Toronto-based WisdomTree Asset Management Canada Inc. has launched two smart beta fixed-income ETFs designed to increase yield for investors.
Specifically, WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF and WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF aim to profit from the diversification of a multi-sector portfolio while “maintaining a balance between risk and return, shifting exposure across sectors, levels of interest rate risk and credit risk,” the firm says in a statement. Both ETFs have a management fee of 0.18%.
The initial public offering of the non-hedged fund units is now complete, WisdomTree’s news release adds, and the ETFs began trading on the Toronto Stock Exchange on Monday.
“Despite the prospect of rising interest rates, investors don’t have to look outside Canada to benefit from the steady income and lowered volatility expected from the bond market,” says Kurt MacAlpine, executive vice president and head of global distribution with WisdomTree, in a statement.
“These new offerings are designed to minimize portfolio exposure to low-yielding securities like treasuries and to enhance yield,” he adds. “Both ETFs are great options for investors who are seeking to boost their incremental income potential while still mitigating risk.”
WisdomTree now has eight ETFs available for Canadian investors. More information about the new ETFs can be found on the firm’s news release.
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