Harvest Premium Yield Treasury ETF, HPYT:CA

Harvest Premium Yield Treasury ETF, HPYT: CA (CAD) or HPYT.U:CA (USD)

1.     Fund facts

Current price HPYT: $10.54 CAD with

·         Monthly distribution $0.15 CAD

·         Yield: 17.21% based on $0.15 * 12 / $10.54

Current price HPYT.U: $10.78 USD

·        Monthly distribution $0.15 USD

·        Yield: 16.70% based on $0.15 * 12 / $10.78

 

2.     Canada’s Largest Covered Call Bond ETF

The Harvest Premium Yield Treasury ETF – A portfolio of ETFs, which hold longer dated US Treasury bonds that are secured by the full faith and credit of the US government, employing up to 100% covered call writing to generate a higher yield and maximize monthly cash flow.

3.     Investment Goal

Harvest Premium Yield Treasury ETF will seek to provide high monthly cash distributions to Unitholders by investing, on a non-levered basis, in a portfolio of exchange traded funds, selected by the Manager, that provide exposure primarily to longer-dated U.S. treasury bonds and are listed on a regulated stock exchange in North America. HPYT will generally write covered call options on up to 100% of the portfolio securities. The level of covered call option writing may vary based on market volatility and other factors.

4.     Benefits of investing in HPYT

·         Exposure to high quality US Treasury Bonds through US listed ETFs

·         Covered call strategy increases yields and lowers volatility on underlying holdings

·         Experienced active covered call specialists – Harvest ETFs

·         Currency hedged with attractive tax efficient income

·         Competitive management fee 0.45%

 

Distribution Facts	Class A	Class B	Class U
Last Cash Distribution Per Unit	CA$0.1500	CA$0.1500	US$0.1500
Last Record Date	2024/11/29	2024/11/29	2024/11/29
Cash Distributions Since Inception	CA$2.1000	CA$0.9000	US$1.5000
Cash Distribution Frequency	Monthly
Distribution Method	Cash or DRIP

Reference source: https://harvestportfolios.com/etf/hpyt/

 

5.     Personal notes

In the current economic conditions, the interest rates should be going down, i.e. these ETF price should go up. Housing market and stock market is in a bubble state.

·         House price is not affordable to local residents according to analysts

·         Stocks are traded at very high PE.

·         Economic conditions are under high wage which leads to higher product costs. Local products couldn’t compete with foreign products coming from countries with lower labor costs. The boosting minimum wages were originated by governments to catch up with higher living costs due to higher rents, higher house prices.

·         Higher local product prices were somehow originated by speculation due to enormous amount of money printed by governments. They printing money for residents to afford rising living costs. However, product prices were going up to neutralize that. Now we are facing permanent problem with high local product costs, i.e. no more local jobs.

Those bubbles could be burst at anytime as cautioned by many analysts and investment guru out there.

The HPYT.U allows us to park cash in USD. The HPYT allows us to park CAD cash.