Toronto-based First Asset Investment Management Inc. is adding three new exchange-traded funds (ETF) to its lineup based on proprietary indices that Canadian Imperial Bank of Commerce (CIBC), also of Toronto, developed.
“This is a unique opportunity for investors to benefit from a range of quantitative indices designed by one of Canada’s leading index strategy teams, while also enjoying the benefits of the ETF structure, including transparency, tax efficiency, liquidity and low cost,” says Barry Gordon, president and CEO of First Asset, in a statement.
The new ETFs, which began trading on the Toronto Stock Exchange (TSX) on Tuesday, include:
> First Asset U.S. Equity Multi-Factor Index ETF, which is comprised of a portfolio of equities of U.S. companies that exhibit low sensitivity to market fluctuations; high profitability and low leverage; and low price/earnings and price/book characteristics.
> First Asset Canadian Dividend Low Volatility Index ETF, which is comprised of a portfolio of equities of TSX-listed issuers that exhibit low sensitivity to market fluctuations and high dividend yield characteristics.
> First Asset U.S. Tactical Sector Allocation Index ETF, which is comprised of a portfolio of ETFs selected to allocate exposure among equities sectors and short- and mid-term fixed-income investments. The methodology is designed to provide up to 100% exposure to the nine U.S. equity sectors when their momentum is positive and rebalance into short and mid-term fixed=income when the equity sectors are exhibiting negative momentum.
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