Mackenzie introduces nine new ETFs on TSX

Sep 28th, 2020 | By | Category: Alternatives / Multi-Asset

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Mackenzie Investments has introduced nine new ETFs on the Toronto Stock Exchange, deploying a range of investment strategies across equity, fixed income, and alternative asset classes.

Michael Cooke Mackenzie

Michael Cooke, Senior Vice President and Head of ETFs, Mackenzie Investments.

Mackenzie’s ETF suite now stands at 41 funds across active, smart beta, and market-cap-weighted index solutions.

Mackenzie launched its first ETFs in 2016 and now has ETF assets under management of more than $7.5 billion.

Michael Cooke, Senior Vice-President and Head of ETFs at Mackenzie Investments, commented, “We’re committed to providing Canadian investors and financial advisors with simple, effective building blocks to help them construct diversified portfolios.”

Cooke added, “We’re excited to be adding to our existing line-up of ETF solutions made for Canadians, by Canadians. Canadian-domiciled ETFs can provide numerous advantages including potential tax efficiencies and an ability to more effectively address the often-unique needs of local investors.”

Equity

The Mackenzie Global Sustainable Dividend Index ETF (CAD – MDVD CN; USD – MDVD.U) tracks the Solactive Developed Markets Sustainable Dividend Select Index. The index screens a universe of dividend-paying stocks from developed markets to remove firms that may be at a higher risk of cutting or eliminating their payouts in the future. Companies with payout ratios above one, those with excessively high debt/equity ratios, and those that have already reduced their dividends in the past five years are excluded. The methodology then filters for the 200 stocks with the highest dividend yields and, from this reduced pool, selects the 100 securities with the lowest share price volatility. Constituents are weighted by free-float market capitalization subject to a 5% cap. The fund’s management fee is 0.25%.

Fixed income

The Mackenzie US Aggregate Bond Index ETF (CAD-Hedged) (QUB CN) tracks the Solactive US Aggregate Bond Hedged to CAD Index. The market value-weighted index includes investment-grade government bonds, corporate bonds, asset-backed securities, commercial mortgage-backed securities, and mortgage pass-through securities that are denominated in US dollars and have at least one year to maturity. Currency exposure between the US dollar and Canadian dollar is hedged on a monthly basis. The fund’s management fee is 0.15%.

The Mackenzie Developed ex-North America Aggregate Bond Index ETF (CAD-Hedged) (QDXB CN) tracks the Solactive Ex-North America DM Select Global Aggregate Bond Hedged to CAD Index. The index covers the same fixed income sectors as described above but focuses on bonds denominated in developed market currencies excluding the US dollar and Canadian dollar. Currency hedging relative to the Canadian dollar is also applied on a monthly basis. The fund’s management fee is 0.30%.

The Mackenzie Global Fixed Income Allocation ETF (MGAB CN) is actively managed and designed to serve as a one-ticker fixed income solution. The fund primarily invests in other ETFs to provide exposure to a fixed income portfolio diversified by sector, geography, credit quality, duration, currency, and other relevant factors. Exposure to high yield corporate bonds and emerging market sovereign debt is capped at 25%. The fund’s management fee is 0.25%.

Alternative investments

The Mackenzie Developed Markets Real Estate Index ETF (QRET CN) tracks the Solactive GBS Developed Markets Real Estate CAD Index. The index includes real estate investment trusts (REITs) and other real estate development companies that are listed in developed markets and have a minimum market cap of €1 billion. Constituents are weighted by float-adjusted market cap. The fund’s management fee is 0.40%.

The Mackenzie Global Infrastructure Index ETF (QINF CN) tracks the Solactive Global Infrastructure Select Index. The index consists of the 100 largest developed market companies that are assigned to infrastructure-related sub-industries according to FactSet. Constituents are weighted by market capitalization subject to a 5% cap per security. The fund’s management fee is 0.40%.

Asset allocation

The asset allocation ETFs invest in a mix of Mackenzie’s equity and fixed income ETFs to provide globally diversified multi-asset exposure. The Mackenzie Conservative Allocation ETF (MCON CN) targets a 40/60 long-term allocation to equity and fixed income, the Mackenzie Balanced Allocation ETF (MBAL CN) targets a 60/40 equity to fixed income split, and the Mackenzie Growth Allocation ETF (MGRW CN) primarily invests in equities with a 20% allocation to fixed income. Each asset allocation ETF comes with an expense ratio of 0.17%.

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