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Harvest ETFs
About 0.0% recurring income, but over the last 3 years capital fell 7%/yr.
Payout over time
Fund health
This fund adds leverage on top of the same covered-call strategy as HHL.TO. The return split below shows how much of this fund's own return came from price versus distributions; the full leverage comparison is further down this page.
Where the 3-year return came from
The unit price fell 6.6% a year over this window: the return came entirely from distributions, with part of the payout offset by the price decline.
3-year annualized, on a shared scale: bars left of the line are negative. Capital appreciation is the fund's own unit-price change; income return is the contribution from distributions being reinvested. The two combine (multiplicatively) to the total return.
How it's taxed
The CRA taxes each distribution dollar by its character. These shares are measured against the full taxable distribution, including any portion the fund reinvested as units rather than paying in cash.
| Character | % of taxable | $ / unit |
|---|---|---|
| Capital gains | 96% | $1.0781 |
| Return of capital | 4% | $0.0419 |
For a covered-call or leveraged fund, return of capital can include option premium or realized gains classified as ROC for tax purposes, not your capital handed back. It still lowers your cost base, so the deferred tax can increase a later capital gain or reduce a later capital loss when you sell.
Based on Harvest ETFs's 2025 T3 / tax-factor filing. Character can vary year to year. This is not tax advice; consult a tax professional about your situation.
What you keep, in your account
Each figure below starts from the headline yield of 13.3% and shows an estimate of what you keep after tax. Where you hold the fund changes the answer: a TFSA shelters Canadian tax and can still lose foreign withholding tax when the fund has foreign withholding, a non-registered account taxes each character at its own rate, and an RRSP defers tax until you withdraw.
These figures are estimates at the top ON marginal tax rate, not your personal rate.
Illustrative, not tax advice.
Fund vs unleveraged sibling
HHL.TO runs the same covered-call strategy on the same basket without the 1.25x leverage, so the difference below isolates what the leverage added, not the options.
| Last 36 months | HHLE.TO Harvest Healthcare Leaders Enhanced Income ETF | HHL.TO Harvest Healthcare Leaders Income ETF |
|---|---|---|
| Distribution yield | 13.3% | 10.0% |
| Total return (3y/yr) | 4.9% | 5.1% |
| Capital growth (3y/yr) | -6.6% | -4.1% |
| Growth of $100, reinvested | $115 | $116 |
| Growth of $100, not reinvested | $81 | $88 |
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Next steps
Prices as of 2026-07-24. Distributions as of 2026-07-27. Tax character year 2025.
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Coverage 0.4×: The fund paid a 13.3% distribution rate against a 4.9% a year total return; the current distribution rate was higher than the total return over this window.
Of the 13.3% distribution rate, 0.0 points were classified as recurring income in the latest T3 tax-character split (dividends, interest, foreign income); the rest was capital gains and return of capital.
Why the price moved
An approximation: both funds write calls, so this gap isolates the added leverage and financing, not the option overlay itself.
Own payout record
Cash distributed per unit, by calendar year, from the fund's own distribution history (up to the last 6 years). "Reduced" marks a year where the cash paid per unit fell more than 5% versus the prior year.
HHLE.TO and HHL.TO run the same covered-call strategy; HHLE.TO adds 1.25x leverage. Over the last 36 months their total returns were similar, with HHLE.TO paying about 3.3pp more distribution yield.
Trailing 12-month cash yield; 3-year annualized total and price return. Past performance is not indicative of future results.