What’s new from fund manufacturers

Advisor’s Edge regularly lists notable developments in Canada’s investment product landscape. Here are some newly released funds.

• Canada’s first five single-stock ETFs — Alphabet (GOOGL) Yield Shares Purpose ETF (NEO: YGOG), Apple (AAPL) Yield Shares Purpose ETF (NEO: APLY), Amazon (AMZN) Yield Shares Purpose ETF (NEO: YAMZ), Berkshire Hathaway (BRK) Yield Shares Purpose ETF (NEO: BKRY) and Tesla (TSLA) Yield Shares Purpose ETF (NEO: YTSL) — began trading on Dec. 20. By writing covered call options and using up to 25% leverage, the ETFs pay higher yields than the dividends, if any, on the underlying stocks, while hedging U.S. currency exposure back to the Canadian dollar, Purpose Investments Inc. said in a release. All five have a management fee of 0.4%. Risk ratings are medium to high for Tesla and medium for the other four.
• CIBC has launched five new Canadian depositary receipts (CDRs) — AbbVie (ABBV), CVS Health (CVS), Honeywell (HON), Procter & Gamble (PG) and UPS (UPS) — for clients wanting an affordable way of accessing foreign stocks while mitigating currency risk, on the NEO exchange on Nov. 25. CIBC — first to market in Canada with its Amazon CDR in 2021 — now has 35 CDRs. Both CDRs and single-security ETFs “resolve friction in how Canadian investors buy global,” NEO Exchange chief revenue officer Erik Sloane said during the ETFGI Global ETFs Insights Summit Canada.
• Arrow Capital Management Inc. has launched an ETF version (TSX: ACAA) of its existing Canadian Advantage Alternative Class — originally launched in 2008 as Exemplar Canadian Focus Portfolio — for investors seeking medium- to long-term growth. The liquid alt ETF, which began trading on Nov. 30 and primarily buys Canadian stocks, can also use leverage, short-selling and derivatives and provide exposure to commodities such as agricultural, energy and metals. The management fee is 0.65%, and the risk rating is medium.

If you would like us to consider your launch, email Greg Meckbach at greg@newcom.ca.