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Growth, Defence, & Monthly Income: The Barbell Harvest ETFs Strategy

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Harvest ETFs

By Ambrose O’Callaghan, Harvest ETFs

(Sponsor Blog) 

Back in December 2023, we looked at how a barbell bond strategy works. In this piece, we will explore the barbell investing strategy from a different perspective. Conceptually, this investment strategy seeks to strike a balance between risk and reward by investing in high-growth “risk-on” assets, and defensive “risk-off” assets. By accessing the benefits of both “extremes,” this strategy aims to achieve balanced capital gains.

Today, we will review the barbell strategy using six Harvest ETFs on each end. Three defensive-oriented ETFs that also provide access to monthly cashflow through an active covered call option strategy, and three “risk-on” ETFs that offer exposure to growth-oriented areas, while also delivering consistent cashflow every month.

Reducing Risk | Defensive Income ETFs

HHL | Healthcare exposure plus monthly income

In August, we provided an overview of the healthcare space and how it has impacted the Harvest Healthcare Leaders Income ETF (TSX: HHL), Canada’s largest healthcare ETF. To reiterate; the health care sector has shown both defensive and growth-oriented qualities through its history. Healthcare is defensive due to the essential nature of it services, whereas its growth qualities stem from the high demand for specialized products as well as technological innovations.

Healthcare equities have faced challenges in North American and global markets through the first three quarters of 2025. As we highlighted in our recent monthly commentary, valuations have been compressed relative to the market and investors have looked for catalysts for a rebound in this climate. To that end, it is worth highlighting some stock-specific catalysts that are starting to surface.

Those catalysts have included Warren Buffett’s UnitedHealth purchase and headlines focused on the issue of reshoring and repatriation. More stock-specific catalysts have included some positive earnings released across select names. The most recent examples came in the form of Intuitive Surgical Inc., which jumped double-digits on the back of an improved medical devices market and large-capitalization biopharmaceutical innovator Regeneron Pharmaceuticals that posted strong returns following and upbeat quarter.  Compared to previous quarters when strong earnings went virtually un-noticed by the markets, seeing strong stock performance matching the strong reported earnings is perhaps a more subtle sign that sentiment has stabilized in the sector.

HHL offers exposure to a defensive sector that also has growth qualities. The portfolio is composed of 20 large-cap U.S. healthcare stocks, overlayed with an active covered call option writing strategy to generate high levels of monthly income. Indeed, HHL has delivered income every month for over a decade since its inception.

HUTL | Why utilities right now?

Utilities have long been regarded as a mainstay for those seeking stability, income, and defensive positioning in their portfolios. However, rising power demand, technological progress, policy shifts, and the ongoing global energy transition has made utilities a unique target for those who also want growth qualities. The Harvest Equal Weight Global Utilities Income ETF (TSX: HUTL) offers unique advantages as a utilities ETF, due to its global reach and its income generation.

HUTL | Benefits of utilities and steady income

Essential services with stable cash flows

Utilities deliver critical services like electricity, gas, water, and telecommunication, which are largely immune to economic cycles. Because of this, utilities are a stable source of revenue and cashflow.

Power demand growth

Electricity demand has soared in recent years and is set to increase at an even greater rate due to the proliferation of data centres and a broad electrification push. Data centres consumed roughly 1.5% of global electricity in 2024, a rate that could double by 2030. Goldman Sachs estimates that data centre power demand will grow by 165% by 2030.

Energy transition & infrastructure spending

Clean energy investment is projected to reach $2.2 trillion this year, more than double fossil fuel investment. HUTL offers exposure to leaders in this space, including VERBUND AG, Endesa, Fortum, Brookfield Renewable, and others. Meanwhile, the IEA forecasts that $450 billion will go into solar investment in 2025, with additional spending in grid and storage spending.

Diversification and the global advantage

Utilities are critical, but these companies also face risks from climate events and changing regulatory policy. HUTL’s global equal-weighted portfolio means that utilities exposure is spread across regions, reducing concentration risk. This helps to mitigate that regulatory risk as well as geographic challenges like storms, wildfires, and a changing political landscape.

Income generation and lower volatility

HUTL utilities Harvest’s active covered call option writing strategy to generate option premiums, which also serves to reduce portfolio volatility. Meanwhile, the utilities sector has historically outperformed during turbulent market periods. This is an added benefit in an uncertain market.

