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ETF UPDATE NEWS BRIEFS CI GAM launches its first suite of passive ETFs on the NEO Exchange
CI Global Asset Management has introduced its first-ever suite of passive ETFs on the NEO Exchange. The new CI Beta ETFs, all of which track Solactive indexes, include the CI Canadian Equity Index ETF (CCDN), which offers broad exposure to the Canadian market; the CI Global Healthcare Leaders Index ETF (CHCL.B), which provides exposure to the 150 largest companies in the global healthcare industry; the CI US 500 Index ETF (CUSA.B), which invests in the 500 largest companies in the US stock market; and the CI US 1000 Index ETF (CUSM.B), which targets the 1,000 largest companies in the US stock market.
RBC iShares introduces two sustainable bond ETFs
RBC iShares has reinforced its offering of sustainable bond strategies with two new ETFs. Trading on the TSX, the iShares ESG Advanced 1-5 Year Canadian Corporate Bond Index ETF (XSHG) and iShares ESG Advanced Canadian Corporate Bond Index ETF (XCBG) track the performance of investment-grade debt from Canadian issuers with more sustainable business practices than their peers, while excluding industries with elevated sustainability-related risks.
Horizons rolls out the first semiconductor ETF in Canada
Horizons ETFs has launched Canada’s first ETF to offer exposure solely to the global semiconductor industry. The Horizons Global Semiconductor Index ETF (CHPS) invests in companies with a minimum market cap of US$1 billion that develop and manufacture
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semiconductors for consumer electronics, automobiles and more. Horizons president and CEO Steve Hawkins described the new ETF as “a way to get exposure to technology without necessarily worrying about what the next latest and greatest trend is, because more than likely, some form of semiconductor is powering that technology.”
BMO adds ETF series to its US all-cap equity strategy
BMO Investments has launched an ETF series of the BMO US All Cap Equity Fund. Trading on the TSX under the ticker symbol ZACE, the ETF offers exposure to a strategy managed by Brian Belski, chief investment strategist at BMO Capital Markets. It aims to provide long-term capital growth primarily through investments in US equity issuers of any size, using a model that encapsulates Belski’s latest US strategy research, which covers the S&P 1500 and a variety of sectors, industries, and style preferences.
Dynamic Funds adds two new offerings to its active ETF lineup
Dynamic Funds has added two new active ETFs to its product shelf. The Dynamic Active Energy Evolution ETF (DXET) seeks long-term capital appreciation and income from companies involved in renewable energy or related activities around the globe. The Dynamic Active Emerging Markets ETF (DXEM) targets long-term capital appreciation by investing in equity securities of companies located or doing business in emerging markets. Dynamic Funds managing director Mark Brisley said the new ETFs target “two exciting areas of the market … where clients don’t typically have much exposure.”
Addressing retirement income Vanguard believes its low-cost income solution tackles a key concern of investors who are close to retirement With the prolonged low interest rate environment, many advisors have been looking at diversified ways to supplement income. While there are options for those in the accumulation phase, there are fewer solutions when it comes to decumulation – which is what Vanguard is aiming to address with its Retirement Income ETF (VRIF). “We looked to design a product that provides stability, diversification across fixed income and equities, and sustainable income for investors,” says Tim Huver, head of intermediary sales at Vanguard Canada. “VRIF is an ETF of ETFs, a mix of equity and fixed income at a low cost. It is one of the fastest-growing products in our range and the industry and has consistently achieved a 4% return.” Part of the reason VRIF has been able to find success is its make-up. Huver notes that advisors might be reluctant to look at lower-quality credit or move further into equities in the search for yield, as this comes with increased volatility. When Vanguard launched VRIF in September 2020, the ETF had a 50/50 fixed income/equity split. It has remained close to that, now leaning slightly higher on the fixed income side. “We have the ability with guardrails to move
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17/09/2021 4:49:24 AM
