Product roundup: Evolve plans to unveil leveraged crypto ETFs in Canada

The proposed funds aim to provide investors with 1.25 times leveraged exposure to amplify the price movements of bitcoin and ether. In a Feb. 4 release, the firm said it would rely on cash borrowing, rather than derivatives, for leverage.

Also, LBIT would invest in the Evolve Bitcoin ETF (TSX: EBIT), while LETH would invest in the Evolve Ether ETF (TSX: ETHR), the release noted.

There are several asset managers in the U.S. who offer leveraged crypto ETFs, but they typically rely on financial derivatives to offer leveraged exposure to cryptocurrencies.

While these leveraged funds seek to deliver amplified returns on bitcoin and ether investments, they could deliver amplified losses during a bear market.

Evolve’s announcement comes after Canada-listed crypto ETFs reported net redemptions in 2024. Investment fund analysts have chalked this up to investors switching to U.S.-listed crypto ETFs, which were only introduced last year and generally have lower management fees.

BMO launches 11 new ETFs under one umbrella

BMO Asset Management Inc. has launched 11 funds as part of its new BMO SPDR Select Sector Index ETFs lineup.

“The new funds simplify sector investing and offer investors more ways to adjust their strategic asset allocation to take advantage of tactical opportunities based on their investment objectives,” the asset manager said in a Feb. 6 release.

“For the first time in Canada, investors can access all 11 Global Industry Classification Standard System sectors of the S&P 500 in both unhedged and hedged units on a Canadian exchange.”

The new ETFs include:

• BMO SPDR Communication Services Select Sector Index ETF (TSX: ZXLC)
• BMO SPDR Consumer Discretionary Select Sector Index ETF (TSX: ZXLY)
• BMO SPDR Consumer Staples Select Sector Index ETF (TSX: ZXLP)
• BMO SPDR Energy Select Sector Index ETF (TSX: ZXLE)
• BMO SPDR Financials Select Sector Index ETF (TSX: ZXLF)
• BMO SPDR Health Care Select Sector Index ETF (TSX: ZCLV.F)
• BMO SPDR Industrials Select Sector Index ETF (TSX: ZXLI)
• BMO SPDR Materials Select Sector Index ETF (TSX: ZXLB)
• BMO SPDR Real Estate Select Sector Index ETF (TSX: ZXLR)
• BMO SPDR Technology Select Sector Index ETF (TSX: ZXLK)
• BMO SPDR Utilities Select Sector Index ETF (TSX: ZXLU)

The funds are available in Canadian dollars.

Harvest looks to grow its crop of ETFs

Harvest Portfolios Group Inc. has filed a preliminary prospectus with the Canadian securities regulators for seven new ETFs to be listed on the Toronto Stock Exchange.

They include the:

• Harvest Alphabet Enhanced High Income Shares ETF (GOGY)
• Harvest AMD Enhanced High Income Shares ETF (AMDY)
• Harvest Broadcom Enhanced High Income Shares ETF (AVGY)
• Harvest Coinbase Enhanced High Income Shares ETF (CNYE)
• Harvest Costco Enhanced High Income Shares ETF (COSY)
• Harvest MicroStrategy Enhanced High Income Shares ETF (MSTE)
• Harvest Netflix Enhanced High Income Shares ETF (NFLY)

With single-stock exposure, the funds seek to capitalize on the growth potential of these companies, “by engaging modest leverage and an active covered call strategy designed to generate enhanced high monthly income,” a Feb. 4 release said.

CIBC ups it CDR game

CIBC has brought 10 new Canadian Depository Receipts (CDRs) to market, bringing its total number of CDR offerings to 80.

The new CDRs, announced Feb. 4, include:

• Airbnb CDR (Cboe: ABNB)
• Applied Materials CDR (Cboe: AMAT)
• Arista Networks CDR (Cboe: ANET)
• Blackstone CDR (Cboe: BX)
• Chipotle CDR (Cboe: CMGS)
• Merck CDR (Cboe: MRK)
• Occidental Premium CDR (Cboe: OXY)
• Oracle CDR (Cboe: ORAC)
• Palantir CDR (Cboe: PLTR)
• Wells Fargo CDR (Cboe: WFCS)

The products allow Canadians to invest in these companies in Canadian dollars.

Independent Advisor Solutions, Apollo partnership births new fund

Independent Advisor Solutions Inc., a subsidiary of Wellington-Altus Financial Inc., has announced the upcoming launch of a fund with exposure to private and public debt.

