Product roundup: Proliferation of single-stock ETFs ramps up

• Purpose TD (TD) Yield Shares ETF (Cboe: TDY)
• Purpose RBC (RY) Yield Shares ETF (Cboe: RBCY)
• Purpose Scotiabank (BNS) Yield Shares ETF (Cboe: BNSY)
• Purpose Enbridge (ENB) Yield Shares ETF (Cboe: ENBY)
• Purpose Shopify (SHOP) Yield Shares ETF (Cboe: SHPY)
• Purpose Canadian Natural Resources (CNQ) Yield Shares ETF (Cboe: CNQY)
• Purpose TELUS (T) Yield Shares ETF (Cboe: TY)
• Purpose Dollarama (DOL) Yield Shares ETF (Cboe: DOLY)
• Purpose Couche-Tard (ATD) Yield Shares ETF (Cboe: ATDY)
• Purpose Brookfield (BN) Yield Shares ETF (Cboe: BNY)

The new ETFs employ a covered call strategy on 50% of the portfolio, combined with 25% leverage, in an aim to provide investors with “enhanced” monthly income compared to their underlying stocks, a release said. They each have a 0.4% management fee.

The funds are the latest addition to the firm’s Yield Shares product lineup, which launched nearly three years ago with a focus on U.S. stocks.

They also come to market the same week that Ninepoint Partners LP and Harvest Portfolios Group Inc. launched their own single-stock ETFs that invest in Canadian companies. Those products similarly employ a covered call strategy and modest leverage.

Evolve plans to roll out new U.S. equity ETF

Evolve Funds Group Inc. says it has filed a preliminary prospectus to list a new U.S. equity ETF that uses a covered call strategy and modest leverage.

If approved, the Evolve US Equity UltraYield ETF would be listed on the TSX with the ticker symbol BIGY for its Canadian-dollar-hedged units, BIGY.B for its unhedged units and BIGY.U for its U.S.-dollar-unhedged units.

The fund will invest in an equal-weight portfolio of “leading U.S. securities that have the potential to generate significant option premiums,” a release said. The level of covered call option writing may vary based on several factors including market volatility.

Evolve said the maximum aggregate leverage of the fund would not exceed approximately 33% of its net-asset value. The ETF would also pay distributions at least twice a month, with the possibility of more frequent distributions.

Invesco terminating funds, including multiple ESG funds

Invesco Canada Ltd. says it plans to terminate several funds as it seeks to simplify its product offerings and focus on areas of “highest client demand.”

In a release Wednesday, the firm said it’s planning to terminate one of its mutual funds, the Invesco S&P/TSX Composite ESG Index ETF Class, on Dec. 3. The fund is now closed to all investments.

It’s also planning to terminate the following ETFs on or about Dec. 12:

• Invesco ESG Nasdaq Next Gen 100 Index ETF (TSX: QQJE, QQJE.F)
• Invesco Fundamental High Yield Corporate Bond Index ETF (TSX: PFH.F)
• Invesco Low Volatility Portfolio ETF (TSX: PLV)
• Invesco S&P 500 ESG Tilt Index ETF (TSX: ISTE, ISTE.F)
• Invesco S&P International Developed ESG Tilt Index ETF (TSX: IITE, IITE.F)
• Invesco S&P US Total Market ESG Tilt Index ETF (TSX: IUTE, IUTE.F)
• Invesco S&P US Total Market ESG Index ETF (TSX: IUCE, IUCE.F)
• Invesco S&P/TSX 60 ESG Tilt Index ETF (TSX: IXTE)
• Invesco S&P/TSX Composite ESG Tilt Index ETF (TSX: ICTE)

The ETFs will be listed on the TSX until the close of business on or about Dec. 8, when they are expected to cease trading and be delisted, the release noted.

No further subscription orders for units of the ETFs will be accepted after the close of business on Nov. 26. Unitholders of the ETFs, however, may continue to submit requests to exchange units until the close of business on or about Dec. 5, and redeem units until Dec. 12.

The upcoming terminations of the ESG-based funds, in particular, come amid a series of delistings of ESG funds. In recent years, the ESG theme has fallen out of favour among some investors due to anti-ESG sentiment in the U.S., which has spread up north, as well as a lack of consistent metrics associated with the funds.

Invesco said the objective of the terminations is “to simplify the firm’s product offerings to enable it to sharpen the focus on areas of highest client demand. Another benefit will be increased capacity to provide better service and support while investing in those high demand products.”

On a separate note, Invesco announced the launch of series W units of the Invesco Global Companies Fund.

Mackenzie launches new U.S. equity ETFs

Mackenzie Investments has launched two new ETFs that seek to capitalize on growth in the U.S. equities market.

The new Mackenzie GQE US Alpha Extension ETF (TSX: MALX) and Mackenzie NASDAQ 100 Index ETF (TSX: QQQQ) began trading on the TSX on Tuesday.

MALX uses the same investment strategy and approach as a Mackenzie mutual fund with the same name. Both products aim to use a quantitative investment approach that involves long and short positions in an effort “to enhance alpha potential for portfolios with U.S. equity inclusion,” a release said.

QQQQ tracks the Nasdaq 100 index, providing exposure to the 100 largest companies listed on the Nasdaq “from a range of industries, including manufacturing, technology and health care and helps diversify and complement portfolios while working to meet a range of investment objectives,” said Prerna Mathews, Mackenzie’s vice-president, ETF product and strategy, in the release.

Manulife, CENTUM to expand on mortgage products, services

Manulife Canada and Centum Financial Group Inc. (CENTUM) have announced the renewal and expansion of their partnership, which they say will bring new products and services to support mortgage professionals and the Canadians they serve.

As part of their partnership, CENTUM agents will gain access on Sept. 1 to a new group RRSP program offered through Manulife and administered through CENTUM’s proprietary DirectPay platform, a release said.

The partnership will also see CENTUM agents continue to offer Manulife’s Mortgage Protection Plan, a life and disability insurance product that covers mortgage payments for homeowners in the event of unexpected events, along with Manulife Bank mortgage solutions, including Manulife One.