First Asset Investment Management has launched an unhedged class of units for the First Asset Tech Giants Covered Call ETF.
This new class of units will commence trading today on the Toronto Stock Exchange (TSX) under the ticker symbol TXF.B. The hedged class of units of the ETF has been available since October, 2011 and trade on the TSX under the ticker symbol TXF.
Unlike the Hedged Units, which hedge at least 90 per cent of the value of the foreign currency exposure, if any, attributable to the Hedged Units back to the Canadian dollar, the foreign currency exposure attributable to the Unhedged Units will not be hedged back to the Canadian dollar.
The ETF provides exposure to some of the largest, most innovative technology companies by minimising volatility and generating attractive income through an actively managed covered call writing strategy. The largest 25 issuers, measured by market capitalisation, listed on a North American stock exchange are chosen for inclusion in the ETF on an equally weighted basis and are rebalanced quarterly. Distributions are paid quarterly and no more than 25 per cent of the portfolio’s securities will have call options written upon them at any given time.