First Asset bulks up ETF lineup

First Asset, a Canadian investment management company, has launched three ETFs that will track DEX indexes.

First Asset DEX Government Bond Barbell Index ETF, First Asset DEX Corporate Bond Barbell Index ETF and First Asset DEX All Canada Bond Barbell Index ETF, which begin trading on the TSX as of July 10, are claimed to be the first ETFs to engage a barbell bond strategy designed to provide investors steady income and flexibility.

“The First Asset Barbell Bond ETFs, and the DEX Indexes which they replicate, allocate investment grade, fixed-income securities in a balanced way, combining 50% short-term and floating-rate bonds with 50% in higher yielding longer term bonds,” says Barry Gordon, president and CEO, First Asset ETFs.

A barbell bond investment strategy allocates the total portfolio equally between short-term and long-term bonds. Specifically, it’s a balanced approach that combines the benefits of the higher yields offered by longer-term bonds, balanced by the defensiveness and flexibility offered by short-term and floating-rate bonds.

Typically, barbell strategies are employed by institutions, portfolio managers and sophisticated investment advisors but were not previously available in an ETF format in Canada.

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