The unique ETF aims to give Canadian investors a diversified monthly income alternative
Harvest Portfolios Group has announced the inaugural offering of Class A Units of the Harvest Canadian Equity Income Leaders ETF, which was completed on June 6, 2022 in accordance with a prospectus submitted to securities regulatory authorities in all Canadian provinces and territories.
The Harvest Canadian Equity Income Leaders ETF's Class A Units has begun trading on the TSX under the ticker name HLIF.
This unique ETF aims to give Canadian investors a diversified monthly income alternative.
The investment objectives of HLIF are to provide Unitholders with monthly cash distributions; the opportunity for capital appreciation; and lower overall portfolio volatility than would be experienced with directly owning equity securities of the Canadian Equity Income Leaders Issuers.
The Harvest Canadian Equity Income Leaders ETF will normally write covered call options on up to 33% of the portfolio holdings to reduce overall portfolio volatility. Market volatility and other factors may influence the amount of covered call option writing.
HLIF now anticipates paying a monthly distribution of $0.0583 per unit beginning with a July 29, 2022 record date and an August 9, 2022 payment date, based on current market circumstances as determined by Harvest.
"HLIF adds a vital Canadian component to our lineup of Equity Income ETFs" said Michael Kovacs, President and CEO of Harvest. "HLIF offers a portfolio of Large Cap equally weighted dividend paying Canadian equities combined with our proven Option writing strategy to deliver attractive steady monthly income initially targeted at 7% annually that many Canadian investors require in the current interest rate environment."