Manulife has launched a suite of multifactor exchange traded funds (ETFs), sub-advised by Dimensional Fund Advisors Canada ULC, on the Toronto Stock Exchange.
The new ETFs are the Manulife Multifactor Canadian Large Cap Index ETF, the Manulife Multifactor US Large Cap Index ETF, the Manulife Multifactor US Mid Cap Index ETF, and the Manulife Multifactor Developed International Index ETF.
The indices that these ETFs are designed to track were developed by Dimensional, a specialist in multifactor investing, using Dimensional's proprietary Index Memory technique.
"What distinguishes Dimensional is our commitment to implementing the great ideas in finance," says Eduardo Repetto, co-CEO, Dimensional Fund Advisors. "Decades of academic research into the factors that drive higher expected returns have found that in equity markets, relative performance among stocks largely depends on company size, relative price, and profitability. We have worked with Manulife to construct indexes that the ETFs seek to track which emphasise and balance those factors while managing investment costs."
"Our core strategy is to identify exceptional managers and offer value-added products to investors," says Bernard Letendre, president, Manulife Investments. "We took our time entering the ETF market to ensure we had a great value proposition for our clients and we believe we achieved this with this initial line-up of ETFs."