HVOI | A low volatility strategy with monthly income

In April, broader markets were reeling from the uncertainty that emerged in the wake of the “Liberation Day” tariff announcement. Markets have calmed in the months that followed, with the U.S. administration rolling back significantly on the high tariffs it originally had promised. That said, the CNN Fear and Greed Index shows that investors remain concerned at this late stage in 2025.

CNN Fear & Greed Index

Source: CNN.com, Fear & Greed Index, October 29, 2025.

Harvest launched the Harvest Low Volatility Canadian Equity Income ETF (TSX: HVOI) in April 2025. This ETF holds 40 top Canadian equities, which are ranked and weighted by their risk score and market cap weight, with a 4% maximum weight per name. The equities are scored according to risk and fundamental metrics.

Low Volatility | Portfolio Construction

Source: Harvest Portfolios Group, Inc. April 2025.

Benefits of HVOI

  • Access to rules-based portfolio that manages risk
  • Covered call strategy to generate monthly cashflow and lower volatility
  • Flexibility to employ cash-secured puts to generate additional income
  • Rules-based and disciplined portfolio construction process

Pressing Offense | 3 Growth-Oriented Income ETFs

HHIS | One ETF with top U.S. stocks built for a high monthly yield

In August 2024, Harvest ETFs launched the Harvest High Income Shares™ ETF suite. High Income Shares™ are single-stock ETFs that offer exposure to top companies in both the United States and Canada. The ETFs are overlaid with an active covered call writing strategy, seeking to generate high monthly income. Harvest High Income Shares™ have reached above $3 billion in total AUM since inception at the time of this publication. Continue Reading…

Why Polymarket could become the World’s biggest Betting Exchange

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By Alain Guillot
Special to Financial Independence Hub

Have you heard of Polymarket yet?

In short, Polymarket is a betting exchange, although they prefer to call it a prediction market. But let’s be honest … it’s gambling. The difference is in the structure.

In traditional sports betting, you gamble against the house. The sportsbook sets the odds, takes your bet, pays out winners:  and keeps a hefty share of the profits.

Polymarket flips that model. Instead of betting against the house, users bet against each other, while Polymarket simply takes a small 2% fee from the winner.

The platform launched in 2019 — just six years ago — founded by college dropout Shayne Coplan, who has already become one of the youngest self-made billionaires at just 27.

Only in America can someone go from bathroom coder to billionaire in under a decade. Bill Gates, Mark Zuckerberg, Larry Ellison, Michael Dell, Steve Jobs — and now Shayne Coplan — all proof that dropping out of college can pay off massively.

Polymarket first exploded during the 2020 and 2024 U.S. presidential elections, when users wagered millions on political outcomes. Originally focused on non-sports events, Polymarket eventually added sports betting, and that’s when things went vertical.

Now I believe Polymarket is on track to become the #1 sports betting platform in the world — potentially disrupting giants like FanDuel and DraftKings.

Here’s why:

Why Polymarket has an Unfair Advantage Continue Reading…

Rethinking your Allocation to Alternative Assets for 2026

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Image by Pexels: DS stories

By Devin Partida

Special to Financial Independence Hub

Alternative assets are investments that go beyond traditional stocks, bonds and cash. These include real estate, private equity and commodities. Unlike conventional investments that move with the broader market, these assets often behave differently, which gives your portfolio extra stability and opportunity.

Diversifying beyond the usual mix has become essential as market volatility and inflation make returns less predictable. Adding alternatives can smooth out performance swings, protect your purchasing power and access growth opportunities that public markets can’t always offer. It’s a wise way to strengthen your portfolio and prepare for whatever the market brings next.

What are Alternative Investments?

Alternative investments come in many forms, offering different ways to diversify your portfolio. Real estate provides steady income and long-term appreciation. At the same time, private equity and hedge funds aim for higher returns through active management and exclusive opportunities. Commodities like gold and oil can hedge against inflation, and infrastructure projects offer a stable cash flow tied to essential services. Even collectibles such as art, wine or rare coins can hold value beyond market trends.

These assets often move independently of public markets, which helps balance your portfolio during volatile periods. While they require high initial minimums and upfront investment fees, their transaction costs are often lower than those of traditional assets. Still, they come with unique challenges, such as limited liquidity, complex valuations and higher entry barriers that demand careful planning and due diligence.

