easing actions occur if the economy takes a turn for the worse, gold will generally be one of the first assets to react more positively – especially to actions like overnight rate cuts and stimulus measures.

HGGG invests equally across the world’s 20 largest gold producers, providing leverage to gold price moves and long-term diversification benefits, especially during volatile market cycles.

The ETF was reconstituted with the now larger Coeur Mining entering the Index to replace New Gold Inc, which was acquired and merged with Coeur Mining in March.

Outlook | We await any policy/procedure changes from the new Fed Chair 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 rallied sharply at month end, driven by the market leaning toward the belief in an eventual US-Iran deal, risk-on behaviour, and an eventual decline in crude oil prices from peak – despite the very choppy moves. Travel stocks outperformed the broader market in May but still look lagged the stock market performance YTD. Some of the more specific movements during the month:

• • The Airlines soared during the month, given a boost from the final leg down about $20/bbl in crude oil prices during the second half of the month. Cruise lines also fared well, helped by the declining oil narrative,
  • Hotels fared well too, while Casinos saw some positive action on M&A-related activity – but the outlook for the consumer is cautious with the heightened sensitivity to renewed inflation impacts.
  • While the consumer has been more resilient than expected, economic data has been mixed recently, and inflationary concerns remain at the top of the list for consumers

TRVL offers diversified exposure to top travel stocks.

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

Harvest Clean Energy ETF

Regulated utilities companies struggled in the month of May. However, higher-growth clean energy names in HCLN performed better. That pushed clean energy stocks to outperform even against a very strong risk-on stock market. Some of the drivers in HCLN:

• • Clearly, there has been some renewed interested in Renewables given the high price of oil in the fallout from the Iran War
  • The Renewable Energy Equipment & Services led the way higher with a clear trend in the market to Growth stocks, and many of the Renewable Energy companies can be tied to the AI-growth buildout – names like T1 Energy and Enphase Energy were up on the month, while SolarEdge, Shoals Technologies and Fluence Energy saw big buying
  • The Renewable Power Generation names were not quite as aggressive to the upside as many of the Renewable Energy Equipment & Services companies, but we still saw strong gains from the likes of Ormat Technologies, ReNew Energy, and Metlen Energy.
  • 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.

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 modestly positive return in May, just behind the TSX return. Overall equities continued to surge given calming geopolitical tensions, and particularly a re-acceleration of the AI/Technology investor sentiment. While Canadian returns were more modest, the strategy captured strong momentum in Financials, led by continued strong trends in the Canadian banks which reported later in the month. Also contributing were CN Rail and CP which delivered strong performance.  Detracting from relative performance was the strategy’s underweight of the Mining & Metal companies, which were strong in the month.

The portfolio made no significant changes during the month.

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

Blockchain Technologies ETF

HBLK generated positive returns in May despite mixed performance across the broader digital asset equity universe. While certain Bitcoin treasury and transaction-oriented businesses faced periods of consolidation, the portfolio benefited from strength in digital infrastructure, blockchain computing, and AI-enabled data center operators. This divergence highlights the increasingly differentiated nature of the blockchain ecosystem, where infrastructure-focused companies are being driven by a broader set of growth catalysts beyond digital asset prices alone.

Key Performance Drivers

Hut 8 Corp. (HUT US) was among the strongest contributors during the month. Investor sentiment improved following the company’s first-quarter results and continued progress toward expanding its high-performance computing and AI infrastructure business. The market responded positively to management’s execution of its broader strategy beyond traditional digital asset mining.

Keel Infrastructure Group (KEEL US), formerly known as Bitfarms, also contributed positively. The company’s transition toward a broader digital infrastructure model continued to attract investor attention, with the rebrand reinforcing management’s strategic focus on high-performance computing, data center development, and AI-related infrastructure opportunities. The name change reflects an evolution in business strategy, highlighting the growing convergence between blockchain infrastructure and next-generation computing.

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 companies building the infrastructure that underpins these secular growth themes.

Harvest Bitcoin Leaders Enhanced Income ETF

During May, HBTE and the digital asset equity ecosystem experienced downward pressure that contrasted with traditional equity markets. While the broader S&P 500 and the technology sector sustained upward trajectories, the digital asset ecosystem faced localized capital decompression. This macro headwind resulted in a challenging month for core Bitcoin-treasury and transactional infrastructure assets, though physical Bitcoin mining infrastructure decoupled positively based on network computing expansions.

Performance drivers across the portfolio’s core Bitcoin-adjacent subsectors reflected this divergence. Within the transactional and corporate balance sheet segments, holdings faced a general retrenchment. Crypto exchange operator BLSH US declined over the period as monthly transaction volumes adjusted, while Coinbase Global Inc. (COIN) remained essentially flat. Corporate Bitcoin treasury leader MicroStrategy Inc. (MSTR) mirrored this softer sentiment, declining ~10% as its equity premium consolidated following a prolonged period of aggressive capital appreciation and direct Bitcoin acquisition.

Conversely, the physical Bitcoin network infrastructure and hardware mining subsector provided a significant positive offset. Iris Energy (IREN) experienced a substantial breakout, rising during May. This momentum was heavily supported by expanding operational hash rates, efficient post-halving power fleet deployments, and intensifying market interest in how institutional-scale Bitcoin mining data centers are securing long-term power contracts to scale their primary cryptographic computing capacity.

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 the iShares Bitcoin Trust ETF (IBIT US). The ETF experienced moderate decline in May and ended the month down ~7% m/m on a total return basis. Performance for HBIX was driven by the combined effects of 1) IBIT US ending the month down ~9%, 2) partially offset by CAD depreciation, and 3) the covered call strategy that enabled premium capture.

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 and risk appetite. While 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 covered call strategy remains positioned to generate option premium income while helping offset a portion of market volatility.

Harvest Diversified High Income Shares ETF

HHIS surged 13.6% in the month of May, surpassing the S&P 500, and slightly ahead of the Nasdaq-100 as Technology stocks continued to perform exceptionally well. Overall equities continued to surge given calming geopolitical tensions, and particularly a re-acceleration of the AI/Technology investor sentiment, with the Nasdaq up 12% in the month.  The rally favoured cyclical and growth stocks which led to HHIS performing well with its focus on higher-growth and Technology focus. Positive contributors for HHIS included AMDY (invests in AMD), CRWY (invests in CrowdStrike), and LLHE (invests in Eli Lilly), with strong performance in Technology being a key driver. The main detractors for HHIS in the period were NFLY (invests in Netflix), COSY (invests in Costco).

HHIS made minor adjustments 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 US stocks.

Harvest Canadian High Income Shares ETF

For May, HHIC benefited from the market’s positive overall performance. The TSX was up 2.5% for the month. Canadian equities continued to be led by Financials (Banks) as well as Metal and Mining companies performed well on the month. 

Positive contributors for HHIC included TD Bank and RBC, which delivered strong quarterly results, as well as BCE.  The Energy sector took a step back after strong gains earlier in the year, with Canadian Natural Resources, Suncor and Cameco underperforming. The corresponding single stock ETFs that benefitted the most over the month were TDHE, RYHE, and BCEE, with CNQE, SUHE and CCOE detracting.

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

Outlook | HHIC continues to offer diversified, enhanced income exposure to a portfolio of notable Canadian equities. The Harvest single stock ETFs based on the stock names in HHIC offer a more concentrated exposure and are designed to provide high monthly income.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest 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.