Investing in Exchange-Traded Funds (ETFs) is one of the best ways to diversify your risk along with enhancing the potential to earn returns. Today, we will look at two different types of ETFs: one that offers a regular income-earning opportunity and the other that has a short-term, high-risk, high-reward profile. Let’s discuss the Harvest Diversified Equity Income ETF Trust Units A (TSE:HRIF) and BetaPro S&P 500 VIX Short-Term Futures ETF (TSE:HUV) ETFs in detail.
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Harvest Diversified Equity Income ETF Trust Units A (HRIF)
The Harvest Diversified Equity Income ETF Trust Units A seeks to provide monthly income to investors along with the potential for capital appreciation from a portfolio of Harvest ETFs.
The HRIF was founded in April 2023 and currently boasts zero management fees. The ETF currently holds investments in nine ETFs, with assets under management (AUM) of C$16.78 million. It has monthly cash distributions of C$0.11 per unit. Year-to-date, HRIF ETF has returned 19.9% to investors.
BetaPro S&P 500 VIX Short-Term Futures ETF (HUV)
The BetaPro S&P 500 VIX Short-Term Futures ETF seeks to track the performance of the S&P 500 VIX Short-Term Futures Index. Historically, the returns from the index have been negatively correlated to the returns of the S&P 500 Index (SPX). The ETF offers short-term speculation opportunities to investors who seek to leverage the volatility of the SPX.
The HUV ETF was founded in December 2020 and carries a high expense ratio of 1.17%. As of date, HUV’s AUM is C$22.46 million. Year-to-date, HUV ETF has returned a negative 31.7% to investors since the SPX has had an exceptional year so far with 26.9% returns.
Ending Thoughts
Depending on one’s risk-return profile, investors can choose from the above-discussed ETFs that have very different characteristics.
