First Asset launches Provincial Bond ETF

First Asset has launched a DEX Provincial Bond Index ETF.

The fund started trading on the TSX today under the ticker symbol PXF. Its management fee is 0.25% and it also offers Advisor Class shares under the symbol PXF.A.

Barry Gordon, president and CEO of First Asset, says this fund ETF provides a risk-adjusted return profile, given the spread between provincial government bonds and federal government bonds.

He adds, “The DEX Universe Provincial Bond Index…[has an] impressive track record of strong performance and delivers higher yield when compared to the Canadian government bond universe. Our fund replicates the government bond Index, and offers investors access to investment-grade provincial government bond yields and growth.”

The DEX provincial bond index is a sub-index of the DEX Universe Bond Index. It consists of semi-annual pay, fixed-rate provincial government bonds that are denominated in Canadian dollars.

They have an effective term to maturity of at least one year, a credit rating of BBB or higher and a minimum size requirement of $50 million per issue.

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Staff

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