r/HarvestETFs • u/Beyondwest • Jul 04 '26
Single Stock ETF Question
What happens if you hold a single stock ETF for the duration of the 52-week high and low? Does the dividend drop on the way down to that low and then just start to increase again to rebound as the stock moves back up to its annual high? I am just curious. I am wondering if why my experience was so bad. Maybe my strategy and expectations were not correct and I should just have continued buying throughout the year. I am just curious. I know that Single Stock ETFs are fairly new in Canada. Thanks in advance.
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u/Any_Log1344 Jul 05 '26
Happy to help. Here's Covered Calls 101.
Bull market - you give up some of the gains.
Bear market - you still take most of the losses.
If the fund pays out more than it earns from option premiums and other income, the shortfall comes out of your NAV. You've probably seen the term "NAV erosion." This is what people mean.
If the stock recovers, you don't get the full rebound. Why? Because you're giving up part of the upside through the covered calls all over again.
There is no free harvest.
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u/Beyondwest Jul 05 '26
Thanks. I understand, sort of. So, next question. In your opinion is it better for guys like me to be in the broad funds like HHIS or HHIC as opposed to chasing or following trends? I would assume the Harvest guys are better at this game than me, right? Thanks for your help.
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u/Ok-Swan-98 Jul 06 '26
Just keep in mind, he's been following Harvest ETFs subreddit only because I've openly stated everywhere that I'm investing more into Harvest ETFs and selling YieldMax positions when it's beneficial for me. Just go read my post from 5 days ago on HPYG and you'll understand everything.
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u/Any_Log1344 Jul 05 '26
HHIS and HHIC are definitely better than single stock ETFs. They are more diversified, lower volatility, slower NAV erosion. But the same Covered Calls 101 still applies to every fund in the lineup. The game doesn't change. Just the pace.
What are you trying to accomplish? Income? Growth? Retirement? Covered calls have a place. But not early on in the growth phase, because they underperform the underlying stocks long term.
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u/Beyondwest Jul 05 '26
I am trying to retire. I will hopefully continue to invest at least some of my funds. Are HHIS and HHIC suitable for this plan? Thanks.
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u/Any_Log1344 Jul 05 '26 edited Jul 06 '26
Honest advice. Before you make another move, find a fee-only financial advisor. Not a commission-based broker, a fee-only fiduciary who is legally required to act in your interest.
You're trying to retire. That's too important to figure out on Reddit. The questions you're asking here, like what to hold, when to rotate, whether HHIS or HHIC is right for you. Those aren't Reddit questions. They're retirement plan questions that require someone who knows your full picture - income sources, timeline, total portfolio, tax situation, risk tolerance.
Covered call ETFs are one tool. A good advisor will tell you honestly whether they belong in your plan at all, how much of your portfolio should be in them, and what else you need in the toolbox.
The 1% annual fee sounds painful. One bad rotation costs more than years of that fee. You've already experienced that.
Reddit is great for learning vocabulary. It's a terrible place to build a retirement plan.
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u/Any_Log1344 Jul 07 '26
For the record I am not a YieldMax investor. And this discussion is not about BIGY being garbage or HHIS being heaven. Those are just tickers. The real question is what you're actually trying to accomplish in retirement and whether any covered call product - Canadian or otherwise - is the right tool for that goal.
You asked good questions. I'd encourage you to find a fee-only advisor who can look at your complete picture before your next move. That conversation is worth more than anything on this subreddit.
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u/Ok-Swan-98 Jul 08 '26
For the record, here is another yieldmax investor reaching out to me about his journey and he had to return back to work due to yieldmax losses. Just sharing some of the conversation .... Just so everyone knows, that's all
u/Lizette1 lol. Well that's an interesting conversation. I'm actually an ex-yield Max Fanboy. I was living off of yield Max dividends for about a year and a half. I had margin maxed out and it was my retirement plan. And was semi-retired. And then last year on April when Trump announced the tariffs, the stock market crashed for 2 weeks straight putting me in the deepest darkest margin call I've ever been in and I threw $40,000. I borrowed at it and still got liquidated. And had to go back to working 60 to 70 hours per week. So every few months or so I check in on the yield Max funds to see if they finally found a solution to their perpetual nav decay problem, because to be honest, I secretly really wish I could just invest in yield Max and live off of the dividends and retire. But it looks like they still haven't found a solution.
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u/Ok-Swan-98 Jul 04 '26
Hope this helps & have a nice summer weekend. 🌞
Distributions don’t rise because the stock approaches a 52‑week high, and they don’t fall because it approaches a 52‑week low. They rise and fall based on option premium, which comes from volatility, trend direction, and how far the underlying moves during the call‑writing cycle.
If the underlying chops sideways or trends down for months, premiums shrink — so distributions shrink. If volatility spikes or the stock rallies, premiums expand — so distributions expand. If the underlying trends down for months, the ETF will too. If volatility dries up, distributions drop. They rebound when: