iShares has launched two new exchange traded funds on the Toronto Stock Exchange (TSX) providing investors with low-cost exposure to the mid-capitalisation sector of the US equity market.
The units of the iShares S&P US Mid-Cap Index ETF (XMC), which offers an unhedged version of the exposure, and iShares S&P US Mid-Cap Index ETF (CAD-Hedged) (XMH), a Canadian hedged version, each have a management fee of 0.15 per cent.
With the launch of these two funds, the iShares line-up now includes a comprehensive range of US equity exposures, including total market, and large, mid and small-cap exposure. The two new funds, XMC and XMH, will provide investors with low-cost access to a specific segment of the US stock market that has historically outperformed small-cap and large-cap stocks over the long-term(1).
"In the continued search for growth, the addition of XMC and XMH provides Canadian investors with access to a dynamic segment of the US equity market, and rounds out iShares' US equity portfolio," says Pat Chiefalo, Managing Director, Head of Product for BlackRock Canada's iShares business. "Given their unique place within the corporate lifecycle, mid-cap companies can deliver attractive risk/return prospects for the long-term investor."
XMC and XMH will seek to provide long-term capital growth by replicating, to the extent possible, the performance of the S&P MidCap 400 Index and the S&P MidCap 400 CAD Hedged Index, respectively, net of expenses. Under normal market conditions, each fund will primarily invest in securities of one or more ETFs managed by BlackRock Canada or an affiliate and/or directly in US equity securities. XMH will seek to hedge any resulting US dollar or other foreign currency exposure, as applicable, back to Canadian dollars.