CI Global Asset Management has launched two new ETFs in Canada providing risk-managed exposure to global and US equity markets.
The CI Global Minimum Downside Volatility Index ETF (CGDV CN) and CI US Minimum Downside Volatility Index ETF (CUDV CN) have been listed on the Toronto Stock Exchange with management fees of 0.35% and 0.30%, respectively.
Each ETF regularly hedges its foreign currency exposure relative to the Canadian dollar, although non-hedged share classes are also available under the tickers CGDV.B CN and CUDV.B CN.
The ETFs are linked to the Solactive DM Minimum Downside Volatility Index and Solactive US Minimum Downside Volatility Index which includes companies that exhibit lower downside volatility compared to the total developed equity market. Each index is constructed to avoid excessive sector concentration and turnover.
Roy Ratnavel, Executive Vice-President and Head of Distribution for CI Global Asset Management, said: “One key to successful investing is simply avoiding losses. By focusing on companies with strong performance during market downturns, these mandates can play defense for investors’ portfolios. And because these ETFs seek to minimize downside volatility – as opposed to total volatility – they’re also well positioned to benefit from rising markets. Ultimately, their goal is to deliver a smoother journey to better overall long-term returns.”