The MiBLOX fund, which will hit the market in the first quarter of 2025, will provide “exclusive Canadian retail access” to the Apollo Diversified Credit Fund, a diversified, global credit strategy that takes a multi-asset approach to private and public debt, a Feb. 5 release said.

The move comes as part of Independent Advisor Solutions’ exclusive retail partnership with Apollo Global Management, an alternative assets and retirement solutions provider.

National Bank launches new funds

National Bank Investments Inc. has brought three new mutual funds online — the NBI Target 2030 Investment Grade Bond Fund, the NBI Target 2031 Investment Grade Bond Fund and the NBI Active U.S. Equity Fund.

The first two funds invest directly or indirectly through investments in securities of other mutual funds, in a portfolio comprised primarily of investment-grade bonds of North American companies with an effective maturity in 2030 and 2031, respectively.

The bond funds aim to provide current income and preserve capital over a set period. They will terminate on or around Nov. 30 in 2030 and 2031, respectively, or at an earlier date with a minimum of 60 days notice to unitholders, a Feb. 3 release said.

Meanwhile, the NBI Active U.S. Equity Fund aims to provide long-term capital growth by investing, directly or indirectly, in securities of other mutual funds, in a portfolio comprised primarily of common shares of U.S. companies.

The funds are available in multiple series.

A new U.S. small-mid cap fund

Lysander Funds Ltd. has partnered with Pembroke Management Ltd. to launch a new fund.

The Lysander-Pembroke U.S. Small-Mid Cap Fund invests primarily in a concentrated number of small- to mid-sized U.S. companies “judged to have above-average growth potential or to be undervalued,” a Feb. 3 release said.

It’s available to Canadian investors through their advisors in Series A with a trailing commission (code LYS945A) and Series F for fee-based accounts (code LYS945F).

Pembroke’s Andrew Garschagen and Matthew Beckerleg will manage the fund.

BMO, Invesco announce fee changes

On Feb. 3, BMO Investments Inc. (BMOII) announced management and administration fee reductions for two of its mutual funds.

The BMO Strategic Equity Yield Fund’s annual management fee will decline to 1.45% from 1.55% for its series A securities, to 0.45% from 0.55% for its series F securities, and to 1.45% from 1.55% for its advisor series.

The BMO Strategic Fixed Income Yield Fund’s annual management fee will be reduced to 0.95% from 1.05% for its series A securities, to 0.45% from 0.55% for its series F securities, and to 0.95% from 1.05% for its advisor series.

Meanwhile, the administration expenses paid by BMO Strategic Equity Yield Fund in respect of series A, series F and advisor series securities will be paid by BMOII, a release said. The BMO Strategic Equity Yield Fund will continue to pay its fund expenses directly.

As well, the fixed administration fee of 0.1% paid to BMOII by BMO Strategic Fixed Income Yield Fund in respect of series A, series F and advisor series securities will be eliminated, the release added. BMOII will continue to be responsible for payment of the administration expenses for BMO Strategic Fixed Income Yield Fund, other than the fund expenses, which continue to be paid by the fund directly.

Invesco Canada Ltd. has extended a fee waiver for a pair of funds.

In a Jan. 31 release, the fund manager said the Invesco S&P 500 Equal Weight Income Advantage ETF (TSX: QQCI) and Invesco NASDAQ 100 Income Advantage ETF (TSX: EQLI) will have their 0.34% management fees waived until at least June 30. These funds’ fees were originally slated to be waived until Feb. 28.

This move comes at a time when many fund managers are compressing their fees to remain competitive in Canada’s crowded ETF industry.

Invesco also announced that the Invesco 1-3 Year Laddered Floating Rate Note Index ETF will change its name to Invesco Canadian Government Floating Rate Index ETF (TSX: PFL).

The fund’s ticker and international securities identification number will remain the same.

CI GAM takes inspiration from structured notes

CI Global Asset Management (CI GAM) has announced the launch of a mutual fund that aims to deliver the enhanced yields typically offered by structured notes.

The CI Structured Premium Yield Fund seeks to replicate the performance of an actively managed portfolio of structured notes by investing in derivatives and/or structured notes that provide exposure to North American and/or global equity indexes and securities, CI GAM said in a Jan. 28 release.

Structured notes are debt instruments that track the performance of an underlying asset, such as an index, a stock, a basket of stocks, commodities or foreign currencies over a maturity period.

The CI Structured Premium Yield Fund is actively managed, pays a monthly distribution and is offered in four different series.

CI GAM’s Geofrey Marshall, Kevin McSweeney and Lee Goldman are the fund’s lead portfolio managers.