(HBF) Harvest Brand Leaders Plus - Ratings and Ratios

The Harvest Brand Leaders Plus Income ETF (HBF) is designed to deliver a trifecta of benefits to its Unitholders: regular monthly income, potential for long-term capital appreciation, and reduced portfolio volatility compared to directly holding the underlying Brand Leaders equity securities.

To achieve its objectives, the ETF employs a covered call writing strategy on up to 33% of its portfolio holdings, adjusting the level of option writing based on market conditions, such as volatility. This tactical approach aims to mitigate potential downsides while still allowing for upside participation.

By focusing on US Equity with a benchmark against the Morningstar US Market TR CAD Index, HBF provides Canadian investors with a diversified portfolio of prominent US brand leaders. The fund is managed by Harvest Portfolios, a firm with expertise in income-generating and actively managed ETFs.

Analyzing the ETFs recent performance and technical indicators, we observe that the last price is $9.43, slightly above its 50-day Simple Moving Average (SMA) of $9.43 and 20-day SMA of $9.29, indicating a potential bullish trend. The Average True Range (ATR) of 0.19, or 2.05%, suggests moderate volatility. Given the current price is near its 50-day SMA and below its 200-day SMA of $9.59, we can anticipate a potential resistance level around $9.59. If the ETF can break through this level, it may signal a further upward trend, potentially targeting the 52-week high of $10.22.

Using both technical and fundamental data, a forecast for HBF could be constructed. With an Assets Under Management (AUM) of $450.70M CAD, the ETF has a substantial enough size to be considered viable for investment. Considering the covered call strategy and the current technical indicators, a potential short-term target could be the 52-week high, assuming market conditions remain favorable and volatility stays in check. However, if market volatility increases, the ETFs covered call strategy may help mitigate potential losses, making it a potentially attractive option for income-seeking investors looking to manage risk.

Given the current technical setup and the ETFs investment strategy, a likely forecast is that HBF will continue to provide stable monthly distributions and potentially appreciate in value if it can surpass the $9.59 resistance level. Investors should monitor market volatility and adjustments in the covered call writing strategy, as these factors will be crucial in determining the ETFs short-term performance.