A new bond ETF focused on emerging markets began trading on the Toronto Stock Exchange on Thursday.
The Mackenzie Emerging Markets Bond Index ETF (CAD-Hedged) offers investors exposure to emerging market debt by investing primarily in U.S.-denominated emerging market government bonds and government-related bonds, Toronto-based Mackenzie Investments said in a release.
The ETF hedges foreign currency back to the Canadian dollar, and seeks to replicate the performance of the Solactive EM USD Govt & Govt Related Bond Select CAD Hedged NTR Index. It has a management fee of 0.45%.
Mackenzie also announced two fund mergers on Thursday that have received investor approval.
On or about Aug. 16, the Mackenzie Canadian Balanced Fund will be terminated and merged into the Mackenzie Strategic Income Fund, and the Mackenzie US Strategic Income Fund will be merged into the Mackenzie Global Strategic Income Fund.
Investors also approved changes to the investment objectives of the Mackenzie Canadian Resource Fund. The changes will also take effect on or about Aug. 16, at which time the fund will be renamed the Mackenzie Global Resource Fund.