Evermore Capital launches target-date retirement ETFs

Evermore Capital Inc. announced Wednesday eight new ETFs designed for investors retiring at five-year intervals from 2025 through 2060.

The Evermore Retirement ETFs are the first target-date ETFs in Canada, the firm said in a release announcing the new funds, which began trading Wednesday on the NEO Exchange.

Until now, funds designed specifically for retirement in or around a given year were available only via group RRSP plans or as mutual funds, Evermore co-founder and CEO Myron Genyk said in a post on the Evermore website.

“It became obvious that target date ETFs were the low-cost, all-in-one retirement solution that most Canadians would find easy to understand and even easier to implement,” he stated.

All eight ETFs have management fees of 0.35% and their risk ratings are low or low to medium. The funds invest in a basket of low-fee index ETFs.

The products use a glide path approach: the asset allocation gradually becomes more conservative as the investor approaches retirement, increasing the percentage of assets allocated to fixed income securities and/or money market investments.

Genyk and chief marketing officer Greg White co-founded Toronto-based Evermore in 2021. Genyk previously worked for BlackRock Canada, where he was responsible for ETF markets.

White, who started his career in 1999 at CIBC Wood Gundy, later ran his own media and marketing consultancy serving the capital markets industry while also producing and hosting Scotiabank’s Market Points podcast.

CIBC Asset Management veteran Brian See is the firm’s chief investment officer.

Other firms have also come out with products in recent years targeting investors seeking retirement income. Last year Purpose Investments introduced the Longevity Pension Fund, which has characteristics of an annuity or pension plan with monthly lifetime distributions when investors turn 65. In 2020, Vanguard launched the Vanguard Retirement Income ETF Portfolio, offering investors a target payout of 4% per year.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.