Leadership Matters: A Look at Harvest’s Approach to Income Focused ETF Investing

Harvest ETFs https://harvestportfolios.com/ has carved out a distinct position in Canada’s income-focused investment landscape by building portfolios around a simple but powerful idea: historically leaders have outperform over time. As Co-Chief Investment Officer James Learmonth, CFA, explains, “The companies we hold in our Harvest Income Leaders™ ETFs are dominant players in their industries. They’re usually among the largest. They have significant market shares, strong competitive moats, global brand power, and they stand out as leaders in terms of innovation.”

This philosophy forms the backbone of the Harvest Income Leaders™ ETFsuite - a family of sector-specific and diversified ETFs designed to deliver monthly income, exposure to industry-leading companies, and long-term resilience through market cycles.

Harvest’s investment process begins with what the firm calls its DNA process. As Learmonth describes it, “We start off by Defining a large universe, based off a theme or sector that we think has long-term growth potential. We Narrow that down using quantitative metrics. Then, we Actively select a portfolio of 20 to 30 companies using quantitative, fundamental, and technical analysis. Define – Narrow – Actively Select: DNA.”  

Harvest Income Leaders™ ETFsspans seven major sectors: healthcare; technology; utilities; global REITs; industrials, as well as U.S. and Canadian banks. Additionally, Harvest offers diversified U.S. and Canadian equity portfolios, giving investors broad exposure to dominant North American companies.

Most ETFs in the Income Leaders™ suite are equally weighted, meaning each stock receives the same allocation regardless of size, while disciplined quarterly rebalancing provides the opportunity to adjust holdings back to their original target weights.

In addition to this portfolio management process, every fund employs an active covered call strategy, which is central to their income profiles. The ETF suite uses a covered call strategy to generate option premiums, the premiums earned form part of the ETF’s distribution that is then paid out to unitholders monthly.  

Harvest’s covered call overlay also adds an additional buffer for investors that helps to generate income even in down markets, which could be a valuable feature. While Harvest expects 2026 to be a favourable year for equities, thanks to U.S. fiscal stimulus in the way of tax incentives and the lagged effects of Federal Reserve rate cuts, it still sees the potential for volatility driven by inflation concerns, geopolitical tensions, and unpredictable trade policy.  

It’s an environment well suited for the type of large-cap leaders that Harvest holds within its funds. “Most of the companies that we invest in have been through multiple economic cycles over time,” Learmonth noted. “They generally have very high-quality balance sheets, relatively low debt to equity ratios, and they all have the ability to invest even in downturns, enabling them to come out of down markets even stronger than they went in.”  

The resilience of these leaders, along with large-cap and covered call strategies, are reasons why Harvest Income Leaders™ ETFs are seen as a solution that can fit comfortably into an income sleeve of a broader portfolio - one that can fill the gap between the lower interest rates currently available through bonds, and direct equity exposure. These fund characteristics can also make them a good solution for investors such as retirees, who might be more dependent on their investment portfolio for regular cash spending needs, or people who are actively employed looking to generate an additional cash flow while still retaining equity exposure for upside participation.

In addition to long-term growth potential, many of these ETFs already have 10+ year track records of delivering consistent income. Amongst them are three standouts: Harvest Healthcare Leaders Income ETF (TSX: HHL); Harvest Tech Leaders Income ETF (TSX: HTA)ⁱ; and Harvest US Equity Leaders Income ETF (TSX: HBF)ⁱⁱ.

The Healthcare Leaders Income ETF (HHL) is Harvest’s flagship fund, and the largest healthcare fund in Canada, with over $1.8 billion in assets under management. The fund boasts a current yield of 10.37% as at April 30, 2026. Click here to see performance of Harvest ETFs. .

The fund is propelled by three significant drivers: aging global populations; rapid growth in emerging markets; and technological innovation in robotics, biotech and drug development.  

The Harvest Tech Leaders Income ETF (HTA) is a concentrated portfolio of 20 large-cap North American tech leaders, that together, are tapping into multiple megatrends that include: artificial intelligence; cloud infrastructure; cybersecurity; advanced communications; autonomous vehicles; and electrification. HTA has a 10+ year track record and yields 9.76% as at April 30, 2026. Click here to see performance for all Harvest ETFs.

Finally, the Harvest U.S. Equity Leaders Income ETF (HBF) is a diversified portfolio of dominant U.S. companies across sectors such as energy, consumer staples, consumer discretionary, and technology. It focuses on some of the world’s most recognizable global brands and currently yields 8.24% as at April 30, 2026.

Harvest also offers enhanced versions of its Healthcare Leaders, Tech Leaders and Utility Leaders ETFs. Each of them employs a modest 25% leverage to increase exposure and boost distribution yields. While leverage can increase income potential, it also introduces additional volatility into the equation, making these portfolios best suited for investors comfortable with a slightly higher risk profile.

Together, these funds have helped to make Harvest a growing force in the Canadian ETF market. Recently, it surpassed $11 billion in assets under management, cementing its position as one of Canada’s fastest-growing ETF providers for investors looking for high-quality income solutions backed by disciplined portfolio construction and long-term leadership themes.

For more information on Harvest Income Leaders™ ETFs, go to harvestportfolios.com, where you can explore the full suite of products as well as valuable market insights.  

_DISCLAIMER:

_{Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds managed by Harvest Portfolios Group Inc. (the “Funds”). Please read the relevant prospectus before investing. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns (except for figures of one year or less, which are simple total returns) including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns.}

_{Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available Class units of the Fund you own. If a Fund earns less than the amounts distributed, the difference is a return of capital.}

_{The current yield represents an annualized amount that is comprised of 12 unchanged monthly distributions (using the most recent month’s distribution figure multiplied by 12) as a percentage of the closing market price of the Fund. The current yield does not represent historical returns of the Fund.}

_{Funds that use modest leverage of 25% do so to enhance exposure, directly or indirectly, to the underlying stocks. This places them within the category of liquid alternative ETFs.  The use of leverage increases the return volatility, meaning it will amplify both gains and losses.}  

‍