The Horizons AlphaPro Global Dividend ETF is set to begin trading Wednesday on the Toronto Stock Exchange under the symbol HAZ, AlphaPro Management Inc., the manager of the Horizons AlphaPro Exchange Traded Funds says.

The sub-advisor to the Global Dividend ETF is Guardian Capital LP, which has been managing private client and institutional money for more than 40 years and currently oversees more than $13.4 billion in assets under management.

The investment objective of the Global Dividend ETF is to seek long-term returns consisting of regular dividend income and modest long-term capital growth. The new ETF invests primarily in equity and equity-related securities of companies with operations located anywhere in the world.

“Volatile market conditions over the past two years highlight the tremendous value of dividend-paying stocks. Dividends provide a strong cushion in times of market uncertainty,” says Ken McCord, President of AlphaPro.

McCord points out that Canadian investors limit their dividend-stock buying opportunities if they only buy domestic dividend-paying stocks.

“Canadian companies represent only a small share of the world’s companies. Having global exposure gives an investor the opportunity to buy the world’s best dividend-paying stocks,” McCord says.

Guardian Capital will select high-quality, dividend-paying companies located globally that, in its view, demonstrate a consistent pattern of growing dividends. The portfolio investments will be diversified among different companies and industry sectors.

The investment team at Guardian Capital will use a robust systematic research process to select companies for consideration. From those selected, the investment managers will conduct a bottom-up analysis to determine which companies should be added to the portfolio.

“Using a combination of fundamental, quantitative and technical research allows Guardian Capital to find those companies in the world, wherever they may be located, that offer the best prospects for consistently increasing dividend payments,” McCord says.

Since it is designed specifically to meet the needs of Canadian investors, the new ETF will initially seek to hedge 50% of its non-Canadian dollar currency exposure, and may continue to hedge such exposure at the discretion of Guardian Capital.

Guardian Capital will invest primarily in equity securities listed on North American exchanges, including American Deposit Receipts, and may also from time to time invest in preferred and fixed-income securities such as government bonds, corporate bonds or treasury bills.

IE