CIBC launches two new core portfolio ETFs

Jan 25th, 2023 | By | Category: ETF and Index News

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CIBC Asset Management has launched two new ETFs on Toronto Stock Exchange providing low-cost access to core equity and fixed income exposures.

David Scandiffio, President and CEO, CIBC Asset Management

David Scandiffio, President and CEO of CIBC Asset Management.

The new listings include a short-duration, multi-sector Canadian bond ETF and a currency-hedged US equity fund.

Both ETFs track indices created by Morningstar and are priced amongst the lowest-cost for their category.

The CIBC Canadian Short-Term (CSBI CN) tracks the Morningstar Canada 1-5 Y Core Bond Index which covers investment-grade sovereign and corporate debt issued in Canada with remaining maturities between one and five years. The fund comes with a management fee of 0.07%.

The CIBC US Equity Index ETF (CUEH CN), meanwhile, tracks the Morningstar US Target Market Exposure Hedged CAD Index which provides market-cap-weighted exposure to firms making up approximately the top 85% of the total market capitalization in the US. The fund has a management fee of just 0.05%.

David Scandiffio, President and CEO of CIBC Asset Management, said: “CIBC is pleased to leverage the high-caliber index construction capabilities of Morningstar to present low-cost, diversified solutions for our clients’ investment needs. These new ETFs offer investors broad exposure to the Canadian short-term bond market, as well as currency-hedged exposure to US equities.”

The new listings build on CIBC’s existing range of low-cost core portfolio ETFs introduced in March 2021 which include three non-hedged equity funds targeting Canadian, US, and developed ex-North America stocks, as well as a fixed income fund delivering broad maturity Canadian aggregate bond exposure.

The firm has also announced it will roll out another low-cost core ETF towards the end of February providing currency-hedged exposure to developed market equities located outside of North America. The CIBC International Equity Index ETF (CIEH CN) will track the Morningstar Developed Markets ex-North America Target Market Exposure Hedged CAD Index and will have a management fee of 0.16%.

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