Harvest Diversified High Income Shares ETF (TSX: HHIS)

1. What exactly is HHIS?

• One-ticket access to 15 “enhanced” single-stock ETFs.  Each underlying ETF owns just one U.S. blue-chip growth company (think Nvidia, Microsoft, Tesla, Costco, Eli Lilly, etc.) and layers on a covered-call option strategy plus ~25 % modest leverage to drive extra cash flow. harvestportfolios.comharvestportfolios.com

• Sector mix: Tech dominates (about two-thirds) with a sprinkling of consumer staples and healthcare, giving you both innovation upside and some defensive ballast. harvestportfolios.com

• Management fee: 0 % at the HHIS level (you still pay the tiny fees embedded in the underlying Harvest ETFs). harvestportfolios.com

2. How do the monthly “dividends” work?

Record Date	Pay Date	Amount / unit
28 Feb 2025	07 Mar 2025	$0.25
31 Mar 2025	09 Apr 2025	$0.25
30 Apr 2025	09 May 2025	$0.25
30 May 2025	09 Jun 2025	$0.25
(Distributions vary; $0.25 has been the minimum so far.) harvestportfolios.com

• Cash or DRIP. You can take the distribution in cash or automatically reinvest it.

• Source of the cash: option-writing premiums + dividends from the underlying stocks.

• Annualized yield: If the $0.25/month pace holds, that’s roughly 24 % on the current $12.50 unit price (0.25 ÷ 12.5 × 12). Remember—high yield partly reflects the covered-call trade-off: capped upside in rip-roaring markets.

3. Early performance scorecard

Since Inception (16 Jan 2025)	Unit Price*	Distributions Paid	Total Return
Launch	$12.00 (NAV)
25 Jun 2025	$12.51	$1.00	≈ +12 %
*NAV quoted; market price usually tracks within a few cents. harvestportfolios.com

For context, the unit price has climbed about 15 % from late-March lows around $10.80-$11.00. ca.finance.yahoo.com  That’s a solid start, but the ETF is barely six months old—too short for definitive conclusions.

4. Does HHIS fit inside a TFSA?

Yes. The ETF is designated eligible for TFSA, RRSP, FHSA, RESP and RRIF accounts. harvestportfolios.com

• Withholding tax: Because HHIS holds U.S. equities indirectly, the 15 % U.S. dividend withholding still leaks out even in a TFSA. The big cash flow, however, is mostly option premium (taxed as capital gains outside a TFSA), so the drag is smaller than on a pure dividend fund.

• Good use-case: Parking HHIS in a TFSA lets those hefty monthly payouts compound tax-free—valuable if you’re chasing income growth.

5. Is now a good time to buy or top-up?

Lens	What we see today (26 Jun 2025)
Yield vs. GICs	24 % vs. 4-5 %—a huge spread, but comes with equity + leverage risk.
Discount/Premium	Trading fractions above NAV ($12.52 vs. $12.51) → fairly priced. harvestportfolios.com
Technical support	Independent trading desk flags an accumulate zone near $12.10 (stop $12.04). news.stocktradersdaily.com
Macro backdrop	Rates have plateaued, tech earnings remain robust, volatility is ticking higher—tail-wind for covered-call income.
Risk check	Concentrated in megacap growth + uses leverage → expect sharp drawdowns if NASDAQ stumbles.

Banker’s take:

• Initiating a position? Reasonable for yield-hunters who can stomach tech-heavy swings and want monthly cash.

• Adding more? Sensible if your income sleeve is under-weight equities and you keep exposure below ~10 % of your portfolio. Use the $12.10 level as a disciplined entry.

• Avoid if you need capital stability within three years or already carry high single-stock tech exposure elsewhere.

6. Key pros & cons at a glance

✅ Pros	⚠️ Cons
Eye-watering cash yield (~24 % at current pace).	Covered calls cap upside—won’t fully participate in sharp rallies.
Zero management fee at the fund level.	Short trading history—no downturn track record yet.
TFSA/RRSP/FHSA eligible (tax-advantaged compounding).	Leverage (~25 %) amplifies both gains and losses.
Diversified basket of market-leading innovators.	Concentrated in U.S. tech; sector rotation could hurt.

Bottom line

HHIS is an aggressive income machine: diversified single-stock ETFs + covered calls + modest leverage = high monthly cash flow at the cost of muted upside and higher volatility. For investors comfortable with those trade-offs—and especially for Canadians wanting to super-charge a TFSA income sleeve—the current ~$12.50 level looks attractive, provided you size the position prudently and stay disciplined.

(Always pair yield-oriented holdings with a core of broad, low-cost index exposure, and review within a comprehensive financial plan.)

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