Toronto-based Horizons ETFs Management (Canada) Inc.’s newest exchange-traded fund [ETF] will provide investors with an opportunity to profit from a strong Canadian dollar (C$) relative to the U.S. dollar (US$).
Horizons Canadian Dollar Currency ETF began trading on the Toronto Stock Exchange on Tuesday.
“[The ETF] seeks to reflect, in C$ and net of expenses, the performance of the C$ relative to the US$, by primarily investing in C$-denominated cash and cash equivalents, and using forward currency agreements and/or futures contracts,” states the firm’s announcement released on Tuesday.
The new ETF was launched in response to investor demand Horizons ETFs has been seeing for a product that would enable investors to capture the appreciation of the C$ relative to the US$, according to Steve Hawkins, co-CEO of Horizons ETFs, in a statement.
“Alternately, [Horizons Canadian Dollar Currency ETF] may also be used as a tool to hedge US$-denominated assets in international investment portfolios, especially as the C$ appreciates relative to the US$,” he says.