HPYB.TO

About HPYB.TO

Harvest Premium Yield Canadian Bank ETF is an actively managed exchange-traded fund that provides leveraged exposure to an equal-weight portfolio of the six leading Canadian banks: Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada, Toronto-Dominion Bank, Canadian Imperial Bank of Commerce, and National Bank of Canada. Launched in January 2026, it seeks capital appreciation, regular cash distributions, and reduced portfolio volatility through a dynamic options strategy involving covered calls and puts, alongside modest leverage via cash borrowing. This liquid alternative ETF pays distributions twice monthly at $0.0700 CAD per Class A unit, offering enhanced income generation by writing out-of-the-money options that adjust to market conditions—shifting to puts during rallies and calls during declines to rebuy low or sell high. With a management fee of 0.65% and eligibility for registered accounts like RRSPs and TFSAs, it targets medium-risk investors interested in the stable Canadian banking sector while aiming to mitigate downside through hedging and premium collection. The fund holds approximately six equity securities, supplemented by cash equivalents and options positions.