The Harvest Diversified High Income Shares ETF | June 2025 Commentary

The Harvest Diversified High Income Shares ETF (HHIS:TSX) now stands at over $400 million in total assets under management following its debut in January 2025. It offers access to a diverse portfolio of Harvest Single stock ETFs that invest in trending companies with strong upside potential.

As of May 30, HHIS’ portfolio was broken down as follows:

Source: Harvest Portfolios Group, Inc. May 2025.

The market rollercoaster swung upward in the month of April 2025, and May managed to build on that momentum. Mixed economic data in the form of The lower Philly Fed index and lagging consumer confidence gave investors pause. Several top stocks to which HHIS have exposure were beneficiaries of this continued momentum. Meanwhile, others are looking to gain momentum in the summer.

Source: Bloomberg, Harvest ETFs, as of May 30, 2025.

Looking at May market momentum

The S&P 500 Index rose 6.3% in May 2025, and the NASDAQ 100 Index rose 9.1%. This improved market performance was sustained due to positive tailwinds in equity markets from the month of April. Most of the Harvest High Income Shares ETFs were positive for May, with the exceptions of the ones that invest in Eli Lilly and MicroStrategy.

The top three High Income Shares ETFs with positive outcomes were the Harvest Broadcom Enhanced High Income Shares ETF (AVGY:TSX) and Harvest Nvidia Enhanced High Income Shares ETF (NVHE:TSX), both of which holdings  benefited from a recovery in market sentiment with regards to semi-conductors. Rounding out the top three was the Harvest Tesla Enhanced High Income Shares ETF (TSLY:TSX), which benefited from a resurgence of interest in the Telsa stock.

On the negative side, the Harvest MicroStrategy Enhanced High Income Shares ETF (MSTE:TSX) dipped marginally, impacted by Bitcoin limping into late May. The Harvest Eli Lilly Enhanced High Income Shares ETF (LLHE:TSX) declined in May, as woes in the health care sectored negatively impacted Eli Lilly and others.

The Harvest Diversified High Income Shares ETF (HHIS:TSX), which holds a total of 14 Harvest enhanced single stock ETFs, including those mentioned above, also recorded strong positive upside  over the same period.

Despite compressed volatility that followed a more turbulent April, option premiums remained elevated. They were also buoyed by rising underlying equity cases. Option writing levels have remained on target, and within the modest range around 33% across the High Income Shares suite.

Summary

The HHIS ETF is nearing a half billion in total AUM as we move into the summer months. That reflect rapid and growing investor interest at this early stage.

HHIS offers diversified exposure to the single stock ETFs that target high income and growth potential. The HHIS’s underlying ETFs all use modest leverage of 25% to enhance income and potential growth.  For the month of May, HHIS benefited most from the upside of the underlying ETFs that invest in shares of Broadcom, NVIDIA, and Tesla. These companies benefitted from renewed optimism in semiconductors and technology. MicroStrategy and Eli Lilly, on the other hand, dipped due to weakness in Bitcoin and healthcare, respectively.

HHIS maintained its portfolio composition. Its price has been stable, and it continues be supported by the underlying ETFs write-level of   at around 33%, which aligns with its mandate of low turbulence and income generation.

Disclaimer

Commissions, management fees and expenses all may be associated with investing in Harvest High Income Shares ETFs managed by Harvest Portfolios Group Inc. (the “Funds” or a “Fund”). 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.