Investment Executive regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.
- Two Horizons ETFs Management (Canada) Inc. ETFs for clients seeking short-term Canadian or U.S. treasuries started trading on Friday. The funds targeting government securities maturing in three months or less provide safety and “attractive monthly income,” Horizons chief operating officer Jasmit Bhandal said in a release. Investors have gravitated toward GICs and high-interest savings account ETFs over the past year’s volatile markets. “Increasingly, investors are seeking ways to hold cash in their portfolio, while taking advantage of higher interest rates to generate higher levels of income,” Bhandal said. While the new Horizons ETFs aren’t covered by the Canada Deposit Insurance Corporation or the Federal Deposit Insurance Corporation in the U.S., T-Bills are backed by the creditworthiness of the Canadian and U.S. governments, Horizons said.
- The Horizons 0-3 Month U.S. T-Bill ETF (TSX: UBIL.U) has an initial target annualized net yield of 4.25%. The management fee is 0.12% and the risk rating is low.
- The Horizons 0-3 Month T-Bill ETF (TSX: CBIL) has an initial target annualized net yield of 4.23%. The management fee is 0.10% and the risk rating is low.
- Harvest Portfolios Group Inc. launched two new ETFs on April 12.
- The Harvest Travel and Leisure Income ETF (TSX: TRVI), which tracks the Solactive Travel & Leisure Index, is similar in concept to the two-year-old Harvest Travel and Leisure Index ETF (TSX: TRVL), except TRVI can write covered call options on up to 33% of the portfolio securities. The management fee is 0.75% and the risk rating is high. TRVL, whose holdings include airlines, cruise lines, hotels, resorts, casinos and online booking services, launched in early 2021 to give clients the opportunity to take advantage of long-term demographic trends that favour tourism while playing the “short-term consumer discretionary recovery” as Covid-19 restrictions lifted.
- The Harvest Diversified Equity Income ETF (HRIF), which invests in six existing Harvest equity ETFs, is similar in concept to the Harvest Diversified Monthly Income ETF (TSX: HDIF). The latter, launched in 2022, uses about 25% leverage while HRIF — which started trading April 12 on the TSX — doesn’t use leverage. HRIF does not have its own management fee because the underlying ETFs have their own fees, ranging from 0.50% to 0.85%. The risk rating is medium. Initially it will invest in Harvest’s Healthcare Leaders Income ETF, Brand Leaders Plus Income ETF, Equal Weight Global Utilities Income ETF, US Bank Leaders Income ETF, Tech Achievers Growth & Income and Canadian Equity Income Leaders ETF.
- The Hamilton Canadian Bank Equal-Weight Index ETF (TSX: HEB), which tracks the Solactive Equal Weight Canada Banks Index, began trading on April 4. With a management fee of 0.19% and medium risk rating, HEB is “a convenient way to get exposure to Canada’s banks, a core holding for most Canadians, while providing more frequent income than owning the banks directly,” said Pat Sommerville, senior partner and business development head with Hamilton Capital Partners Inc., in a release.
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