Harvest launches new ETFs on TSX

Harvest announces the trading start for three new ETFs, aiming to offer high monthly distributions and capital appreciation

Harvest launches new ETFs on TSX

Harvest ETFs (Harvest) has successfully completed the initial offering of Class A Units for three of its ETFs as detailed in a prospectus.

These offerings have been filed with the securities regulatory authorities across all Canadian provinces and territories.

Starting today, the Class A Units of the Harvest Balanced Income & Growth ETF, Harvest Balanced Income & Growth Enhanced ETF, and Harvest Industrial Leaders Income ETF will begin trading on the Toronto Stock Exchange under the ticker symbols HBIG:TSX, HBIE:TSX, and HIND:TSX respectively.

In terms of distributions, HBIG is set to pay a monthly distribution of $0.16 CAD per Class A Unit, with the first payment scheduled for around May 9, to unitholders of record as of April 30.

HBIE will distribute $0.20 CAD per Class A Unit monthly, also with the first distribution expected on or about May 9. HIND will start its monthly distributions at $0.07 CAD per Class A Unit, with the first payment to be made on or about June 7.

Michael Kovacs, president and CEO of Harvest, expressed enthusiasm about the new ETFs: “Harvest is pleased to introduce the first high income generating Balanced ETF in Canada primarily focused on utilizing covered calls.”

He added that HBIG and HBIE are designed to offer “consistent monthly cash distributions while seeking to deliver steady returns through a balanced mix of Equity and Fixed Income ETFs.”

Meanwhile, HIND aims to provide access to the diversified industrial sector with attractive, consistent monthly cash distributions, employing a covered call strategy to manage portfolio volatility.

Investment Objectives:

  • HBIG aims to provide unitholders with high monthly cash distributions and capital appreciation opportunities through a non-levered investment in exchange traded mutual funds listed on recognized North American stock exchanges. These funds target large capitalization equity securities, investment grade bonds, or money market instruments issued by corporations or governments, and include funds that engage in covered call strategies.
  • HBIE seeks similar objectives to HBIG but does so on a levered basis, aiming to replicate the portfolio of the Harvest Balanced Income & Growth ETF to the extent reasonably possible.
  • HIND focuses on providing unitholders with capital appreciation, monthly cash distributions, and reduced portfolio volatility compared to directly owning Equity Securities of Industrial Leaders. It achieves this by writing covered call options on up to 33 percent of the portfolio securities, adjusting based on market volatility and other factors.