A summary of the Canadian ETF launches that occurred in July 2023.
Horizons ETFs Management (Canada) Inc launched six new ETFs that aim to accelerate the performance of Canada’s big banks and Canadian large cap stocks through the strategic use of leverage or leverage together with covered calls. Detailed below are the five solutions launched by the firm.
The Horizons Equal Weight Bank Index ETF seeks to replicate the performance of the Solactive Equal Weight Canada Banks Index, an index of equal-weighted equity securities of diversified Canadian banks.
The Horizons Enhanced Equal Weight Bank Index ETF seeks to replicate 1.25 times (125 per cent) the performance of the Solactive Equal Weight Canada Banks Index.
The Horizons Enhanced Equal Weight Canadian Banks Covered Call ETF seeks to provide exposure to the Solactive Equal Weight Canada Banks Index and generate high monthly distributions of dividend and call option income. The ETF will endeavour to maintain a leverage ratio of approximately 125 per cent.
The Horizons Enhanced S&P/TSX 60 Index seeks to replicate 1.25 times (125 per cent) the performance of the S&P/TSX 60 Index, which represents the large-cap market segment of the Canadian equity market. The ETF will use leverage in order to seek to achieve its investment objective through the use of cash borrowings.
The Horizons Enhanced Canadian Large Cap Equity Covered Call ETF seeks to provide exposure to the performance of the large-cap market segment of the Canadian equity market and generate high monthly distributions of dividend and call option income. The ETF will endeavour to maintain a leverage ratio of approximately 125 per cent.
The Horizons Enhanced US Large Cap Equity Covered Call ETF seeks to provide exposure to the performance of the large-cap market segment of the US equity market and generate high monthly distributions of dividend and call option income. The ETF endeavour to maintain a leverage ratio of approximately 125 per cent.
Guardian Capital LP (Guardian Capital) launched two new ETFs, the Guardian Ultra-Short Canadian T-Bill Fund and Guardian Ultra-Short US T-Bill Fund. The former seeks to provide interest income primarily through exposure to short-term treasury bills issued by the Government of Canada or a Canadian Province with remaining maturities of three months or less. The latter seeks to provide interest income primarily through exposure to short-term treasury bills issued by the federal government of the US with remaining maturities of three months or less.
Evolve Funds launched two ETFs, the Evolve NASDAQ Technology Index Fund will seek to replicate the performance of the Nasdaq-100 Technology Sector Adjusted Market-Cap Weighted Index. The Evolve S&P 500 Enhanced Yield Fund USD Unhedged ETF invests primarily in the equity constituents of the S&P 500 Index, while writing covered call options on up to 33 per cent of the portfolio, at the discretion of the manager.
BMO Global Asset Management launched five new ETFs, each with a distinct thematic focus. Detailed below is each solution.
The BMO Global Equity Fund invests primarily in equities of companies that trade on recognised exchanges in countries around the world.
The BMO Global Health Care Fund invests primarily in companies that operate in, or are expected to benefit from, health care related businesses from around the world.
The BMO Global Infrastructure Fund invests primarily in companies that operate in, or are expected to benefit from, infrastructure-related businesses from around the world. The ETF may also invest in fixed income securities of such companies.
The BMO Global Innovators Fund invests primarily in equity and equity-related securities of companies involved in the development of innovative products, processes or services and companies that may benefit from these innovations from around the world.
The BMO Global REIT Fund invests primarily in REITs and equity securities of real estate operating companies and/or companies that provide services to the real estate industry from around the world.
CI Global Asset Management launched two new ETFs, the CI Money Market ETF and CI US Money Market ETF. The former will invest primarily in money market instruments that mature in less than 365 days, while the latter will invest primarily in money market instruments denominated in US dollars that mature in less than 365 days.
