Oakville, Ont.-based Harvest Portfolios Group Inc. has completed the initial offering of A-class units of Harvest Global Resource Leaders ETF, as well as A-class and U-class units of Harvest US Bank Leaders Income ETF, the firm announced on Monday.
Both funds begin trading on the Toronto Stock Exchange (TSX) today.
Harvest Global Resource Leaders ETF aims to provide unitholders with quarterly cash distributions and the opportunity for capital appreciation.
The objectives behind Harvest US Bank Leaders Income ETF is to provide unitholders with monthly cash distributions, the opportunity for capital appreciation and lower overall volatility of portfolio returns than would otherwise be experienced by owning equity securities of the issuers directly.
To attain lower volatility of portfolio returns, both ETFs will write covered call options on up to 33% of portfolio securities. The level of covered call option writing may vary based on market volatility and other factors.
“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,” says Michael Kovacs, president and CEO of Harvest, in a statement.
“We are excited about the opportunities in the resource sector through the direct correlation to a growing world economy, and U.S. financials with the positive growth dynamics that are presently occurring and projected to continue,” he adds
Kovacs also says in an email to Investment Executive that its Blockchain Technologies ETF — which replicates the performance of Harvest’s blockchain technologies index — will begin trading on the TSX on Wednesday.