Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.
- Two passive ETFs from CIBC Asset Management Inc., intended to cover core exposures in a typical asset allocation strategy, started trading on Jan. 23.
- The CIBC Canadian Short-Term Bond Index ETF (TSX: CSBI), designed to replicate the return of the Canadian investment grade short-term bond market, tracks the Morningstar Canada 1-5 Y Core Bond Index. The management fee is 0.07% and the risk rating is low.
- The CIBC U.S. Equity Index ETF – CAD-hedged (TSX: CUEH), designed to replicate the return of the broad U.S. equity market, tracks the Morningstar U.S. Target Market Exposure Hedged CAD Index. The management fee is 0.05% and the risk rating is medium.
- RBC Global Asset Management Inc. launched two active ETFs that write covered call options. The RBC Canadian Dividend Covered Call ETF (TSX: RCDC) and RBC U.S. Dividend Covered Call ETF (TSX: RUDC), which began trading on Jan. 17, invest in Canadian and U.S. stocks, respectively, with above-average dividend yield or good prospects of growing their dividends. ETFs with “enhanced income streams” and “ability to reduce volatility have become attractive to investors,” RBC GAM co-head of North American equities Stu Kedwell said in a release. Both products have a management fee of 0.64% and a medium risk rating. Covered call funds are expected to be more popular this year as investors look for yield amid a challenging macro environment.
- Four passive ETFs from CI Global Asset Management, for investors seeking companies with strong performance during market downturns, started trading on Jan. 24. The ETFs “seek to minimize downside volatility — as opposed to total volatility,” CI GAM executive vice-president and head of distribution Roy Ratnavel said in a release.
- The CI Global Minimum Downside Volatility Index ETF, available in hedged (TSX:CGDV) and unhedged (TSX: CGDV.B) versions, tracks Solactive indexes of developed-market issuers with lower downside volatility than broader developed equity markets. The management fee is 0.35% and the risk rating is low to medium.
- The CI U.S. Minimum Downside Volatility Index ETF, available in hedged (TSX:CUDV) and unhedged (TSX: CUDV.B) versions, tracks Solactive indexes of U.S. companies that exhibit a lower downside volatility than the broader U.S. equity market. The management fee is 0.30% and the risk rating is medium for the hedged version and low to medium for the unhedged version.
- BMO Global Asset Management launched a fund on Jan. 13 for accredited investors looking for exposure to privately held technology companies. The BMO Georgian Alignment II Access Fund LP invests in North American software companies with “attractive growth prospects” in areas such as cybersecurity, social engagement and industrial automation, and “could play an important role in appropriately diversified portfolios,” BMO GAM said in a release.
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