Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here’s the latest:
- Evolve Funds Group Inc. launched broad index ETFs on Jan. 10 with covered-call strategies for enhanced income and lower volatility. The Evolve S&P/TSX 60 Enhanced Yield Fund (TSX: ETSX) and the Evolve S&P 500 Enhanced Yield Fund (TSX: ESPX) can write covered-call options on the underlying securities on up to 33% of the portfolio. ESPX has both a hedged and an unhedged ETF version (TSX: ESPX.B), and Evolve plans to launch two accompanying unhedged mutual fund series for each ETF. Management fees are 0.45% for both the ETFs and F series, and 1.45% for the A series. Both funds carry a medium risk rating. “We expect that covered call funds will continue to attract attention this year as investors look for enhanced income, tax efficient yield, and strategies that can help cushion some downside risk within their portfolios,” Evolve president and CEO Raj Lala said in a release.
- About a year after its launch, the Evolve Enhanced FANGMA Index ETF (TSX: TECE), which had assets under management of $2.5 million as of Jan. 9, will close on or about April 14, Evolve announced on Friday. TECE gives clients exposure – with up to 25% leverage — to Meta Platforms Inc. (Facebook), Amazon Inc., Netflix Inc., Alphabet Inc. (Google), Microsoft Corp. and Apple Inc. — by tracking a 1.25 times multiple of the performance of the Solactive FANGMA Equal Weight Index Canadian Dollar Hedged. Evolve also raised the risk rating of TECE to high, up from medium to high.
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