Canada’s NEO Exchange has announced the launch of the Wealthsimple North American Green Bond Index ETF (CAD-Hedged).
Mackenzie Investments will serve as trustee, manager and portfolio manager for the new ETF, which trades under the symbol WSGB.
The firm writes that with today’s launch, Wealthsimple offers greater choice to investors in the ever-expanding socially responsible fixed income market. WSGB aims to enable investors to gain core fixed income exposure while having a positive impact by funding projects addressing environmental and social issues.
The Wealthsimple North American Green Bond Index ETF seeks to replicate the performance of the Solactive Green Bond USD CAD DM CAD hedged Index, which invests primarily in investment-grade green, social, and sustainable bonds, with its foreign currency exposure hedged back to the Canadian dollar.
“As a company committed to making accessible and affordable financial products for everyone, we’re excited to introduce the Wealthsimple Green Bond ETF on NEO’s innovative exchange,” says Ben Reeves, Chief Investment Officer at Wealthsimple. “Our new offering gives Canadians the ability to invest directly in the environmental and social projects required for a net zero carbon economy while also supporting their own personal financial goals.”
Data on bonds held by WSGB will be provided by Solactive and the Climate Bonds Initiative, which will ensure that issuers comply with Green and Social Bond Principles at launch, and subsequently on an annual basis, to prevent greenwashing.
“ESG and socially responsible investment solutions have skyrocketed in demand over the past few years, and we are honoured that Wealthsimple has chosen to list WSGB on the NEO Exchange,” says Jos Schmitt, President and CEO of NEO. “It is a true pleasure to serve as the listing partner for an organization that shares our commitment to building a better tomorrow. We remain focused, as ever, on continuing to drive the change that provides investors with greater choice and supporting the Innovation Economy, of which the climate transition journey is a very critical part.”
Investors can trade units of the Wealthsimple North American Green Bond Index ETF (WSGB) through their usual investment channels, including discount brokerage platforms and full-service dealers.
Wealthsimple previously listed Canada’s first Shariah-compliant exchange traded fund, the Wealthsimple Shariah World Equity Index ETF (WSHR), on the NEO Exchange in May of 2021.