Harvest Portfolios Group Inc. announced Aug. 2 that it has filed a preliminary prospectus with Canadian securities regulators for five new exchange traded funds.
The new ETFs are: the Harvest Healthcare Leaders Enhanced Income ETF (HHLE), Harvest Brand Leaders Enhanced Income ETF (HBFE), Harvest Tech Achievers Enhanced Income ETF (HTAE), Harvest Equal Weight Global Utilities Enhanced Income ETF (HUTE) and Harvest Canadian Equity Enhanced Income Leaders ETF (HLFE).
These ETFs aim to provide investors access to existing Harvest equity income exchange traded funds “to produce high monthly cash distributions and the opportunity for capital appreciation,” says the company.
"We believe the new suite of Harvest Enhanced Equity Income ETFs offers an innovative approach to provide higher income by investing with modest leverage in existing Harvest Equity Income ETFs," said Michael Kovacs, President and CEO of Harvest.
The investment objectives of the ETFs are to provide unitholders with high monthly cash distributions and the opportunity for capital appreciation by investing, on a levered basis, in the corresponding underlying Harvest ETF, an exchange traded mutual fund managed by the manager and engage in covered call strategies, explains the company.
“At least initially and under normal market conditions, it is expected that each of the Harvest Enhanced Equity Income ETFs will use approximately 25% leverage in order to seek to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation,” says the company.
