Toronto-based First Asset Investment Management Inc. is adding to its line-up of exchange-traded funds replicating Morningstar indices with the Tuesday launch of First Asset Morningstar US Momentum Index ETF (TSX:YXM) and First Asset Morningstar US Value Index ETF (TSX:XXM).
The two new offerings, which began trading today on the Toronto Stock Exchange (TSX), have been designed to replicate, to the extent possible, the performance of the Morningstar US Momentum Target 50 Index and Morningstar US Value Target 50 Index, as applicable, net of expenses.
YXM has been designed to provide diversified exposure to the top 50 U.S.-based equities that demonstrate positive momentum in earnings and price.
XXM provides diversified exposure to the top 50 U.S.-based equities that are considered to be “good value” based on characteristics like low price-to-earnings and low price-to-cash flow ratios.
The ETFs will be denominated in Canadian dollars but will be offered in hedged and un-hedged versions to provide investors with the flexibility to choose whether they want exposure to the U.S. currency. They will also offer Advisor Class units in both hedged and un-hedged versions.
“As a result of the success of our First Asset Morningstar Canada Value and Canada Momentum Index ETFs launched last year, investors have been asking us to deliver U.S. equivalents that leverage the same proven methodologies and strategies,” said Barry Gordon, president and CEO of First Asset, in a release.
In addition to the launch of YXM and XXM, First Asset announced that un-hedged Common (TSX:UXM.B) and Advisor Class units (TSX:UXM.D) of First Asset Morningstar US Divided Target 50 Index ETF also began trading today on the TSX.
UXM seeks to replicate the performance of the Morningstar US Dividend Target 50 Index. This Index applies Morningstar methodology to screen for the top 50 dividend-paying, U.S.-based equities that have above-average returns on equity and high cash flows relative to debt.