Purpose to close enhanced US equity ETF

Jun 25th, 2019 | By | Category: Equities

Purpose Investments has announced the upcoming closure of the Purpose Enhanced US Equity Fund (PEU CN).

Purpose to close enhanced us equity etf

The ETF is scheduled to delist from the Toronto Stock Exchange on 27 August 2019.

The actively managed ETF uses a multi-factor selection process to build a portfolio of North American equities with strong value, growth, and quality characteristics.

The fund can utilize leverage up to 130% on the long side of the portfolio but hedges the exposure so that the net long market exposure is 100%.

This strategy was designed to take advantage of the expected alpha associated with the fund’s individual portfolio investments while maintaining a level of risk similar to the overall market.

It has a management fee of 0.80%.

Currently listed on Toronto Stock Exchange, the fund is scheduled to terminate on 27 August 2019. The ETF will liquidate its holdings and proceeds will be sent to remaining shareholders shortly thereafter.

Purpose has cited the fund’s relatively low assets under management (approximately CAD$4 million) and the costs associated with maintaining an ETF of this size as its main motivations for closing the fund.

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