Unveiling the Investment Duel: A Comparative Analysis of HDIF vs HDIV -

My personal take HDIF vs HDIV

Despite having a higher MER, HDIV appears to be a more favorable option for income-oriented investors, boasting a superior yield and total return. It’s crucial to consider that this comparison relies solely on a one-year historical analysis, making it unjust to declare a decisive winner within such a limited timeframe. Both funds operate as covered call ETFs, generating monthly income through premiums from option-selling activities. Additionally, they fall under the category of funds of funds, composed of various ETFs. (HDIF vs HDIV)

While HDIF exclusively invests in Harvest-issued ETFs, HDIV takes a more diversified approach by including ETFs from BMO, Hamilton, Horizons, and others, positioning itself better in terms of diversification.

Both ETFs share similar drawbacks, particularly the covered call strategy employed by both, limiting upside potential for the portfolio.

Both funds utilize 25% leverage, which has the potential to increase yields and performance but also introduces additional risk, especially in a high-interest rate environment.

It’s essential to recognize that both funds cater to a specific niche of investors prioritizing income. While I personally advocate for investors to seek a balance between growth and income, I caution that, in the long run, covered call ETFs may exhibit unstable yields and underwhelming total return (price performance + dividend yield).

Executive summary HDIF vs HDIV

Aspect	HDIF	HDIV
Investment Approach	Fund of funds, diversified portfolio of Harvest’s ETFs	Fund of funds, diversified portfolio of ETFs
Primary Objective	Higher yield through covered call strategy + Moderate potentiel growth	Higher yield through covered call strategy + Moderate potentiel growth
Underlying Holdings	Harvest’s covered call ETFs	Seven covered call ETFs from different issuers (sector-focused ETFs)
Yield	11.39%	12.21%
Leverage	25% leverage	25% leverage
MER (Management Expense Ratio)	1.98%	2.39%
Risk Management	Covered call strategy on up to 33% of equity securities	Unknown
Frequency of Dividend Distribution	Monthly basis, consistently at the targeted rate	Monthly basis, consistently at the targeted rate

Performance comparison

Investment objective

HDIF: Harvesting Diversification for Enhanced Monthly Income

Harvest Diversified Monthly Income ETF (HDIF) takes center stage as a unique fund of funds, delving into diverse sectors. This article unveils its covered call strategy and explores its distinctive approach, focusing on delivering high yields through dividends and premiums. With a target yield exceeding 9%, HDIF offers consistency in monthly dividends and the allure of 25% leverage at institutional rates, all at a competitive Management Expense Ratio (MER) of 1.98%.

HDIV: Harvesting Global Investments for Income and Stability

Harvest Global Investments Ltd. introduces HDIV, a passive covered call ETF designed for income-seeking investors with a penchant for low volatility. This segment delves into HDIV’s strategic investment in seven covered call and sector-focused ETFs, emphasizing large corporations. Unraveling its risk management approach and expense structure, HDIV showcases a nuanced path for investors aiming for both yield and stability, sporting a MER of 2.39% and an expense ratio of 0.65%.

Under the Hood: Unveiling Their Underlying Holdings

This section peels back the layers, comparing the underlying holdings of HDIF and HDIV. HDIF’s venture into Harvest’s covered call ETFs contrasts with HDIV’s meticulous selection of seven ETFs from different issuers, aligning with its focus on large corporations. The common thread? Both deploy covered call strategies, introducing an extra income stream while navigating the complexities of risk management.

HDIF

Ticker	ETF Name
HTA	Harvest Tech Achievers Growth & Income ETF
HBF	Harvest Brand Leaders Plus Income ETF
HLIF	Harvest Canadian Equity Income Leaders ETF
HHL	Harvest Healthcare Leaders Income ETF
HUTL	Harvest Equal Weight Global Utilities Income ETF
HUBL	Harvest US Bank Leaders Income ETF
TRVI	Harvest Travel & Leisure Income ETF

Please visit issuers’ website for most up-to-date data

HDIV

TICKER	NAME	WEIGHT
NXF	CI Energy Giants Covered Call ETF	20.9%
HMAX	Hamilton Canadian Financials Yield Maximizer ETF	18.7%
HFIN	Hamilton Enhanced Canadian Financials ETF	18.3%
GLCC	Horizons Gold Producer Equity Covered Call ETF	18.0%
HTA	Harvest Tech Achievers Growth & Income ETF	17.1%
HHL	Harvest Healthcare Leaders Income ETF	16.2%
UMAX	Hamilton Utilities Yield Maximizer ETF	12.3%
HUTS	Hamilton Enhanced Utilities ETF	3.8%

Covered Call ETFs: High Yields or Hidden Hazards?

Full review of ZWU – BMO Covered Call Utilities ETF

Dividend distribution

HDIV

Amount	Dividend Type	Ex-Div Date	Record Date	Pay Date	Declare Date

0.1410	Regular	1/30/2024	1/31/2024	2/9/2024	1/23/2024

0.1410	Regular	12/28/2023	12/29/2023	1/8/2024	12/20/2023
0.1400	Regular	11/29/2023	11/30/2023	12/7/2023	11/23/2023
0.1400	Regular	10/30/2023	10/31/2023	11/7/2023	10/24/2023

HDIF

Amount	Dividend Type	Ex-Div Date	Record Date	Pay Date	Declare Date

0.0708	Regular	1/30/2024	1/31/2024	2/9/2024	1/24/2024

0.0708	Regular	12/28/2023	12/29/2023	1/9/2024	12/15/2023
0.0708	Regular	11/29/2023	11/30/2023	12/8/2023	11/16/2023
0.0708	Regular	10/30/2023	10/31/2023	11/9/2023	10/16/2023