Yield Shares by Purpose is an innovative suite of ETFs that allows investors to earn monthly income while maintaining exposure to the long-term growth potential of their favourite stocks.

Yield Shares generate monthly income using a covered call strategy on 50% of the Net Asset Value (NAV) along with some modest leverage. The monthly distributions received by investors are a combination of option premiums and dividends (if available).

A covered call strategy involves holding an underlying stock while selling call options on the position. In exchange for limiting some upside potential, the strategy generates premium income, which can enhance returns and mitigate volatility.

Yield Shares employ a broadly diversified covered call strategy on up to 50% of the ETF’s NAV, strategically managing maturity risk, fundamental factors, and market events to maximize income.

Yield Shares are suitable for investors looking to:

• Receive monthly income while retaining equity exposure to their favourite stocks.

• Gain exposure to leading U.S. companies while investing in Canadian dollars.

• Benefit from a unique and diversified covered call writing strategy.

• Add an alternative source of returns in a low-yield environment.

While individual stocks help investors participate in a company’s growth, Yield Shares allow them to also earn monthly income through existing holdings or new exposure.

Yield Shares aim to provide reliable and consistent income distributions. While distribution levels may fluctuate with market conditions, we are committed to delivering the best possible income experience.

No. Yield Shares ETFs are domiciled in Canada, so Canadian investors are not subject to U.S. withholding tax on distributions.

Yield Shares generate monthly income that is classified as capital gains or ROC, giving investors favourable tax treatment.

Unlike other single-stock ETFs that prioritize high income at the expense of long-term growth, Yield Shares use a systematic covered call strategy to maximize yield while preserving long-term growth potential.

Investors can sign up for our newsletter (here), follow our social media channels, or regularly check our website for the latest performance reports and distribution announcements.