A summary of the Canadian ETF launches that occurred in September 2024.
Hamilton ETFs launched the Hamilton U.S. T-Bill YIELD MAXIMIZER ETF (Ticker: HBIL), which seeks to deliver attractive monthly income while providing exposure primarily, directly or indirectly, to shorter-term US Treasury securities. To supplement distribution income earned on its holdings, mitigate risk and reduce volatility, HBIL will employ an actively managed covered call overlay.
Vanguard Investments Canada Inc. launched the Vanguard Canadian Ultra-Short Government Bond Index ETF (Ticker: VVSG), which seeks to track the Bloomberg Canadian Short Treasury 1-12 month Float Adjusted Index. It invests primarily in public, investment-grade government fixed-income securities with maturities of less than 365 days issued in Canada.
Evolve Funds Group Inc. launched the Evolve Canadian Utilities Enhanced Yield Index Fund (Ticker: UTES), which seeks to replicate the performance of the Solactive Canada Utility Index by 1.25 times while mitigating downside risk.
To enhance yield, mitigate risk, and reduce volatility, UTES will employ a covered call option writing programme at the manager’s discretion. The covered call option writing level may vary based on market volatility and other factors.
First Trust Canada launched the First Trust SMID Cap Rising Dividend Achievers ETF (Ticker: SDVY/SDVY.F), which seeks to track the performance of the Nasdaq US Small Mid Cap Rising Dividend Achievers Index by holding securities of First Trust SMID Cap Rising Dividend Achievers ETF, a US-listed index ETF. The Index is designed to measure the performance of securities in the small to mid-capitalisation space determined to have increased their dividend value over the previous three-year and five-year annual periods while being best positioned to continue the dividend increase.
CI Global Asset Management launched the CI Global Quality Dividend Growth Index ETF (Ticker: CGQD.B), which tracks the price and yield performance of the WisdomTree Global Quality Dividend Growth CAD Index. The index is a fundamentally weighted index designed to provide exposure to a broad range of dividend-paying companies with growth and quality characteristics around the developed world.
The WisdomTree Global Quality Dividend Growth Index identifies quality large-cap dividend-paying companies that have the profitability and growth characteristics to be able to grow their dividends over time. The strategy uses a robust methodology that focuses on return on equity and return on assets, as well as earnings growth, and emphasises those companies with the highest potential to continue increasing their dividends.
RBC iShares launched the ETF Series offerings of two mutual fund mandates: The RBC Life Science and Technology Fund—ETF Series (Ticker: RLST) and the RBC U.S. Mid-Cap Growth Equity Fund—ETF Series (Ticker: RUMG).
RLST is designed to provide long-term capital growth through investments in equity securities of US companies in the life sciences and technology sectors, including biotechnology, pharmaceuticals, internet infrastructure, and telecommunications.
RUMG aims to provide long-term capital appreciation by investing primarily in mid-capitalised US listed equities. The fund’s holdings are diversified across industries within the US market, and the fund will review economic, industry, and company‑specific information to assess companies’ growth prospects.
Mackenzie Investments launched four actively managed ETFs:
The Mackenzie Global Equity ETF (Ticker: MGQE) is focused on companies that are undervalued, of high quality, and have good growth prospects. The Portfolio Manager uses a quantitative approach to stock selection, portfolio construction, and transaction cost measurement. The Portfolio Manager employs fundamental ideas in a disciplined, risk-aware manner. The Mackenzie Global Equity ETF invests in large and mid-cap stocks.
The Mackenzie International Equity ETF (Ticker: MIQE) follows a core investment style that is focused on companies that are undervalued, of high quality and have good growth prospects. The Portfolio Manager employs a bottom-up, quantitative stock selection process applied to a broad large- and mid-cap investable universe of 1,500 securities across 21 developed countries excluding the U.S. and Canada.
The Mackenzie Bluewater Next Gen Growth ETF (Ticker: MNXT) aims to identify companies which the Portfolio Manager believes are able to be innovative leaders in their industry. These companies attempt to drive innovation or benefit from the application of certain types of innovation: (i) Product Innovation: the development of innovative products or features; (ii) Service Innovation: the creation and introduction of new services for customers and partners; or (iii) Business Model Innovation: the development of innovative business models and revenue streams.
The investment approach follows a company-focused investment style, seeking companies with strong management, good growth prospects and a solid financial position. Emphasis is placed on paying reasonable prices for the free cash flow growth that companies in the portfolio are expected to achieve.
The Mackenzie Core Resources ETF (Ticker: MORE) will invest primarily in Canadian equity securities but may also invest in equity securities located anywhere in the world. The investment approach follows a company-focused investment style focusing on strong sustainable free cash flows while maintaining discipline around risk exposures. The Mackenzie Core Resources ETF will generally invest in a mix of smaller and larger capitalisation companies in various natural resources industries.
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.
