By Ambrose O’Callaghan
The technology sector has proven to be an explosive source of growth for investors in the first half of the 2020s. This has continued from the trend we saw over the course of the 2010s, which saw the market owing much of its growth to the burgeoning technology space. It stands to reason that investors will be hungry for exposure to this exciting market right now. The Harvest Tech Achievers Growth & Income ETF (HTA:TSX) stands as a premier option for investors eager for technology exposure and high income every month.
What are the reasons to snatch up this high performing tech ETF today? Let’s jump in.
HTA offers exposure to the world’s top tech companies
The Harvest Tech Achievers Growth & Income ETF targets dominant players in the technology space, an innovation-led mega sector. Large Cap technology companies have dominated not just the sector itself, but the entire US market in 2023 and in the first half of 2024. That has made this sector, and this ETF, a strong source of growth for those that have sought exposure.
HTA invests in some of the biggest names in the industry that are pushing the boundaries of technology. On June 5, 2024, Nvidia Corporation, a holding in HTA has passed Apple – another holding in HTA – as the second-most valuable public company in the United States, behind only Microsoft.
The growth story for Nvidia lies in its crucial role in powering new artificial intelligence technologies. Generative AI refers to artificial intelligence that can generate text, images, videos, or other data using generative models. This is in response to user prompts. Nvidia’s chips, which were traditionally used for platform gaming, is now relied on by organizations at the forefront of this technological innovation.
HTA has sought to harness the growth potential of generative AI by holding Nvidia and other exciting tech players in this fast-growing space.
This tech ETF has been a high performer year after year
In November 2023, HTA.U was awarded with an LSEG Lipper Award for Best Sector Equity Fund Over 5 Years. Units of HTA have climbed 10.9% in the year-to-date period as at May 31,2024, 29.7% 1-year, 13.1% 3-year, and 20.5% 5-year. HTA has delivered annualized growth of 15.5% since its inception date.
Investors get high income every month from HTA
Harvest equity income ETFs seek to deliver high income, every month to unitholders. HTA has succeeded in delivering top tier growth in the tech ETF space while also generating high monthly income.
In 2023, HTA increased its monthly cash distribution to $0.1200 per unit. That represents a current yield of 7.93% as at June 5, 2024. The class A units of HTA have paid out total cash distribution of $7.8311 per unit since inception.
Investors who are hungry for even higher monthly income and growth opportunities should consider the Harvest Tech Achievers Growth & Income Enhanced ETF (HTAE:TSX). This ETF is designed to deliver enhanced income and growth opportunities by applying modest leverage to an investment in HTA. Units of HTAE have climbed 12.5% year-to-date as at May 31, 2024, 35.3% 1-year, and 47.3% since inception. Meanwhile, HTAE has delivered a monthly cash distribution since its inception in October 2022. That started with a monthly cash distribution of $0.1063 which was increased to $0.1300 per unit in September 2023. That represents a current yield of 9.49% as at June 6, 2024.
Disclaimer
Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds (managed by Harvest Portfolios Group Inc.). Please read the relevant prospectus before investing. 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. 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 content of this article is to inform and educate and therefore should not be taken as investment, tax, or financial advice.
