A summary of the Canadian ETF launches that occurred in April 2023.
Mackenzie Investments launched the Mackenzie Corporate Knights Global 100 Index ETF. The ETF seeks to replicate the performance of the Corporate Knights Global 100 Index (“CKG 100” or “the Index”), which consists of a diverse selection of global companies with strong management, enduring financial strength and exceptional performance in 25 measures of sustainability developed and maintained by Corporate Knights. To achieve this, the ETF intends to hold the constituent securities of the Index in equal weighting, rebalanced annually.
Securities held by the ETF and included in the CKG 100 are publicly traded companies with over USD1 billion in annual revenue that operate in a sustainable fashion, scoring highly in sustainability categories that include energy efficiency, waste, emissions, water use, pay equity, diversity, sustainable suppliers and more.
Horizons ETFs Management (Canada) Inc. launched two ETFs. The Horizons 0-3 Month U.S. T-Bill ETF and Horizons 0-3 Month T-Bill ETF are tailored for investors seeking exposure to US Treasuries and short-term Canadian Treasuries, respectively. Both solutions are positioned as cash-alternative solutions that will primarily invest in government securities maturing in three months or less and capable of providing an attractive monthly income.
Harvest Portfolios Group Inc. launched two ETFs. The Harvest Travel and Leisure Income ETF utilises a covered call strategy that allows the manager to write covered call options on up to 33 per cent of the portfolio securities. The solution will track the Solactive Travel & Leisure Index. Additionally, the Harvest Diversified Equity Income ETF is a ‘fund-of-ETFs’ solution that will invest in six equally weighted Harvest equity ETFs. The ETF is designed to provide a consistent monthly income stream with an opportunity for growth.
Hamilton ETFs launched the Hamilton Canadian Bank Equal-Weight Index ETF, which tracks the Solactive Equal Weight Canada Banks Index. Marketed as the lowest cost Canadian bank ETF, the primary objective of this solution is to provide comprehensive exposure to Canada’s big-six banks and tax efficient monthly income.
Mulvihill Capital Management Inc launched the Mulvihill U.S. Health Care Enhanced Yield ETF, which provides exposure to an actively managed portfolio of US Health Care stocks, selected from the S&P 500 Health Care Index. The ETF utilises a covered-call strategy and modest leverage (up to 25 per cent) to provide unitholders with enhanced monthly distributions and capital appreciation potential; U.S dollar exposure is hedged back to Canadian dollars.