Toronto-based Purpose Investments Inc. announced on Wednesday that it is launching a U.S. dollar (US$) exchange-traded fund (ETF) and a money market fund. Both products are targeted to investors looking for monthly income.
Purpose U.S. Cash ETF seeks to maximize monthly income in US$ for unitholders while preserving capital and liquidity, according to the firm’s announcement.
The ETF invests primarily in high-interest deposit accounts and high-quality money market securities, which are denominated in US$ and generally with term to maturity not exceeding one year. Purpose U.S. Cash ETF, which began trading on the Toronto Stock Exchange on Wednesday, has an indicative current yield of 0.35% a year paid in US$.
Purpose Premium Money Market Fund also seeks to maximize monthly income for unitholders while preserving capital and liquidity. It invests primarily in high-interest deposit accounts and high-quality money market securities generally with term to maturity not exceeding one year.
The money market fund has an indicative current yield of 0.9% a year for Series F shares.
Purpose Investments has reduced their management fees for both products. The ETF’s management fee is 0.1% while the money market fund’s fee is 0.2% for Series F shares and 0.45% for Series A shares. These fees will be in effect until the firm announces otherwise.