Toronto-based Mackenzie Financial Corp. is launching a new smart beta ETF and mutual fund that provide exposure to the emerging markets.
Mackenzie Maximum Diversification Emerging Markets Index ETF is currently trading on the Toronto Stock Exchange and Mackenzie High Diversification Emerging Markets Equity Fund will be publicly available on or around Jan. 25.
The management of both products will be based on Paris-based TOBAM Core Investments’ investing process, which is designed to protect portfolios from structural bias and unmanaged risks often found in cap-weighted indices.
Mackenzie Maximum Diversification Emerging Markets Index ETF seeks to replicate, to the extent reasonably possible, the performance of the TOBAM Maximum Diversification Emerging Markets Index. The ETF invests primarily in emerging-market equities.
“This new Maximum Diversification Emerging Markets Index ETF expands the suite of offerings to offer choice and help investors aiming to achieve superior performance with lower risk over reasonable periods of time,” says Michael Cooke, senior vice president and head of ETFs at Mackenzie, in a statement.
Mackenzie High Diversification Emerging Markets Equity Fund’s core investment will be in Mackenzie Maximum Diversification Emerging Markets Index ETF and it may also invest in other ETFs, or in securities directly, from time to time for active risk management purposes, according to the announcement.
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