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Hamilton Enhanced Multi-Sector Covered Call ETF (HDIV)
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Harvest Canadian Equity Enhanced Income Leaders ETF (HLFE)
Q: I have held Harvest Canadian Equity Enhanced Income Leaders ETF (“HLFE”) but now see that Harvest is terminating this fund.
What would be the reason for this?
What should I be watching for in other ETFs that may be doing this?
They are paying out the proceeds to the remaining unit holders on July 5. How long before I see this in my brokerage account? Would I still be getting my usual monthly distribution on July8. I have emailed Harvest but yet to receive an answer.
Can you recommend a similar ETF to replace HLFE or should I simply add to my existing position of CNCL?
What would be the reason for this?
What should I be watching for in other ETFs that may be doing this?
They are paying out the proceeds to the remaining unit holders on July 5. How long before I see this in my brokerage account? Would I still be getting my usual monthly distribution on July8. I have emailed Harvest but yet to receive an answer.
Can you recommend a similar ETF to replace HLFE or should I simply add to my existing position of CNCL?
5i Research Answer:
Pretty much the only reason for any manager to terminate a fund is because it is not making money for the management company. HLFE has only garnered $2.6M in assets, and is likely costing Harvest money. No vote is required to close an ETF. For clues on other funds, we would simply watch asset growth. Typically, any ETF below $20M in assets could be vulnerable to closing. It may take a couple of business days for brokers to reflect the cash proceeds in client accounts. No distribution was declared for July. We think HDIV would be an acceptable replacement. CNCL is also very small at $14M in assets.