(November 21 – 14:35 ET) – Barclays Global Investors Canada Ltd. says that its two new exchange-traded funds, the iUnits Government of Canada 5-Year Bond Fund (TSE: XGV) and the iUnits Government of Canada 10-Year Bond Fund (TSE: XGX) are expected to begin trading November 23 on the Toronto Stock Exchange.

The iG5 Fund seeks to replicate, to the extent possible, the return of a bond issued by the Government of Canada with a five-year term to maturity. The iG10 Fund seeks to replicate, to the extent possible, the return of a bond issued by the Government of Canada with a 10-year term to maturity.

BGI Canada says the funds will distribute interest income to unitholders semi-annually.

“We are extremely pleased to add the world’s first bond ETFs to our highly successful i60 Fund,” said Gerry Rocchi, president of BGI Canada. “These two new products provide investors with a convenient and flexible way to diversify by asset class and, when combined with our i60 Fund and other new iUnits funds, will enable investors to build complete, balanced portfolios based on iUnits.”

BGI Canada says the funds will appeal to mutual fund investors seeking a low expense ratio and certain maturity, and to bond investors seeking an alternative to direct bond purchase for more competitive yield.

The funds’ underwriters, a group of major Canadian investment firms, subscribed for 3,360,000 units of the iG5 Fund with a value of over $91 million, and 3,360,000 units of the iG10 Fund with a value of over $88 million.

The introduction of the funds is part of BGI Canada’s plan to expand its iUnits family. The company has filed a preliminary prospectus for six new iUnits Funds. The funds will consist of a Canadian mid- cap index fund, funds tracking the information technology, energy, financial, and gold sectors, as well as the i60C Fund, an index fund based on the S&P/TSE Capped Index – a constrained market capitalization index. The S&P/TSE 60 Capped Index comprises of the same underlying stocks as the original S&P/TSE 60 Index, but limits the weight of any single stock to 10%.

BGI Canada also unveiled its new Web site at www.iunits.com. The site contains significantly enhanced content and services for investors and financial advisors, including an e-mail alert service and sophisticated fund tracking features. The Web site also includes a new resource centre for financial advisors

“This new site reflects our commitment to ETF education and to supporting iUnits investors and financial advisors,” said Steve Rive, General Manager of BGI Canada’s iUnits Division. “Investors and financial advisors now have a one- stop resource for information on iUnits and ETFs, including more robust, interactive tools for tracking and monitoring iUnits.”
-IE Staff