A summary of the Canadian ETF launches that occurred in May 2024.
Guardian Capital launched the Guardian Investment Grade Corporate Bond Fund (Ticker: GIGC), which seeks to provide investors with a higher income level by investing primarily in mid-term investment-grade corporate bonds.
Accelerate Financial Technologies Inc. launched the Accelerate Diversified Credit Income Fund (Ticker: INCM/ INCM.U), which delivers an alternative source of yield to traditional fixed income by focusing on the private credit market. The Fund aims to generate an attractive income stream through exposure to a diversified portfolio of primarily secured, floating-rate loans through allocations to leading liquid private credit vehicles.
Fidelity Investments launched four ETFs:
Fidelity Global Equity+ Fund (Ticker: FGEP), a one-ticket global equity solution that combines complementary investment styles together to help diversify risk and offer the potential for above-market returns over the long term.
Fidelity Global Equity+ Balanced Fund (Ticker: FGEB), a one-ticket global balanced strategy that combines distinct styles together to help diversify risk and offer the potential for above-market returns with lower volatility.
Fidelity Tactical High Income Fund (Ticker: FTHI), a diversified income solution that can offer the potential for enhanced yield and employs active asset allocation to take advantage of market opportunities. The strategy leverages Fidelity’s global resources and expertise in high-income investing.
Fidelity Emerging Markets Fund (Ticker: FCEM), a strategy that aims to invest in opportunities in developing nations with fast-growing economies. The strategy leverages Fidelity’s proprietary global research network.
CI Global Asset Management launched two ETFs:
The CI Global Artificial Intelligence ETF (Ticker: CIAI), which aims to to maximise long-term capital appreciation by investing primarily in global equity securities of companies that are actively involved in the research, development and application of artificial intelligence technologies.
The CI U.S. 500 Index ETF (Ticker: CUSA), which provides diversified, hedged exposure to the US market by tracking the performance of the Solactive GBS United States 500 Hedged to CAD Index (“CA NTR”), an index designed to reflect the performance of the largest 500 companies from the U.S. stock market.
Global X launched 17 new ETFs following their rebranding from Horizon ETFs. These new ETFs are grouped under four key suites: Equity Essentials, Thematic/Sector, Covered Calls & Options-Based, and Enhanced Index & Enhanced Covered Call. The ETFs in question are:
Equity Essentials are ETFs focused on providing essential Canadian, U.S. and global equity index exposure in partnership with the world’s leading index providers.
Global X S&P 500 Index ETF (Ticker: USSX.U) seeks to replicate, to the extent possible and net of expenses, the performance of an index, currently the S&P 500® Index, that is designed to measure the performance of the large-cap market segment of the U.S. equity market;.
Global X S&P/TSX 60 Index ETF (Ticker: CNDX) seeks to replicate, to the extent possible and net of expenses, the performance of an index, currently the S&P/TSX 60™ Index, that is designed to measure the performance of the large-cap market segment of the Canadian equity market.
Global X Nasdaq-100 Index ETF (Ticker: QQQX.U) seeks to replicate, to the extent reasonably possible and net of expenses, the performance of an index, currently the NASDAQ-100® Index, that includes 100 of the largest domestic and international nonfinancial companies listed on the NASDAQ stock market.
Global X MSCI EAFE Index ETF (Ticker: EAFX.U) seeks to replicate, to the extent reasonably possible and net of expenses, the performance of an index, currently the MSCI EAFE Index, that is designed to measure the performance of large and mid-cap securities across developed markets, including countries in Europe, Australasia, and the Far East, excluding the U.S. and Canada.
Global X MSCI Emerging Markets Index ETF (Ticker: EMMX.U) seeks to replicate, to the extent reasonably possible and net of expenses, the performance of an index, currently the MSCI Emerging Markets Index, that is designed to measure the performance of the large and mid-cap securities across emerging markets countries.
Thematic/Sector are ETFs focused on providing exposure to nascent, innovative, difficult-to-access themes and sectors.
Global X Artificial Intelligence & Technology Index ETF (Ticker: AIGO) seeks to replicate, to the extent possible and net of expenses, the performance of an index, currently the Indxx Artificial Intelligence & Big Data Index, that is designed to provide exposure to developed market, publicly listed companies that are positioned to benefit from the development and utilisation of Artificial Intelligence (AI) in their products and services, as well as companies that produce hardware used in AI applied for the analysis of Big Data.
