What’s new and what’s out from the fund manufacturers

Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here’s the latest:

• Clients who are bullish on copper can now buy an ETF that specializes in copper producers. Horizons ETFs Management (Canada) Inc. launched the Horizons Copper Producers Index ETF (TSX: COPP) on May 17. The ETF intends to replicate the Solactive North American Listed Copper Producers Index, providing exposure to companies active in copper ore mining. “With the demand driven by the green energy and electric vehicle boom, copper could continue to benefit from its usage in the cutting-edge technologies of tomorrow,” Horizons ETFs CEO Steve Hawkins said in a release. The fund’s risk rating is high and its management fee is 0.65%.
• Fidelity Investments Canada ULC added to its portfolio fund lineup on May 18 with the Fidelity Global Equity Portfolio. The portfolio invests in Fidelity mutual funds and ETFs that offer exposure to Canadian, American, developed international and emerging markets equities in both value and growth investing styles. The fund has a risk rating of medium and a management fee of 0.85% for series F. It also comes in a corporate class version.
• Fidelity and CI Global Asset Management this month became the latest providers to enter the metaverse, following launches last year from Evolve Funds and Horizons ETFs.
  • The Fidelity Total Metaverse Index ETF (NEO: FMTV) started trading May 18, and Fidelity also launched an accompanying mutual fund. Sub-advised by Geode Capital Management LLC, the products seek to replicate the Fidelity Canada Total Metaverse Index, providing exposure to companies driving “the experiences, capabilities, and economy of the metaverse,” a release said. The products’ risk rating is high. The ETF has a management fee of 0.5%, while the mutual fund’s management fees is 0.5% for series F.
  • The CI Galaxy Metaverse ETF (TSX: CMVX), launched May 3, tracks the Alerian Galaxy Immersive Digital Worlds Hedged to CAD Dollars Index. “The metaverse promises to transform how people interact, work and play, thereby presenting exciting opportunities for investors,” CI GAM said in a release. The fund has a high risk rating and a 0.5% management fee.
• CI also joined the blockchain ETF party, releasing the CI Galaxy Blockchain ETF (TSX: CBCX) on May 3. The fund tracks the Alerian Galaxy Global Cryptocurrency-Focused Blockchain Equity Hedged to CAD Dollars Index, which is focused on companies engaged in cryptocurrency mining, buying and selling cryptocurrency assets, providing semiconductors and providing cryptocurrency mining machines. The risk rating is high and the management fee is 0.5%.

Fund closures

• Harvest Portfolios Group Inc. plans to wind up a pair of innovation-themed ETFs it launched just last year. The Harvest Digital Sports & Entertainment Index ETF, which started trading in November, sought to take advantage of the e-gaming and online sports betting trends. As of March 31, the fund’s net asset value was $3.7 million and its largest holding was meme stock GameStop Corp. It’s also closing the Harvest Space Innovation Index ETF. Launched in March 2021 and touted as a Canadian first, the fund invested in companies involved in the space industry, including space flight and tourism. The fund’s net asset value was $4.3 million on March 31.
• Three CIBC multifactor equity ETFs are now on the road to Valhalla. CIBC Asset Management Inc. said it plans to terminate the CIBC Multifactor Canadian Equity ETF (TSX: CMCE) and the CIBC Multifactor U.S. Equity ETF (common and hedged units). Originally listed in January, 2021, the products are scheduled to be terminated on July 29.
• Fidelity Investments Canada ULC said it plans to terminate two U.S. high yield bond ETFs and accompanying funds as of Aug. 19: the Fidelity Systematic U.S. High Yield Bond ETF (Ticker: FCHY) and fund, and the Fidelity Systematic U.S. High Yield Bond Currency Neutral ETF (Ticker: FCHH) and fund.