Toronto-based Sphere Investment Management Inc. has launched a new smart beta exchange-traded fund (ETF) designed to take advantage of the growing economic strength found in emerging markets.
Sphere FTSE Emerging Markets Sustainable Yield Index ETF invests directly or indirectly in up to 150 equity securities of public issuers, which exhibit relatively high and sustainable yields, within the emerging-markets region as classified by FTSE International Ltd.
The ETF seeks to replicate as reasonably possible before fees and expenses the performance of FTSE’s emerging sustainable yield 150 10% capped 100% hedge CAD index or any successor to that index.
“As the only currency hedged, smart beta emerging markets ETF in Canada, this product will offer investors protection against international currency exposure, while delivering excellent value backed by FTSE’s leading index methodology,” says Keith McLean, president and chief investment officer of Sphere Investments, in a statement.
“After underperforming for almost five years, emerging markets have begun to perform much better over the past 12 months,” he adds. “Given current market conditions and the relative valuation of emerging markets, we believe this is just the start of a period of strong performance.”
Sphere Investments will act as trustee, manager and portfolio advisor of the ETF, which began trading on the Toronto Stock Exchange on Wednesday. This is the fifth smart beta ETF that Sphere Investments has released into the Canadian market following the company’s launch in April.
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