Toronto-based BlackRock Asset Management Canada Ltd. has announced the expansion of its iShares Core group of exchange-traded funds (ETF) with the launch of four new funds.
These funds provide additional low-cost options to investors and include access to the U.S market as well as other developed markets and emerging markets.
“The latest expansion of the iShares Core for Canadian investors comes in response to the continuing demand for low-cost, well-diversified funds to comprise core allocations in their portfolios,” says Warren Collier, managing director, head of iShares, BlackRock Canada.
Both iShares Core S&P U.S. Total Market Index ETF (TSX:XUU) and iShares Core S&P U.S. Total Market Index (TSX:XUH) offer broad exposure to U.S. large, mid, small and micro capitalized companies, with XUH being hedged to the Canadian dollar.
iShares Core MSCI All Country World ex Canada ETF (TSX:XAW) provides access to large, mid and small cap representation across 22 developed markets countries, excluding Canada and 23 emerging markets countries.
iShares Core MSCI EAFE IMI Index ETF (TSX:XFH) provide access to large, mid, and small cap representation across developed markets countries, excluding the U.S. and Canada, and is hedged to the Canadian dollar.
BlackRock Canada has also launched the iShares U.S. High Dividend Equity Index ETF (TSX:XHU), which provides exposure to a portfolio of 75 high-quality U.S. dividend-paying stocks. It was designed to help Canadian investors grow their income sources in the current low-growth and low-yield environment, according to BlackRock Canada.
“We are responding with a solution that can help investors realize a continuing income equity stream, with the added optionality of benefiting from the current strength of the U.S. dollar,” said Pat Chiefalo, head of iShares Product, BlackRock Canada.
This fund is hedged to the U.S. dollar and looks to provide long-term capital growth by replicating, to the extent possible, the performance of the Morningstar Dividend Yield Focus Index net of expenses. There is also a version of this ETF that is hedged to the Canadian dollar (TSX:XHD).
All funds, with the exception of XUH, began trading on the Toronto Stock Exchange on Tuesday. XUH is expected to begin trading Feb. 19.