Harvest Diversified Monthly Income ETF (HDIF.TO) offers a portfolio of equally weighted Harvest ETFs positioned to deliver steady monthly income through distributions. This active portfolio is reconstituted and rebalanced at a minimum quarterly. HDIF is comprised of over 90 diversified large global companies and is designed to provide a consistent monthly income stream. An active covered call strategy is applied on up to 33% of each security held in each ETF. Leverage is utilized to further enhance income.
- A one-stop diversified core monthly income solution
- Exposure to leading large capitalization companies across sectors and nations
- Consistent monthly income with opportunity for capital appreciation
- Modest leverage anticipated to be 1.25x to enhance income
Top HDIF Holdings
HDIF holds 6 equally weighted Harvest covered call ETFs with 25% leverage. The ETF focuses on large global companies across health care, technology, utility and financial sectors. To generate an enhanced monthly distribution yield, an active covered call strategy is applied on up to 33% of each equity securities held in underlying portfolios.
| Ticker | Name | Weight |
|---|---|---|
| HBF | Harvest Brand Leaders Plus Income ETF | 18.8% |
| HLIF | Harvest Canadian Equity Income Leaders ETF | 18.7% |
| HHL | Harvest Healthcare Leaders Income ETF | 17.8% |
| HUBL | Harvest US Bank Leaders Income ETF | 17.0% |
| TRVI | Harvest Travel & Leisure Income ETF | 16.4% |
| HUTL | Harvest Equal Weight Global Utilities Income ETF | 16.3% |
| HTA | Harvest Tech Achievers Growth & Income ETF | 16.1% |
| HPYM | Harvest Premium Yield 7-10 Year Treasury ETF | 3.1% |
HDIF ETF Review
Quickly compare HDIF to other investments focused on Canadian equities by fees, performance, yield, and other metrics to decide which ETF fits in your portfolio.
| Manager | ETF | Name | Risk | Inception | MER | AUM | Beta | P/E | Dividend Yield | Distributions | 1Y | 3Y | 5Y | 10Y | 15Y |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| BlackRock | XEQT | iShares Core Equity ETF Portfolio | Medium | 2019-08-07 | 0.20% | $3,863,324,506 | 0.99 | 17.74 | 1.90% | Quarterly | 22.07% | 8.67% | N/A | N/A | N/A |
| BMO | ZWQT | BMO Global Enhanced Income Fund Series ETF | Medium | 2023-06-19 | 0.71% | $10,310,000 | N/A | N/A | N/A | Monthly | N/A | N/A | N/A | N/A | N/A |
| Brompton | BMAX | Brompton Enhanced Multi-Asset Income ETF | Medium | 2022-10-18 | 2.85% | $77,000,000 | N/A | N/A | 9.10% | Monthly | 22.84% | N/A | N/A | N/A | N/A |
| CI | CEQT | CI Equity Asset Allocation ETF | Medium | 2023-05-17 | N/A | $5,800,000 | N/A | N/A | N/A | Quarterly | N/A | N/A | N/A | N/A | N/A |
| Fidelity | FEQT | Fidelity All-in-One Equity ETF | Medium | 2022-01-25 | 0.43% | $369,800,000 | N/A | N/A | 1.17% | Annually | 28.83% | N/A | N/A | N/A | N/A |
| Global X | EQCC | Global X All-Equity Asset Allocation Covered Call ETF | Medium | 2024-05-28 | N/A | $2,005,753 | N/A | N/A | N/A | Monthly | N/A | N/A | N/A | N/A | N/A |
| Hamilton | HYLD | Hamilton Enhanced U.S. Covered Call ETF | Medium | 2022-02-07 | 2.40% | $576,200,000 | N/A | 21.78 | 11.51% | Monthly | 20.96% | N/A | N/A | N/A | N/A |
| Harvest | HDIF | Harvest Diversified Monthly Income ETF | Medium | 2022-02-11 | 2.37% | $371,920,000 | N/A | 16.67 | 10.42% | Monthly | 17.80% | N/A | N/A | N/A | N/A |
| Purpose | PDIV | Purpose Enhanced Dividend Fund ETF | Low to Medium | 2013-02-20 | 0.78% | $57,800,000 | 0.56 | 12.07 | 12.28% | Monthly | 7.52% | 3.84% | 6.34% | 4.86% | N/A |
| Vanguard | VEQT | Vanguard All-Equity ETF Portfolio | Medium | 2019-01-29 | 0.24% | $4,290,000,000 | 0.96 | 17.41 | 1.71% | Annually | 21.57% | 8.27% | 11.00% | N/A | N/A |
HDIF vs HDIV
HDIF is a higher-yielding and less expensive ETF than HDIV which is older, more popular and allocated more in Canada. Both funds have monthly dividend distributions.
HDIF vs HYLD
HDIF is a less expensive and more Canadian ETF than HYLD which is focused on American equities, higher-yielding, older, more popular and the same age. Both funds have monthly dividend distributions.
HDIF vs HRIF
HDIF is a better-performing, higher-yielding, more popular and older ETF than HRIF which is less expensive and has no leverage. Both funds have monthly dividend distributions and similar diversification.
What are the Fees for HDIF ETF?
The management expense ratio (MER) fees of HDIF is 1.58%. This means you are charged $158.00 for every $10,000 invested. This is less than most mutual funds charging approximately 2%, but high compared to most ETFs.
What is the Dividend Payout for HDIF?
The current dividend payout for HDIF is $0.0708.
What is the Target Yield for HDIF?
A consistently paid high monthly income yield of HDIF is 10.59%. This is more than most ETFs, but yields are abnormally high due to covered call options to generate income and help offset volatility.
What is the Difference Between HDIF and HDIV ETF?
The major difference between HDIF and HDIV is that HDIF holds only proprietary ETFs and HDIV holds a combination of proprietary and competitor ETFs and has a higher allocation to Canada with more Canadian holdings. Only one of these products should be held in a portfolio.
How Much of HDIF is Invested in Canada?
Approximately 25% of this ETF is invested in Canada. Comparing this fund directly to a 25/75 portfolio of XIU/XWD providing exposure to the S&P/TSX 60 and MSCI World Index, respectively, seems to be accurate.
| ETF | HDIF | Canadian | Weight |
|---|---|---|---|
| HHL | 21.1% | 0.0% | 0.0% |
| HUBL | 21.1% | 0.0% | 0.0% |
| HLIF | 20.8% | 99.8% | 20.7584% |
| HUTL | 20.4% | 22.7% | 4.6308% |
| HTA | 20.2% | 0.0% | 0.0% |
| HBF | 20.0% | 0.0% | 0.0% |
| Total | 100% | N/A | 25.3892% |
Conclusion
HDIF is a fund of fund ETF that has an extremely high MER of 1.58% and I highly recommend selecting the individual sector covered call ETFs independently that fit your risk tolerance. This strategy sacrifices total returns for yield and a monthly income stream that may contain return of capital (ROC). This investment should not be purchased prior to retirement and should generally be avoided. I highly recommend using a 25/75 portfolio of ZLB/XWD for a similar portfolio, lower fees and superior returns.
 |  |  |  |  |  |
|---|---|---|---|---|---|
| Advice | InvestCAN | InvestRESP | InvestUSA | RetireCAN | RetireMGN |
| $500.00 CAD $400.00 USD | $99.99 CAD | $79.99 USD | $99.99 CAD | $12.99 CAD $9.99 USD |
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