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Harvest Amazon Enhanced High Income Shares ETF (AMHE)
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Harvest NVIDIA Enhanced High Income Shares ETF (NVHE)
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Harvest Eli Lilly Enhanced High Income Shares ETF (LLHE)
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Harvest Microsoft Enhanced High Income Shares ETF (MSHE)
Q: Harvest recently launched 4 individual share etf’s which uses covered call and leverage.
The etf’s have only been out a few weeks but the leveraged versions seem to keep up with the individual stocks in terms of price appreciation.
How would you expect these etf’s to perform over the long term compared to the individual stock that it holds?
Would this be a way to get yield and price appreciation? Would you hold these etf’s instead of the underlying stock?
The etf’s have only been out a few weeks but the leveraged versions seem to keep up with the individual stocks in terms of price appreciation.
How would you expect these etf’s to perform over the long term compared to the individual stock that it holds?
Would this be a way to get yield and price appreciation? Would you hold these etf’s instead of the underlying stock?
5i Research Answer:
Please see this answer from yesterday. Essentially one is trading long term capital gains for enhanced income. Over the long term, we would expect them to significantly lag the underlying stocks. The 25% leverage does of course increase potential gains, but also potential risks. The fee of 0.40% will also be a drag on performance no matter what happens. We would prefer the underlying stocks.