Harvest Diversified High Income Shares ETF (TSX: HHIS)
- Anthony Dumas
- Jun 26
- 3 min read
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?
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
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?
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
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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