When looking for investments to hold for the long haul, it doesn’t get much better than exchange-traded funds (ETF). And of these, Harvest Diversified Monthly Income ETF (TSX:HDIF) is especially worth considering.
This ETF offers a high dividend yield of nearly 10% and a diversified approach that targets consistent income. It’s a standout choice for investors who want both steady payouts and exposure to a mix of sectors like technology, healthcare, and financial services.
That focus on diversification is a key strength. With its ETF holdings across multiple sectors like financial services (21.71%), technology (16.14%), and healthcare (15.65%), HDIF spreads out risk while maximizing potential returns. This diversification helps investors avoid the pitfalls of putting all their eggs in one basket. It can also help provide stability during economic downturns.
Source: Getty Images
High yield
One of the main draws of HDIF is its high yield, which is supported by its diverse investments. The consistent payouts reflect the ETF’s ability to generate income across various industries, thus making it appealing for those looking to build monthly passive income.
Fair price today
In terms of valuation, HDIF looks fairly priced at the moment. Its current price-to-earnings (P/E) ratio is 17.8, and its net asset value (NAV) sits at $8.89, pretty much matching its $8.90 market price. This suggests that HDIF is fairly priced and could offer upside potential as market conditions shift. The ETF’s relatively low P/E ratio indicates that it’s not overbought, making it a good opportunity for investors seeking long-term growth along with dividends.
The current trading price of around $8.90 makes it an accessible option for investors, even as it’s sitting close to its 52-week high. With a 52-week range between $6.86 and $8.97, the ETF has rebounded strongly, showing a year-to-date total return almost 20%. This indicates a solid upward trend and investor confidence in the ETF’s ability to perform in the current market.
Other benefits
Volume and net assets further reinforce HDIF’s stability. While the average trading volume is modest, it has maintained a healthy asset base of $390.64 million, reflecting the confidence investors have in its long-term income-generating potential. This consistency in investor support shows that HDIF is more than just a high-yield product: It’s a stable option for those who want reliability in their portfolios.
HDIF also benefits from its inception date being fairly recent. It was created in 2022, and this means it’s designed to address current market conditions and investor needs. It allows the ETF to be particularly agile, able to adapt its strategy to modern market dynamics, unlike some older funds that might be stuck in legacy structures.
Bottom line
All together, HDIF is a compelling choice for long-term investors. Its strong dividend yield, solid upward momentum, diversified holdings, and fair price make it a standout option today. If you’re looking for a way to build monthly passive income with less volatility, HDIF could be a key player in your portfolio.
