Each week, Investment Executive lists notable new investment products launched in Canada. Here’s what has come out recently:
- Harvest Portfolios Group Inc.’s new Diversified Monthly Income ETF (TSX: HDIF) began trading Feb. 16. The alternative ETF — which uses a covered call strategy — is comprised of an equal-weight basket of five of Harvest’s existing ETFs. Those funds invest in the technology, health-care, global brands, U.S. banking and utilities sectors. The fund has the ability to invest more than 10% of its net asset value in securities of a single issuer, to borrow cash, to short-sell beyond the limits prescribed for conventional mutual funds and to employ leverage. Its risk rating is medium. The ETF has no management fee but is subject to fees of the underlying ETFs in the portfolio, a Harvest Portfolios spokesperson told Investment Executive.
- Eight Evermore Capital ETFs designed for investors retiring at five-year intervals from 2025 through 2060 began trading Feb. 23 on the NEO Exchange. Touted as the first target-date ETFs in Canada, the Evermore Retirement ETFs invest in a basket of low-fee index ETFs and use a glide-path approach. The asset allocation gradually becomes more conservative as the investor approaches retirement, increasing the percentage of assets allocated to fixed income securities and/or money market investments. The funds have management fees of 0.35% and their risk ratings are low or low to medium.
- Ninepoint Partners LP plans to launch its Energy Income Fund on March 7. The ETF version (NRGI) will trade on the NEO Exchange while mutual fund series units will be available through Fundserv. The alternative fund invests in dividend-paying energy companies located primarily in Canada, and targets 5% dividend income to investors. The fund will use derivatives, which may introduce leverage, and it may also borrow cash and sell securities short. The management fee for the ETF version — and for both the D and F series — is 1.5%. Series A of the mutual fund has a management fee of 2.5%. The fund also pays Ninepoint a quarterly performance fee. The risk rating is high.
- CI Global Asset Management announced Feb. 22 it plans to launch an ETF version of its existing Floating Rate Income Fund. The ETF version is expected to begin trading on April 19. The fund has a risk rating of low to medium and a management fee of 0.35%. It is designed to provide a regular income stream by investing in higher-yielding floating rate debt securities such as bonds and loans, as well as short-term high-yield and investment grade bonds and floating rate preferred shares.
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