Benefits of adding Alternatives to a Portfolio

Alternative assets offer new ways to manage risk, protect against inflation and uncover growth opportunities in areas often overlooked by public markets. When used thoughtfully, they can make your portfolio more resilient and better equipped to handle economic ups and downs. Here are some key benefits to consider:

  • Steady income streams: Real estate and infrastructure can generate reliable cash flow through rent, dividends and yield.
  • Inflation protection: Real estate and commodities tend to retain or grow in value when inflation rises. For example, gold prices are up more than 40% in 2025, proving how commodities can be a powerful hedge during uncertain times.
  • Higher long-term return potential: Private equity and venture capital can outperform public markets over time, rewarding patient investors.
  • Enhanced portfolio resilience: Combining alternatives with traditional assets can reduce volatility and create a more balanced, adaptable investment strategy.

Risks and Complexities to watch out for

Many of these investments require long holding periods, meaning your money could be locked in for years. Private equity and hedge funds often charge high management and performance fees that can affect your gains. Some alternatives don’t have transparent market prices, so tracking their real value isn’t always easy.

Commodities and emerging market assets can also swing sharply in value, reacting to global events and economic changes. Understanding these risks early allows you to make informed decisions, choose investments that match your comfort level and build a strategy that balances opportunity with smart risk management.

Determining the Right Allocation

When deciding how much to invest in alternative assets, it is important to align your allocation with your risk tolerance, time horizon and financial goals. Conservative investors might dedicate a modest amount of their portfolio to other options. At the same time, those with a higher risk appetite could go beyond that. Interestingly, 37% of Americans have expressed interest in using artificial intelligence tools to help manage their money. Continue Reading…

Is the “4%” Rule still relevant for Retirement Planning? What the experts say

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Late in October, my monthly MoneySense Retired Money column reviewed three recently published financial books, starting with financial planner William Bengen’s new A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More.

Below we canvassed more than a dozen retirement experts and financial planners in both Canada and the United States about their experiences with the Rule, both the original book as well as the new one.

These experts were gathered by Featured.com, which has been supplying Findependence Hub with quality content for several years now. It has changed its procedure so that editors like myself can request input on particular topics we think will interest our readership. The sources are all on LinkedIn, as you can see by clicking on their profiles below.

Here’s what we asked, followed by their answers, which have been re-ordered by me.

“What do you think of the 4% Rule: CFP Bill Bengen’s guideline about a safe annual Retirement withdrawal amount that factors in inflation? Have you read or do you plan to read Bengen’s just-published followup book: A Richer Retirement : Supercharging the 4% Rule to Spend More and Enjoy More? Do you agree or do you have your own tweaks to the 4% Rule? Looking for both Canadian and American input.”

Here is what these thought leaders had to say.

Adaptive Withdrawals protect Retirement through Market Cycles

The 4% Rule, created by CFP Bill Bengen in the 1990s, remains one of the most referenced retirement withdrawal guidelines. It suggests withdrawing 4% of your portfolio in the first year of retirement and adjusting that amount for inflation each year. The idea was to provide a sustainable income stream for at least 30 years without depleting your savings. Bengen’s newly published book, A Richer Retirement: Supercharging the 4% Rule to Spend More and Enjoy More, revisits this concept using updated data and broader asset allocations. He now argues the safe withdrawal rate could rise to around 4.7%, supported by stronger market performance and portfolio diversification beyond the original stock-bond mix. 

I see the 4% Rule as a reliable starting point, but not a fixed rule. It offers structure for retirees who need clarity on how much to withdraw each year, but real-world conditions require flexibility. For U.S. investors, I still begin with 4% as a baseline because it remains simple and conservative. Then I evaluate three major factors before adjusting: market volatility, portfolio performance, and expected longevity. For Canadian retirees, I tend to start lower, around 3.5%, due to differences in taxation, mandatory RRIF withdrawal rules, and the impact of currency and inflation differences compared to U.S. portfolios. 

My main adjustment to the rule is to make withdrawals adaptive rather than static. If the portfolio declines by more than 20% early in retirement, I recommend reducing withdrawals by 5% to protect capital. If inflation stays above 4% for more than two years while fixed income returns remain weak, I hold withdrawals steady instead of increasing them. Conversely, if long-term returns outperform expectations, withdrawals can rise modestly. These adjustments keep the retirement plan sustainable through changing market cycles. 

