New investment products aim to follow indexes developed through investment research by CIBC
Three new ETFs have just been announced by First Asset Investment Management Inc: First Asset US Tactical Sector Allocation Index ETF (FUT); First Asset Canadian Dividend Low Volatility Index ETF (TSX: FDL) and First Asset U.S. Equity Multi-Factor Index ETF (TSX: FUM). All three have already commenced trade on the TSX.
“We are pleased to extend these additional three CIBC Equity Index Strategies to retail investors through First Asset ETFs,” said First Asset Investment Management Inc. President and CEO Barry Gordon. “This is a unique opportunity for investors to benefit from a range of quantitative indices designed by one of Canada's leading index strategy teams, while also enjoying the benefits of the ETF structure, including transparency, tax efficiency, liquidity and low cost."
The announcement describes FUM as a portfolio of US company securities that exhibit low beta and high profitability coupled with low leverage. They are also value stocks, characterized by low price-earnings and price-to-book ratios.
Meanwhile, FDL is a sleeve of equity securities from TSX-listed issuers. The components of the portfolio are each characterized by low beta and high dividend yield.
Finally, FUT is a portfolio of ETFs that spreads exposure among equity sectors, short-term fixed income, and mid-term fixed income investments. The fund is allowed to pivot from 100% exposure to nine US equity sectors to 100% exposure to fixed income, depending on whether the equity sectors are showing positive or negative momentum.
Unlike conventional passive index funds that simply follow a defined index, the new ETFs each use a proprietary rules-based methodology developed by CIBC Capital Markets from its research.
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