Shares Canada launches 3 unhedged ETFs

BlackRock Asset Management says iShares is launching three unhedged ETFs in Canada.

The new funds are its S&P 500 Index ETF, its MSCI EAFE IMI Index ETF, and its MSCI Emerging Markets IMI Index ETF. They began trading on the Toronto Stock Exchange today.

The company developed these funds since the economy is slow, and due to news the U.S. dollar is rebounding.

“Investors are looking beyond our border for better returns, so iShares is filling the gap [with] access to these markets, and with the opportunity to gain exposure to foreign market currencies, including the U.S. dollar,” says Mary Anne Wiley, managing director and head of iShares.

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She adds while many investors choose currency-hedged products to mitigate the impact of currency risk, unhedged options allow people to actively manage their currency exposure and the potential upside in their portfolios.

The &P 500 Index fund offers access to a market capitalization-weighted index consisting of 500 of the largest U.S. public issuers provided by S&P and a measure of broad U.S. stock market performance. Its management expense (MER) ratio is 0.14%. The MSCI EAFE IMI Index fund seeks to replicate MSCI EAFE Investable Market Index. It’s also a market capitalization-weighted index that includes securities from Europe, Australasia and the Far East. Its MER is 0.30% The MSCI Emerging Markets IMI fund seeks to replicate the MSCI Emerging Markets Investable Market Index, an equity benchmark for international stock performance. Its MER is 0.35%.

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Staff

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