For many Canadian investors, the starting point of a long-term portfolio is Canada’s Big Six banks. The Canadian Bank industry is regarded as having diversified, established business models and stable fee-based income streams, which are supported by their strong credit fundamentals and strength of financial performance indicators.1 Yet even with these advantages, income-focused investors face familiar challenges. Dividend yields from the banks may not always keep pace with rising expenses. Fixed income options such as bonds and GICs offer stability but can lack the level of cash flow that many households now seek, especially when inflation, taxes, and retirement spending needs place growing pressure on budgets.

At the same time, investors may not want to step away from the comfort and familiarity of the Big Six. Many Canadians prefer to invest in companies they know and trust, and the Big Six banks fit that preference.

Introducing SIXY: Evolve Big Six Canadian Banks UltraYield Index ETF

That demand—wanting to maintain exposure to Canadian banks while drawing more income from them—is why we’re excited to introduce the Evolve Big Six Canadian Banks UltraYield Index ETF (SIXY). SIXY is bank investing with a new twist: modest leverage applied to an equal-weighted portfolio of Canada’s Big Six banks with a covered-call program to enhance yield.

How SIXY’s covered-call strategy generates income

A covered call strategy, as used in SIXY, begins with the fund owning shares of Canada’s Big Six banks—RBC, TD, BMO, Scotiabank, CIBC, and National Bank. The fund then writes (sells) call options on some of those bank holdings. The buyers of those options pay a premium, and that premium becomes a source of cash flow for the fund.2

Those option premiums, combined with the banks’ regular dividends, are distributed to investors and help increase the overall yield of the ETF. The premiums can also offer a modest buffer in periods of market volatility, because they can provide income even when share prices move sideways or decline modestly. The trade-off is that by writing call options, the fund may give up some upside if the bank stocks rise above the option strike prices. Combined with the fund’s 1.33x modest leverage, SIXY’s covered call strategy aims to enhance yield and participation in rising markets while still maintaining an income-focused risk profile.

Enjoy twice per month distributions with SIXY

SIXY pairs its covered call approach with twice per month distributions, offering investors a more predictable stream of cash flow than traditional quarterly or annual payouts. For many Canadians, this payment schedule can make a meaningful difference. Retirees who rely on their portfolios for regular income may find twice-monthly distributions easier to align with household bills and pension timing. Investors covering ongoing living expenses can use the more frequent cash flow to smooth out their budgeting, while those still building their portfolios may prefer the ability to reinvest smaller amounts more regularly. By smoothing income throughout the month, SIXY aims to make portfolio cash flow more manageable and more adaptable to real-world financial needs.

Think banks. Think income. Think SIXY.

Stay invested in familiar names you trust while drawing more consistent income from Canada’s Big Six banks. The Evolve Big Six Canadian Banks UltraYield Index ETF (SIXY) aims to offer investors modestly levered exposure (1.33x) to a portfolio of Canada’s Big Six banks while generating enhanced income through a covered call strategy. The level of the covered call strategy may vary based on market volatility and other factors.

For more information on this fund, visit https://evolveetfs.com/product/sixy/. To stay updated with insights on investing and investment products, sign up for our weekly newsletter here.

ENDNOTES

1. “Canadian Bank Ratings to Withstand Slower Growth, Higher Provisions,” Fitch Ratings, August 26, 2025; https://www.fitchratings.com/research/banks/canadian-bank-ratings-to-withstand-slower-growth-higher-provisions-26-08-2025
2. Tran, L. A., “Should you own covered‑call ETF,” Morningstar Global, March 25, 2025; https://global.morningstar.com/en-ca/etfs/should-you-own-covered-call-etf

DISCLAIMER

Published December 12, 2025.

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. Evolve Big Six Canadian Banks UltraYield Index ETF (“SIXY”) is offered by Evolve Funds Group Inc., and distributed through authorized dealers.

The information contained herein is a general description and is not intended to be specific investment advice to any particular investor nor intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information contained herein is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, it is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found on the Evolve Funds Group Inc website at https://evolveetfs.com/

Leverage increases risk.

Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded funds (ETFs). Please read the prospectus before investing. ETFs are not guaranteed, their values change frequently and past performance may not be repeated.

Certain statements contained herein are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what Evolve Funds Group Inc. and the portfolio manager believe to be reasonable assumptions, neither Evolve Funds Group Inc. nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.

Certain information contained in this document is obtained from third parties. Evolve Funds Group Inc. believes such information to be accurate and reliable as of the date hereof, however, we cannot guarantee that it is accurate or complete or current at all times. The information provide