First Asset launches two equity ETFs

First Asset Investment Management Inc. is launching two equity ETFs replicating Morningstar U.S. equity indices. First Asset Morningstar U.S. Momentum Index ETF and First Asset Morningstar U.S. Value Index ETF will start trading today on the TSX.

These ETFs have been designed to replicate, to the extent possible, the performance of the Morningstar U.S. Momentum Target 50 Index and Morningstar U.S. Value Target 50 Index, as applicable, net of expenses.

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First Asset Morningstar US Momentum Index ETF has been designed to provide diversified exposure to the top 50 U.S.-based equities that demonstrate, among other things, positive momentum in earnings and price. First Asset Morningstar U.S. Value Index ETF provides diversified exposure to the top 50 U.S.-based equities that are, among other things, considered to be “good value” based on characteristics like low price-to-earnings and low price-to-cash flow ratios.

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These ETFs will be denominated in Canadian dollars but will be offered in hedged and un-hedged versions to provide investors with the flexibility to choose whether they want exposure to the U.S. currency. These ETFs will also offer Advisor Class units in both hedged and un-hedged versions.

In addition to the launch of these ETFs, un-hedged Common and Advisor Class units of First Asset Morningstar U.S. Divided Target 50 Index ETF will also start trading today on the TSX. First Asset Morningstar U.S. Divided Target 50 Index ETF seeks to replicate the performance of the Morningstar U.S. Dividend Target 50 Index. This Index applies Morningstar’s CPMS methodology to screen for the top 50 dividend-paying, U.S.-based equities that have, among other things, above-average returns on equity and high cash flows relative to debt.

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