Global X Innovative Bluechip Top 10 Index ETF (Ticker: TTTX) seeks to replicate, to the extent possible and net of expenses, the performance of an equal-weight index, currently the Mirae Asset Global Bluechip Innovation Tech Top 10 Index, designed to provide exposure to ten of the largest global publicly listed companies anticipated to lead innovation across Artificial Intelligence & Big Data, Semiconductors, Health Care and Biotechnology, and Next Generation Mobility, Battery and Renewable Energy.
Covered Calls & Options-Based ETFs offer equity and fixed-income exposures and seek to generate additional income through actively managed covered call and options programmes.
Global X MSCI EAFE Covered Call ETF (Ticker: EACC) seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across developed markets including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada (currently, the MSCI EAFE Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, EACC will employ a dynamic covered call option writing program.
Global X MSCI Emerging Markets Covered Call ETF (Ticker: EMCC) seeks to provide, to the extent possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across emerging markets (currently, the MSCI Emerging Markets Index); and (b) monthly distributions of dividend and call option income. To mitigate downside risk and generate income, EMCC will employ a dynamic covered call option writing programme.
Global X Short-Term Government Bond Premium Yield ETF (Ticker: PAYS) seeks to provide: (a) exposure to the performance of government debt securities, primarily issued by the Government of Canada, generally targeting a duration less than 3 years; and (b) high monthly distributions of interest income and option premiums. To generate premiums and reduce volatility, PAYS will employ a dynamic option programme. PAYS seeks to hedge any foreign currency exposure back to the Canadian dollar.
Global X All-Equity Asset Allocation Covered Call ETF (Ticker: EQCC) seeks to provide a combination of a high level of income and long-term capital growth, primarily by investing in exchange traded funds that provide exposure to a globally diversified portfolio of equity securities. To generate premiums, EQCC will be exposed to a dynamic covered call options writing programme.
Enhanced Index & Enhanced Covered Call ETFs will offer 1.25x times leverage on underlying ETFs to potentially amplify returns and covered call writing to enhance income.
Global X Enhanced S&P 500 Index ETF (Ticker: USSL) seeks to replicate, to the extent reasonably possible and net of expenses, 1.25 times (125 per cent) the performance of an index, currently the S&P 500 Index, of equity securities representing the large-cap market segment of the U.S. equity market.
USSL will use leverage to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation
Global X Enhanced MSCI EAFE Index ETF (Ticker: EAFL) seeks to replicate, to the extent reasonably possible and net of expenses, 1.25 times (125 per cent) the performance of an index, currently the MSCI EAFE Index, of large and mid-cap securities across developed markets including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada.
EAFL will use leverage to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation.
Global X Enhanced MSCI Emerging Markets Index ETF (Ticker: EMML) seeks to replicate, to the extent reasonably possible and net of expenses, 1.25 times (125 per cent) the performance of an index, currently the MSCI Emerging Markets Index, of large and mid-cap securities across emerging markets.
EMML will use leverage to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation.
Global X Enhanced Nasdaq-100 Index ETF (Ticker: QQQL) seeks to replicate, to the extent reasonably possible and net of expenses, 1.25 times (125 per cent) the performance of an index, currently the NASDAQ 100 Index, of equity securities representing the largest domestic and international nonfinancial companies listed on The NASDAQ Stock Market.
QQQL will use leverage to achieve its investment objective. Leverage will be created through the use of cash borrowings or as otherwise permitted under applicable securities legislation.
Global X Enhanced MSCI EAFE Covered Call ETF (Ticker: EACL) seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across developed markets including countries in Europe, Australasia and the Far East, excluding the U.S. and Canada (currently, the MSCI EAFE Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, EACL will be exposed to a dynamic covered call option writing programme.
EACL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies”) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125 per cent.
Global X Enhanced MSCI Emerging Markets Covered Call ETF (Ticker: EMCL) seeks to provide, to the extent reasonably possible and net of expenses: (a) exposure to the performance of an index of large and mid-cap securities across emerging markets (currently, the MSCI Emerging Markets Index); and (b) high monthly distributions of dividend income and call option premiums. To generate premiums, EMCL will be exposed to a dynamic covered call option writing programme.
EMCL will also employ leverage (not to exceed the limits on use of leverage described under “Investment Strategies”) through cash borrowing and will generally endeavour to maintain a leverage ratio of approximately 125 per cent.
This article is sponsored by STOXX.
To view this week’s global ETF launches, click here.
To view this week’s US ETF launches, click here.
