CI Global Asset Management has launched two thematic equity ETFs in Canada providing exposure to companies within the fields of ‘biological revolution’ and ‘digital security’.
CI Global has launched two ETFs targeting the bio-revolution and digital security investment themes.
The CI Bio-Revolution ETF (CDNA CN) and CI Digital Security ETF (CBUG CN) have been listed on Toronto Stock Exchange and come with management fees of 0.40%.
Roy Ratnavel, Head of Distribution for CI Global Asset Management, said: “These new ETFs allow investors to focus on the exceptional growth potential of two dynamic, innovative sectors of the global economy.”
Bio-revolution
The CI Bio-Revolution ETF targets companies that have the potential to be significantly transformed by advancements in genetics and biotechnology.
The fund is linked to the Solactive Global Genomics Immunology and Medical Revolution CAD Hedged Index which selects its constituents from a universe of developed market companies with market capitalizations above $1.5 billion and average daily trading volumes greater than $25 million.
Security selection is driven by Solactive’s proprietary natural language processing algorithm, called ARTIS, which identifies firms linked to a specific theme by screening publicly available information such as financial news, business profiles, and company publications for appropriate keywords.
With reference to the bio-revolution theme, the algorithm is programmed to identify companies with business operations linked to medicines and vaccines; gene editing, sequencing, and diagnostics; the development of tools that research genetic variations and functions; and the treatment of various types of cancer and related complications.
The methodology selects the 50 stocks with the highest ARTIS thematic scores. Constituents are initially equally weighted and then adjusted to increase the weight of those with higher ARTIS scores.
The index is rebalanced semi-annually with buffer rules helping to limit unnecessary turnover.
Digital security
The CI Digital Security ETF, meanwhile, focuses on businesses that fortify and protect networks and systems from cyber threats.
The fund tracks the Solactive Digital Security CAD Hedged Index which selects its constituents from a universe of developed and emerging market companies with market capitalizations above $500m and average daily trading volumes greater than $1m.
Security selection is also driven by ARTIS which identifies companies with business operations linked to digital security technologies, management, software, and platforms.
The methodology targets 40 stocks using the same selection and weighting approach as described above.
Both ETFs regularly hedge their foreign currency exposure back to the Canadian dollar.