Covered call strategy aims to generate tax-efficient income while maintaining stock exposure
Harvest ETFs offers single stock ETFs that provide investors with exposure to individual companies while using a covered call strategy to generate monthly, tax-efficient income.
Why would an investor choose a single stock ETF?
Harvest ETFs believes it comes down to combining exposure with income.
Single stock ETFs are designed to track the performance of an individual company, giving investors direct exposure to that stock without purchasing it outright.
But Harvest adds another layer.
Through a covered call strategy, the ETFs aim to generate income on top of that exposure.
This approach allows the fund to collect premiums by writing call options on the underlying stock.
For investors, that can translate into consistent monthly income.
According to management, this structure is particularly appealing for those looking to balance growth with income generation.
The focus is not just on holding a stock — but on making that position work harder.
Another key consideration is tax efficiency.
The income generated through this strategy is structured to be more tax efficient for Canadian investors, which can improve after-tax returns.
In a market where investors are increasingly looking for both yield and exposure to leading companies, single stock ETFs offer an alternative approach.
Rather than choosing between income and equity exposure, the strategy aims to provide both.
To learn more about Harvest ETFs, please click the request investor info button.
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. 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.