The new products offer non-hedged exposure to selected Canadian bond segments
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WisdomTree Canada has expanded its ETF lineup by launching two new smart-beta fixed-income funds on the TSX.
The WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF (CAGG) seeks enhanced income potential by sourcing and reweighting subcomponents of the Bloomberg Barclays Canadian Aggregate Index. It aims to track the price and yield performance of the Bloomberg Barclays Canadian Aggregate Enhanced Yield Index before fees and expenses.
The Bloomberg Barclays Canadian Aggregate Index is a broad-based benchmark measuring the investment-grande, Canadian dollar-denominated, fixed-rate bond market.
On the other hand, the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF ("CAGS") also seeks enhanced yield by taking on subcomponents of the Bloomberg Barclays Canadian Aggregate Index, but is focused on the 1-5 year fixed-income segment. CAGS aims to track the price and yield performance of the Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index before fees and expenses.
The Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index is a constrained, rules-based approach that reweights the Bloomberg Barclays Canadian Aggregate Index across various subcomponents according to their sector, maturity, and credit quality. This is done to improve the yield maturing in one to five years.
“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,” said Kurt MacAlpine, executive vice president and head of global distribution at WisdomTree. “Both CAGG and CAGS are great options for investors who are seeking to boost their incremental income potential while still mitigating risk."
Non-hedged units have been launched for both funds, and both have a management fee of 0.18%
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The WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF (CAGG) seeks enhanced income potential by sourcing and reweighting subcomponents of the Bloomberg Barclays Canadian Aggregate Index. It aims to track the price and yield performance of the Bloomberg Barclays Canadian Aggregate Enhanced Yield Index before fees and expenses.
The Bloomberg Barclays Canadian Aggregate Index is a broad-based benchmark measuring the investment-grande, Canadian dollar-denominated, fixed-rate bond market.
On the other hand, the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF ("CAGS") also seeks enhanced yield by taking on subcomponents of the Bloomberg Barclays Canadian Aggregate Index, but is focused on the 1-5 year fixed-income segment. CAGS aims to track the price and yield performance of the Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index before fees and expenses.
The Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index is a constrained, rules-based approach that reweights the Bloomberg Barclays Canadian Aggregate Index across various subcomponents according to their sector, maturity, and credit quality. This is done to improve the yield maturing in one to five years.
“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,” said Kurt MacAlpine, executive vice president and head of global distribution at WisdomTree. “Both CAGG and CAGS are great options for investors who are seeking to boost their incremental income potential while still mitigating risk."
Non-hedged units have been launched for both funds, and both have a management fee of 0.18%
For more of Wealth Professional's latest industry news, click here.
Related stories:
iShares launches new dividend ETF suite
Growing income opportunity from preferred shares?
