Canada’s 2025 federal budget was introduced under the theme “Building Canada Strong.” The plan focuses on strengthening the country’s long-term economic growth by investing in key areas such as clean electricity, critical minerals, housing construction, and innovation in industries like artificial intelligence and advanced manufacturing.

For investors, especially those nearing or in retirement, these initiatives highlight sectors that may support long-term economic stability and investment opportunities in Canada.

Canada’s Market Strength: Built on Reliable Industries

Canada’s stock market is supported by several powerful sectors that have historically provided resilience, steady growth, and reliable dividends.

Unlike the United States, where market gains in recent years have been driven heavily by technology and artificial intelligence, Canada benefits from strength across multiple industries. The Canadian market is largely led by financials, energy, materials, and technology.\

This broad foundation has supported strong performance. Over the past year, the S&P/TSX Composite Index has climbed roughly 35%, compared with 17% for the S&P 500.

Sources: S&P 500 data: multpl.com (Standard & Poor’s) | S&P/TSX Composite data: Yahoo Finance, Guru Focus, Trading Economics.

For long-term investors, particularly retirees seeking income and diversification, this mix of industries can help create a more balanced portfolio.

Canada’s Big Six Banks: A Foundation for Income

Canada’s six largest banks are widely recognized for their stability and long history of dividend
payments:

• • Royal Bank of Canada
  • Toronto-Dominion Bank
  • Bank of Montreal
  • Scotiabank
  • Canadian Imperial Bank of Commerce
  • National Bank of Canada

These institutions operate large, diversified businesses and maintain strong balance sheets. Several of them manage over $2 trillion in assets, and they have consistently generated reliable earnings growth.

Canadian banks have also benefitted from higher interest rates in recent years, which have helped strengthen their profitability. As a result, they remain core holdings for many investors seeking consistent dividend income.

The Harvest Premium Yield Canadian Bank ETF (TSX: HPYB) provides equal exposure to the Big Six banks and is designed to deliver cash distributions twice each month. The ETF uses an actively managed options strategy to help generate additional income while aiming to reduce volatility.

Energy, Utilities, and Telecom: Essential Businesses

Canada is home to several companies in industries that provide essential services; energy, utilities, and telecommunications.

Canada remains one of the world’s largest energy producers, with a strong oil and gas sector supported by global demand. Many energy companies generate significant cash flow and have long records of paying dividends.

Utilities also play a key role in income-focused portfolios. These companies provide services such as electricity, natural gas, and water, services that households and businesses rely on every day.  Since demand remains steady and the industry is regulated, utilities often deliver predictable earnings and stable dividends.

Canada’s telecommunications industry is similarly concentrated among a small number of large providers. Building nationwide networks requires enormous investment, creating significant barriers for new competitors.

Investors can access many of these companies through the Harvest Canadian Equity Income Leaders ETF (TSX: HLIF), which focuses on Canadian businesses with strong dividend histories and combines them with a covered call strategy designed to generate consistent monthly income.

The fund includes companies with remarkable dividend records, including Canadian Utilities and Fortis, which have increased their dividends for more than 50 consecutive years.

Canadian Growth Stories: Technology and Resources

Canada is also home to several growth companies and resource leaders.

One of the country’s most prominent technology success stories is Shopify, a global e-commerce platform that has benefitted from the rapid expansion of online shopping. E-commerce represented about 15% of retail sales in 2019, rising to 22% by 2022, with expectations that it could reach 27% by 2026.

Investors seeking exposure to Shopify with an income-focused strategy can consider the Harvest Shopify Enhanced High Income Shares ETF (TSX: SHPE), which uses an options strategy designed to generate high monthly income.

Canada is also a major global producer of precious metals. Gold and silver prices have surged in recent years, driven by geopolitical uncertainty, central bank buying, and strong industrial demand.

The Harvest Agnico Eagle Enhanced High Income Shares ETF (TSX: AEME) provides exposure to a leading Canadian gold producer while also using an income-generating options strategy.

Accessing Canada’s Leading Companies

For investors looking for diversified exposure to Canada’s strongest businesses, the Harvest Canadian High Income Shares ETF (TSX: HHIC) offers a multi-sector portfolio that includes companies such as Shopify, Agnico Eagle, TD Bank, and Enbridge.

The ETF is designed to combine exposure to leading Canadian companies with income-focused strategies, helping investors generate regular cash flow while maintaining long-term growth potential.

For retirees and those approaching retirement, that balance of income, stability, and growth can be an important part of building a resilient portfolio.

Disclaimer
… The information is meant to provide general information for educational purposes. Any security mentioned herein is for illustration purposes and should not be taken as an invitation to purchase or sell such security. Please read the relevant prospectus before investing.

Certain statements included in this communication constitute forward-looking statements (“FLS”), including, but not limited to, those identified by the expressions “expect”, “intend”, “will” and similar expressions to the extent they relate to the Fund. The FLS are not historical facts but reflect Harvest’s, the Manager of the Fund, current expectations regarding future results or events. These FLS statements are subject to a number of risks and uncertainties that could cause actual results or events to differ materially from current expectations. Although Harvest, the Manager of the Fund, believes that the assumptions inherent in the FLS are reasonable, FLS are not guarantees of future performance and, accordingly, readers are cautioned not to place undue reliance on such statements due to the inherent uncertainty therein. Harvest, the Manager of the Fund, undertakes no obligation to update publicly or otherwise revise any FLS or information whether as a result of new information, future events or other such factors which affect this information, except as required by law.

Commissions, management fees and expenses all may be associated with investing in Harvest Exchange Traded Funds managed by Harvest Portfolios Group Inc. (the “Funds”). Please read the relevant prospectus before investing. The Funds are not guaranteed, their values change frequently, and past performance may not be repeated. Distributions are paid to you in cash unless you request, pursuant to your participation in a distribution reinvestment plan, that they be reinvested into available Class units of the Fund you own. If a Fund earns less than the amounts distributed, the difference is a return of capital.