The lesson is to view the 4% Rule as a guideline, not a guarantee. Its true value lies in the discipline it introduces. A flexible version of the rule — tailored to taxes, inflation, and market behaviour — helps retirees spend with confidence while protecting their financial future. — Andrew Izrailo, Senior Corporate and Fiduciary Manager,  Astra Trust

Real Estate Investors Outperform Traditional 4% Rule

I’ve always thought the 4% rule is a decent starting point, but it’s really built around stocks and bonds. In my world of real estate, combining rental income with property value growth usually blows past that number. Instead of a fixed withdrawal, you can sell a property or pull out equity when the market’s high. That flexibility often makes your money last a lot longer in retirement. — Carl Fanaro, President,  NOLA Buys Houses 

Balance Freedom and Security in Retirement Journey

Retirement, much like embarking on a long and meaningful journey, is not just about reaching a destination but about learning how to move through each stage of life with purpose and enjoyment.

After reading Bill Bengen’s A Richer Retirement, I found his updated perspective on the 4% Rule both inspiring and practical. He transforms what was once seen as a strict withdrawal formula into a flexible approach that prioritizes experience, adaptability, and peace of mind.

Bengen’s message is that retirement should not revolve around fear or limitation. Instead, it should be about living fully within realistic financial boundaries. By adjusting withdrawals according to personal goals, market performance, and the natural flow of retirement years, retirees can enjoy their savings as a source of freedom rather than anxiety.

The concept feels much like travel: in some seasons, you venture farther, explore more, and spend a bit extra; in others, you slow down, rest, and savor simplicity. This approach is particularly meaningful for those who dream of traveling during retirement. The early, active years can be dedicated to exploring places like Morocco, when energy and curiosity are at their peak. Later on, spending can naturally shift toward quieter experiences closer to home.

Both Canadians and Americans can apply this mindset using tools such as TFSAs, RRSPs, Roth IRAs, or Social Security planning to balance flexibility and security.

In the end, Bengen’s vision reframes retirement as a phase of freedom, not restriction. It invites people to plan wisely but live fully, creating space for exploration, connection, and purpose much like a well-planned journey that leaves room for discovery along the way. — Nassira Sennoune, Marketing Coordinator, Sun trails

Tax-Efficient Withdrawals add 1-2% to Retirement

The 4% rule is a solid starting point, but after 20+ years advising clients, I can tell you it’s not one-size-fits-all. I’ve seen too many retirees lock themselves into unnecessary restrictions because they treat it like gospel rather than a guideline. 

Here’s what I actually do with clients: we start with 4% as the baseline, then adjust based on their actual spending patterns and market conditions. I had a couple last year who were terrified to spend more than their calculated 4%, even though their portfolio had grown 30% and they were skipping vacations they’d dreamed about for decades. We bumped them to 5.5% for two years because the math worked and life is short: they finally took that trip to Italy. 

The biggest mistake I see isn’t about the percentage itself: it’s that people forget about tax efficiency in withdrawal sequencing. I always look at which accounts to pull from first (taxable vs. tax-deferred vs. Roth) because that can add 1-2% to your effective withdrawal rate without touching principal. One client saved $47,000 over five years just by restructuring their withdrawal order. 

I haven’t read Bengen’s new book yet, but it’s on my list. My practical tweak: build a 2-3 year cash cushion in your portfolio so you’re never forced to sell stocks in a down market. That flexibility alone has kept my clients sleeping well through every correction since 2008. — Winnie Sun, Executive Producer,, ModernMom

Canadian Medical Costs require Flexible Withdrawal Rates

Look, the 4% rule is a decent guideline, but it’s not some magic number you can set and forget. I’ve watched people get into trouble because they didn’t account for medical bills, which are a real wild card here in Canada. I always tell people to build in a cash buffer and check in on that withdrawal rate every couple of years instead of just locking it in permanently. — James Inwood, Insurance Broker, James Inwood

Cash Reserves shield Retirees from Market Volatility

I assist clients with retirement and estate planning.  Bill Bengen’s original 4% rule was first published in 1994 and took into account a balanced investment portfolio modeled back to 1926.  At that time, he projected a 4% withdrawal rate, adjusted annually for inflation, would ensure the portfolio was sustainable for a 30-year retirement.  I recommend my retired clients review their portfolio allocation, investment returns, monitor for annual inflation and expenditures and then make adjustments for the next year’s withdrawals.  

 I plan to read Mr. Bengen’s new book published in August.  Mr. Bengen  is now recommending a broader asset diversification to add in small percentages of international equities and small-cap stocks in addition to his historic investment portfolio of 50% U.S. large-cap stocks and 50% intermediate bonds.  He claims with this broader diversification the safe withdrawal rate could now be up to 4.7% under best case scenario, 4.15% worst case.  I agree with Bengen that broader asset diversification can make sense for retirees who are investment knowledgeable and are monitoring annually the data I’ve noted above.

