Harvest expands listing with launch of two income ETFs

One product, a Canadian first, aims to give unit holders significant monthly income

Harvest expands listing with launch of two income ETFs

The initial offering of Class A Units of the Harvest Travel & Leisure Income ETF and the Harvest Diversified Equity Income ETF has been completed, according to Harvest Portfolios Group Inc.

The Class A Units of the Harvest Travel & Leisure Income ETF will begin trading on the TSX under the ticker symbol TRVI, while the Class A Units of the Harvest Diversified Equity Income ETF will do so under the ticker symbol HRIF. The securities regulatory bodies in each of Canada's provinces and territories have given their approval to these two ETFs.

Through a broad index portfolio of airlines, cruise lines, hotels, resorts, casinos, and online booking services, TRVI captures the travel & leisure sector. The use of an active and adaptable covered call option writing approach generates a high monthly income distribution.

“TRVI like TRVL is a first in Canada, offering exposure to the lucrative travel and leisure market with the addition of an attractive monthly income generating portfolio” said Michael Kovacs, President and CEO of Harvest ETFs.

The ETF's first target yield is 10.4% upon launch. The record date for the first monthly payout is May 31, 2023, and the payment date is June 9, 2023.

The Solactive Travel & Leisure Index GTR, which includes the 30 most valuable travel and leisure-related firms listed in North America, is the index that TRVI follows. The Harvest Travel & Leisure Index ETF, the first Canadian ETF to only capture the performance of this index, was introduced in 2021.

“The travel and leisure industry has long-term structural demand drivers, such as retiring baby boomers, and millennials that are entering their peak earnings years. We saw those when we launched TRVL in 2021. Now TRVI offers investors access to those same tailwinds, with the addition of high monthly income earned through Harvest ETFs’ active and flexible covered call option strategy,” Kovacs said.

HRIF is a balanced portfolio of Harvest Equity Income ETFs that uses an active and adaptable covered call option writing method to increase distribution yield. The ETF will begin trading with an initial target yield of 8%, and it will have a record date of May 31 and a payment date of June 9, 2023.

HRIF will not employ leverage, providing access to the same well-liked diversified portfolio of equity income ETFs without the additional risk associated with leverage, as opposed to the Harvest Diversified Monthly Income ETF, which was introduced in 2022 and uses a leverage component at about 25%.

“HRIF gives Canadians access to high monthly income from a portfolio of ETFs, each of which hold leading global businesses,” Kovacs said. “They get that high income, and exposure to those businesses, without any additional leverage. We’re pleased to offer this strategy to investors and advisors who see the value of owning great businesses and earning covered call option income without the use of leverage.”