Toronto-based BlackRock Asset Management Canada Ltd. Monday announced the addition of the iShares Core Short Term High Quality Canadian Bond Index ETF (TSX:XSQ) to its iShares Core Series.

This new exchange-traded fund (ETF) will deepen the fixed income opportunities within the Core Series by offering investors low-cost exposure to high quality, liquid, short duration Canadian bonds (1-5 years), with a credit rating of A or higher.

XSQ has an annual management fee of 0.12%. XSQ has now closed the initial offering of its units, which began trading on the Toronto stock exchange on Monday.

“In an environment where rising rates are on the horizon, investors are reconsidering how best to access bonds,” said Noel Archard, managing director, head of BlackRock Canada, in a release. “With the addition of XSQ to our iShares Core Series, Canadian investors will have low-cost access to high quality short duration bonds that are well-suited for the long term as well as for managing against this potential risk.”

XSQ will provide diversified bond exposure with a weighting of 60 per cent government bonds and 40 per cent corporate bonds. The fund will capture the short end of the Canadian bond universe by seeking to replicate, to the extent possible, the performance of the FTSE TMX Canada Liquid Short Term Capped Bond Index.

Launched in March 2014, the iShares Core Series for Canadian investors was designed to make it easier for the long-term investor to identify the investments suitable for the core of their portfolio. To further strengthen this effort, effective July 16, the funds in the Core Series have been renamed to include “Core” directly in the fund name, as set out below.

Ticker

Former Fund Name

New Fund Name

XIC

iShares S&P/TSX Capped Composite Index ETF

iShares Core S&P/TSX Capped Composite Index ETF

XEI

iShares S&P/TSX Equity Income Index ETF

iShares Core S&P/TSX Composite High Dividend Index ETF

XQB

iShares High Quality Canadian Bond Index ETF

iShares Core High Quality Canadian Bond Index ETF

XSH

iShares Canadian Short Term Corporate + Maple Bond Index ETF

iShares Core Canadian Short Term Corporate + Maple Bond Index ETF

XLB

iShares Canadian Long Term Bond Index ETF

iShares Core Canadian Long Term Bond Index ETF

XUS

iShares S&P 500 Index ETF

iShares Core S&P 500 Index ETF

XSP

iShares S&P 500 Index ETF (CAD- Hedged)

iShares Core S&P 500 Index ETF (CAD- Hedged)

XEF

iShares MSCI EAFE IMI Index ETF

iShares Core MSCI EAFE IMI Index ETF

XEC

iShares MSCI Emerging Markets IMI Index ETF

iShares Core MSCI Emerging Markets IMI Index ETF

Effective July 21, the TSX ticker symbols for the Common Units and the Advisor Class Units of the iShares Core High Quality Canadian Bond Index ETF have also changed. CAB becomes XQB and CAB.A becomes XQB.A.