Exchange-traded funds providers continue to pump out new investment offerings with a plethora of products hitting the shelf in September.
More than 20 ETFs have launched over the last few weeks – both in the active management space and passive investing – pushing the total number of ETF offerings in the Canadian market beyond the 600 mark. The assets flowing into the Canadian ETF market have been consistently heading north month over month and now sit at $135-billion in assets under management.
Here is a roundup of the most recent product launches – as well as those set to hit the market this fall:
Wisdom Tree Canada added three dividend-paying equity funds to its ETF offering. WisdomTree Canada Quality Dividend Growth Index ETF (DGRC); WisdomTree Emerging Markets Dividend Index ETF (EMV.B); and WisdomTree U.S. MidCap Dividend Index ETF (UMI and UMI.B). They all follow a dividend-weighted approach, rather than weighting by market capitalization and charge management fees between 0.21 per cent to 0.38 per cent.
Horizons ETFs Management (Canada) Inc. introduced its new developed markets strategy with the launch of Horizons International Developed Markets Equity Index ETF. With the ticker HXDM, investors will gain exposure to developed market stocks outside of North America through tracking the MSCI EAFE Index. Management fees for HXDM are 0.20 per cent.
Horizons has also filed preliminary prospectuses for three additional funds expected to launch later this year: Horizons Robotics and Automation Index ETF (ROBO); Horizons Active Intl Developed Markets Equity ETF (HADM); and Horizons Active A.I. Global Equity ETF (MIND).
RBC Global Asset Management Inc. launched a suite of seven index-tracking ETFs sub-advised by State Street Global Advisors (SSGA), the investment management arm of State Street Corp. The funds include: RBC Canadian Short Term Bond Index ETF (RCSB); RBC Canadian Bond Index ETF (RCUB); RBC Global Government Bond (CAD Hedged) Index ETF (RGGB); RBC Canadian Equity Index ETF (RCAN); RBC U.S Equity Index ETF (RUSA); RBC International Equity Index ETF (RINT); and RBC Emerging Markets Equity Index ETF (REEM). The seven ETFs will follow indexes provided by FTSE Russell and have management fees ranging from 0.05 per cent to 0.35 per cent.
RBC already has plans to launch an additional five funds later this year and filed a final prospectus for four actively managed fixed-income ETFs and one index-tracking fund. These upcoming ETFs will leverage the investment capabilities behind the PH&N and BlueBay fixed-income funds and includes: RBC 6-10 Year Laddered Canadian Corporate Bond Ladder ETF (RMBO); RBC Canadian Bank Yield ETF (RBNK); RBC Short-Term U.S. Corporate Bond ETF (RUSB, RUSB.U); RBC PH&N Short-Term Canadian Bond ETF (RPSB); and RBC BlueBay Global Diversified Income (CAD Hedged) ETF (RBDI).
Newcomer Evolve funds just announced four of its ETFs are now actively trading on the TSX. The funds had already filed preliminary prospectus early in the summer and received approval from regulators. With management fees of 0.40 per cent, Evolve Gender Diversity (HERS); Evolve Cybersecurity (CYBR); and Evolve Automobile Innovation Index ETF (CARS) are all indexed based funds, while Evolve Active Canadian Preferred Share ETF ( DIVS) is actively managed with a fee of 0.65 per cent and is sub-advised by Foyston, Gordon & Payne Inc.
Evolve has more products set to launch this fall including a global health care fund – Evolve Global Healthcare Enhanced Yield ETF (LIFE).
Dynamic Funds and BlackRock Canada expanded the Dynamic iShares Active ETFs lineup with three actively managed fixed-income ETFs that provide exposure to U.S. mid-cap equity and global financial services: Dynamic iShares Active Tactical Bond ETF (DXB); Dynamic iShares Active U.S. Mid-Cap ETF (DXZ); and Dynamic iShares Active Global Financial Services ETF (DXF) all provide exposure to active investment strategies implemented by Dynamic fund managers Christine Horoyski for DXB, Tom Dicker and Steven Hall for DXZ, and Yassen Dimitrov for DXF. Management fees range from 0.50 per cent to 0.75 per cent.
Invesco's Powershares introduced two income-focused ETFs that will offer investors exposure to intermediate-term corporate bonds and the real estate sector. The PowerShares 1-10 Year Laddered Investment Grade Corporate Bond Index ETF (PIB) will aim to track the FTSE TMX Canada Investment Grade 1-10 Year Laddered Corporate Bond Index, while PowerShares S&P/TSX REIT Income Index ETF (REIT) will track the S&P/TSX Capped REIT Income Index. Management fees for PIB and REIT are 0.25 per cent and 0.45 per cent, respectively.
Hamilton Capital Partners expanded its fund family with the addition of the Hamilton Capital US Mid-Cap Financials ETF (USD). The fund provides investors the opportunity to gain long-term returns in U.S. dollars, consisting of capital growth and dividends from an actively managed equity portfolio of, primarily, United States-based mid-cap (market capitalization between US$500 million and US$20 billion) financial services companies. With the ticker HFMU.U, the portfolio may include commercial and investment banks, insurance companies, brokerages, asset managers, exchanges, real estate investment trusts and other investment companies. Management fees are 0.85 per cent.
First Asset has added to its actively managed suite of funds with two new ETFs: First Asset Enhanced Short Duration Bond ETF (FSB) and First Asset Cambridge Global Dividend ETF (FCW and FCW.B ) have management fees of 0.60 per cent and 0.70 per cent, respectively. FSB aims to provide positive absolute returns, monthly distributions along with very low volatility , while FCW aims to provides attractive total investment return, consisting of dividend income and capital gains, by investing primarily in equity and equity-related securities of issuers anywhere in the world. The company also launched a rules-based ETF with an unhedged version of the First Asset Tech Giants Covered Call ETF with the ticker TXF.B and management fees of 0.65 per cent.