Canada ETF Industry News
- Week of July 27-31
ETF Launches – Equities
iA Clarington Expands Active ETF Lineup With International Multifactor Fund
iA Clarington has launched the iA Clarington International Multifactor Equity Fund, available as both a mutual fund and an Active ETF Series under the ticker IIME. Managed by iA Global Asset Management, the strategy uses a quantitative process to invest in international equities, dynamically allocating across more than 30 quality, momentum and value factors to adapt to changing market conditions. The ETF began trading on the Toronto Stock Exchange with a 0.50% management fee, further expanding the firm’s growing lineup of actively managed ETF offerings.
ETF Launches – Fixed Income
BMO Launches ETF Designed to Benefit From Credit Market Stress
BMO Asset Management has launched the BMO Credit Stress Opportunities ETF, trading on the Toronto Stock Exchange as ZCDX for Canadian-dollar units and ZCDX.U for U.S.-dollar units. The actively managed ETF seeks to profit from deteriorating credit conditions among U.S. high-yield corporate issuers by taking short positions in credit default index derivatives linked primarily to the Markit CDX North America High Yield Index.
The strategy is designed to benefit from widening credit spreads and corporate defaults while minimizing interest-rate risk, offering investors a targeted hedge against stress in the high-yield credit market.
ETF Updates & Changes
BMO Launches Mutual Funds Built Around ETF Strategies
BMO Investments has expanded its mutual fund lineup with 12 new funds that provide access to existing in-house strategies. The launches span asset-allocation portfolios, Canadian and U.S. equities, investment-grade bonds, commodities, Canadian bank income and AAA-rated CLOs, offering investors mutual fund versions of a broad range of BMO ETF exposures.
The new funds are available across multiple series, giving advisors and investors additional ways to access BMO’s investment strategies through traditional mutual fund structures.
Vanguard Renames U.S. Total Market ETFs After Index Switch
Vanguard Investments Canada has renamed the Vanguard U.S. Total Market Index ETF (VUN) to the Vanguard Morningstar U.S. Total Market Index ETF and the Vanguard U.S. Total Market Index ETF (CAD-hedged) (VUS) to the Vanguard Morningstar U.S. Total Market Index ETF (CAD-hedged).
The changes reflect a switch in the underlying benchmark from the CRSP U.S. Total Market Index to the Morningstar U.S. Total Market Index. Aside from the fund and index name changes, the ETFs’ investment objectives and overall exposure remain unchanged.
ETF Filings
Fidelity Files for Global Quant Equity ETF in Canada
Fidelity Investments has filed to launch the Fidelity Global Quant Equity ETF (FGQE), a new actively managed fund that will invest in equities from countries around the world. The ETF will use a quantitative multi-factor investment model to construct its portfolio, seeking to identify attractive opportunities across global markets.
The fund’s holdings will be rebalanced periodically based on the model’s signals. The proposed fund carries a management fee of 0.35% and broadens Fidelity’s lineup of quantitative investment strategies for Canadian investors.
Manulife Files Three ETFs Expanding Model Portfolio Lineup
Manulife Investments has filed to launch three new ETFs in Canada: the Manulife All-Equity ETF Portfolio (MAEQ), the Manulife All-Income ETF Portfolio (MINC) and a U.S.-dollar version of the Manulife Smart International Dividend ETF, which appears to use the ticker IDIV.U.
The two portfolio ETFs will invest primarily in underlying ETFs to provide diversified global equity and fixed-income exposure, while IDIV.U will focus on international dividend-paying stocks to generate U.S.-dollar income and long-term capital appreciation. Each fund is proposed with a 0.35% management fee.