I recommend to my clients that any rule of thumb such as Bengen is simply a data point.  Retirees need to take into account their own risk profile as well as their investment understanding before making any significant adjustments to their rate of asset withdrawal.   Retirees now have longer life spans and are battling a heightened inflation rate.  I recommend my clients have a flexible withdrawal range of 3.5% to 4.5%, monitor assets annually, and continually adjust their annual withdrawal rate as necessary for volatile markets.   

I also recommend that my clients have a cash account established of at least two years’ withdrawals to avoid having to sell assets in a prolonged negative market environment. — Lisa Cummings, Attorney and Executive Vice President at Cummings & Cummings Law,  Cummings & Cummings

Tax Planning Matters more than Withdrawal Percentages

I’ve spent 40 years managing my own law firm and CPA practice, plus 20 years as a registered investment advisor, so I’ve seen hundreds of retirement plans play out in real life. The 4% rule is a decent starting point, but I stopped treating it as gospel about 15 years into my advisory career.

Here’s what I actually saw with my small business owner clients: their retirement income rarely came from just traditional portfolios. Most had business sale proceeds, real estate holdings, and irregular cash flows that made the 4% rule almost irrelevant. One client sold his manufacturing business at 62 for $2.3 million (US) but kept the building and leased it back: his retirement “withdrawal rate” was completely different because he had guaranteed rental income covering 60% of his expenses. 

The bigger issue I noticed was tax planning around withdrawals. I’d have clients rigidly following 4% from their IRAs while sitting on Roth conversions they should’ve done years earlier, or taking Social Security at the wrong time. The sequence of what you withdraw from matters more than the percentage: I’ve seen people save $50K+ in taxes over retirement just by pulling from taxable accounts first while doing strategic Roth conversions. 

My tweak: forget the percentage and work backward from your actual monthly expenses, then layer in guaranteed income sources (Social Security, pensions, annuities) before touching portfolio money. Most of my retired clients ended up withdrawing 2-3% because they structured things right on the front end. — David Fritch, Attorney,  Fritch Law Office Continue Reading…

CMHC: Why it’s Time to rip off the Bandaid

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By Kevin Fettig
Special to Financial Independence Hub

 

CMHC [Canada Mortgage and Housing Corporation] is unique among federal entities. As a Crown Corporation, it carries out securitization and insurance operations under a corporate mandate while also receiving public funding for federal policy initiatives. Once funding is allocated, CMHC reports to its board rather than the minister responsible on a day-to-day basis.

This differs from the typical departmental reporting model, which has created issues for the PMO, particularly as housing became such a hot-button political issue. Over time, the Department of Infrastructure and Communities evolved into Housing, Infrastructure and Communities, and CMHC’s reporting shifted to the department rather than directly to the minister.

As budgetary spending responsibilities have gradually been peeled away from CMHC, the structure has become more complex and confusing. Policy responsibilities now overlap between the department and CMHC, and some areas – such as addressing homelessness – are jointly managed.

Reducing Chronic Homelessness

A 2022 Auditor General of Canada report found federal efforts to reduce chronic homelessness have been ineffective because departments lack clear accountability for the National Housing Strategy’s target of reducing chronic homelessness by 50 per cent. The report also found that federal departments and CMHC did not know whether their initiatives were effectively improving housing outcomes. In addition, it highlighted a lack of coordination among various federal housing and homelessness programs.

The fragmentation of roles has worsened with the creation of Build Canada Homes, a $13 billion plan to build social housing, starting with development on public land. The initiative is designed to speed up delivery, strengthen Canadian supply chains, and ensure homes are affordable and sustainable over the long term. It focuses on a Canadian, factory-built, net-zero housing platform capable of delivering quickly in major cities, rural communities, and the North.

In the past, CMHC was responsible for social housing programs, typically under Section 95 of the National Housing Act, providing funding for non-profit and co-operative housing. More recently, new initiatives have included the Federal Community Housing Initiative, the Co-operative Housing Development Program, and preservation funding to support asset management planning.

Do 3 agencies make sense for social housing?

Does it make sense to have three agencies responsible for social housing? These agencies have demonstrated poor accountability when responsibilities overlap. Consolidating CMHC’s social housing activity under Housing, Infrastructure and Communities or under Build Canada Homes  could create a more streamlined and cost-effective framework for delivering on policy.

This would allow CMHC to focus on its two commercial mandates – securitization and insurance – while retaining some housing finance activities that require a commercial perspective for reviewing and underwriting loans. Continue Reading…