Harvest Diversified Equity Income ETF (HRIF.TO) provides high monthly cash distributions and the opportunity for capital appreciation by investing, on a non-levered basis, in an equally weighted portfolio of Harvest ETFs that engage in covered call strategies to enhance monthly distribution yields.
HRIF ETF Review
- A one stop diversified core equity income solution
- Exposure to leading large capitalization companies across sectors
- Exposure to powerful long-term growth trends
- Attractive monthly income with opportunity for capital appreciation
- Covered call strategy used to enhance portfolio income potential and lower portfolio volatility
- Direct exposure to underlying ETFs without the use of leverage
What is the Best Covered Call ETF in Canada?
- BMAX.TO: Brompton Enhanced Multi-Asset Income ETF
- HDIF.TO: Harvest Diversified Monthly Income ETF
- HDIV.TO: Hamilton Enhanced Multi-Sector Covered Call ETF
- HRIF.TO: Harvest Diversified Equity Income ETF
- HYLD.TO: Hamilton Enhanced U.S. Covered Call ETF
- PDIV.TO: Purpose Enhanced Dividend Fund
- ZWQT.TO: BMO Global Enhanced Income Fund
Here is a table comparing HRIF to similar covered call ETFs in Canada as of September 30, 2023.
| Manager |  |  |  | |  | |
| ETF | ZWQT | BMAX | HDIV | HYLD | HDIF | HRIF |
| Inception | 2023-06-19 | 2022-10-18 | 2021-07-19 | 2022-02-04 | 2022-02-04 | 2023-04-12 |
| MER | 0.73% | 2.59% | 2.39% | 2.08% | 1.58% | N/A |
| AUM | $4,300,000 | $62,000,000 | $345,800,000 | $434,500,000 | $310,120,000 | $6,100,000 |
| 1Y | N/A | N/A | 14.28% | 19.44% | 9.65% | N/A |
| 3Y | N/A | N/A | N/A | N/A | N/A | N/A |
| 5Y | N/A | N/A | N/A | N/A | N/A | N/A |
| 10Y | N/A | N/A | N/A | N/A | N/A | N/A |
Conclusion
This fund of fund ETF will most likely have a high MER above 1% 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/XUS 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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