Harvest unveils international sector ETFs

The funds come with covered-call option features to achieve lower return volatility

Harvest unveils international sector ETFs
Harvest Portfolios has completed the initial offering of class A units of its Harvest Global Resource Leaders ETF (TSX: HRES), as well as class A and class U units of the Harvest US Bank Leaders Income ETF (TSX: HUBL and HUBL.U).

“The launch of these two ETFs expands Harvest's ETF family to eight and is in keeping with our belief in the long term growth of capital through equity ownership,” said Harvest President and CEO Michael Kovacs. “We are excited about the opportunities in the resource sector through the direct correlation to a growing world economy, and US Financials with the positive growth dynamics that are presently occurring and projected to continue.”

Celebrating our industry successes in the wealth management industry

HRES aims to provide unitholders with quarterly cash distributions and the opportunity for capital appreciation. In comparison, HUBL and HUBL.U aim to provide unitholders with monthly cash distributions, the opportunity for capital appreciation, and lower overall portfolio return volatility than would be expected from direct ownership of US bank leaders’ equity securities.

HRES, HUBL, and HUBL.U will seek lower overall volatility of portfolio returns by selectively writing covered-call options on up to 33% of their respective portfolios’ securities. The management fee for all three ETFs is 0.75%, and all are eligible for RRSPs, RRIFs, RESPs, and TFSAs.

Related stories:
Evolve targets active blockchain ETF
Vanguard Investments Canada reveals new asset-allocation ETFs