Toronto-based BlackRock Asset Management Canada Ltd. has launched two new exchange-traded funds (ETFs) that provide investors with low-cost exposure to the mid-capitalization sector of the U.S. equity market, the company announced on Monday.

Units of iShares S&P U.S. Mid-Cap Index ETF (TSX: XMC), an unhedged version of the exposure, and iShares S&P U.S. Mid-Cap Index ETF (CAD-Hedged) (TSX: XMH), a Canadian hedged version, were listed on the Toronto Stock Exchange when it opened today. Each ETF has a management fee of 0.15%.

“In the continued search for growth, the addition of XMC and XMH provides Canadian investors with access to a dynamic segment of the U.S. equity market, and rounds out iShares’ U.S. equity portfolio,” says Pat Chiefalo, managing director and head of product for BlackRock Canada’s iShares business, in a statement. “Given their unique place within the corporate lifecycle, mid-cap companies can deliver attractive risk/return prospects for the long-term investor.”

The launch of these two funds means the iShares fund line-up now covers a range of U.S. equity exposures that include total market and large, mid and small-cap sectors.

XMC and XMH, in particular, aim to provide investors with low-cost access to a specific segment of the U.S. stock market that has historically outperformed small-cap and large-cap stocks over the long-term, according to BlackRock Canada’s announcement. The ETFs will replicate, to the extent possible, the performance of the S&P MidCap 400 Index and the S&P MidCap 400 CAD Hedged Index, net of expenses.

The firm also notes that, under normal market conditions, each fund will primarily invest in securities of one or more ETFs managed by BlackRock Canada or an affiliate and/or directly in U.S. equity securities. XMH will seek to hedge any resulting U.S. dollar or other foreign currency exposure, as applicable, back to Canadian dollars.