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CI Global Asset Management launches Minimum Downside Volatility ETFs


CI Global Asset Management has announced that CI Global Minimum Downside Volatility Index ETF and CI U.S. Minimum Downside Volatility Index ETF have begun trading on the Toronto Stock Exchange under the tickers CGDV, CGDV.B, CUDV and CUDV.B.

The firm writes that the ETFs seek to replicate the performance of Solactive indexes that track the performance of diversified portfolios of companies that exhibit lower downside volatility than the broader developed equity markets.

“One key to successful investing is simply avoiding losses,” says Roy Ratnavel, Executive Vice-President and Head of Distribution for CI GAM. “By focusing on companies with strong performance during market downturns, these mandates can play defence for investors’ portfolios. And because these ETFs seek to minimize downside volatility – as opposed to total volatility – they’re also well positioned to benefit from rising markets. Ultimately, their goal is to deliver a smoother journey to better overall long-term returns.”

“The Solactive Minimum Downside Volatility indexes were constructed to generate lower downside volatility, lower maximum drawdowns, and higher risk-adjusted returns compared to classical volatility-optimized indices,” says Timo Pfeiffer, Chief Markets Officer at Solactive. “We are pleased that CI, which is at the forefront of meeting investor requirements, has adopted this strategy as part of its ongoing enhancement of its product offerings.”

“These new ETFs kick off what will be another dynamic year of product innovation and development at CI GAM,” says Ratnavel. “In 2022, we launched nine ETFs, three dual-class funds with both mutual fund and ETF series, and three mutual funds, spanning a range of mandates that included fixed income, ESG, commodities, cryptocurrency, alternatives, and leading-edge investment themes.

“This year we will continue to modernise and enhance our line-up, building on our commitment to provide a diverse selection of timely and effective investment solutions to help advisors and investors succeed in a challenging market environment.”

CI U.S. Minimum Downside Volatility Index ETF represents a portfolio of U.S. companies and has a management fee of 0.30 per cent. CI Global Minimum Downside Volatility Index ETF represents a portfolio of global companies and has a management fee of 0.35 per cent.

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