Horizons ETFs has lowered the management fees on three Toronto-listed ETFs providing exposure to Canadian banking stocks, REITs, and preferred shares. Steve Hawkins, President and CEO of Horizons ETFs, said, “Not only will these ETFs be offered at lower fees than most other similar competitor products, but these ETFs also have the added value of offering low potential for tracking error, which can be an issue, particularly with income-generating ETFs like preferred shares.”

TD Asset Management (TDAM), a subsidiary of Toronto-Dominion Bank, has rolled out ten new ETFs on Toronto Stock Exchange. The ETFs are all actively managed and deliver a range of equity, fixed income, and real estate exposures. Robert Vanderhooft, Chief Investment Officer, TDAM, commented, “Whether you’re looking for a one-stop income solution, global exposure, or a core equity ETF, our expanded offering provides greater choice and opportunity for investors in the fast-growing Canadian ETF market.”

WisdomTree has launched a new actively managed ETF providing exposure to the mortgage-backed sector. The WisdomTree Mortgage Plus Bond Fund (MTGP US) has listed on NYSE Arca and is sub-advised by Voya Investment Management. The ETF primarily targets agency-backed MBS but may also seek opportunities in other sectors of the securitized debt market. Rick Harper, Head of Fixed Income and Currency at WisdomTree, commented, “We believe MTGP may be a compelling strategic option for investors seeking a generally more stable source of income”.

By Fong Yee, Senior Product Manager, Sustainable Investing, FTSE Russell.

Carbon intensive sectors are facing unprecedented scrutiny from governments, regulators, and markets. Since this can have a significant impact on liquidity and asset values – indeed, the effects are already becoming visible – it is a factor that investors cannot afford to ignore. The real estate sector, which is characterized by long-lived and energy-intensive assets, is one such target.

State Street Global Advisors (SSGA) has introduced an accumulating share class for the SPDR Dow Jones Global Real Estate UCITS ETF on London Stock Exchange and Xetra. The fund is physically backed and provides exposure to the global real estate market by tracking the Dow Jones Global Select Real Estate Securities Index.

Asset Management One has launched a new ETF on the Tokyo Stock Exchange (TSE), providing low-cost exposure to locally listed real estate companies. The One ETF Tokyo Stock Exchange REIT Index (2556 JP) tracks the Tokyo Stock Exchange REIT Index, a free-float market capitalization-weighted index based on all real estate investment trusts (REITs) listed on the TSE. With a management fee of just 0.16%, the fund offers one of the cheapest means for investors to access Japan’s property market.

Salvatore J. Bruno, Chief Investment Officer at IndexIQ, the issuer behind the $70 million IQ US Real Estate Small Cap ETF (ROOF US) investigates the investment case for small-cap real estate investment trusts (REITs). Based on historic valuations, Bruno finds that small-cap REITs are trading at an unusual discount and are offering substantially higher dividends than their large-cap counterparts.

Japan-based investment firm Simplex Asset Management has launched a new ETF on the Tokyo Stock Exchange (TSE), providing exposure to locally listed real estate companies. The Simplex TSE REIT ETF (2555 JP) tracks the Tokyo Stock Exchange REIT Index which is a free-float adjusted market capitalization-weighted index based on all real estate investment trusts (REITs) listed on the TSE.

By Salvatore J. Bruno, Chief Investment Officer, IndexIQ.

Real estate investment trusts (REITs) are off to a strong start in 2019, with the Morningstar US REIT Index up more than 14% year-to-date through 17 April 2019. On a trailing one-year basis, that number is a little over 17.5%. What’s behind this?

VanEck Australia has launched a new ETF – the VanEck Vectors FTSE International Property (Hedged) ETF (REIT AU) – on the Australian Securities Exchange. The fund is linked to an index from FTSE Russell that represents the AUD-hedged performance of real estate investment trusts (REITs) and other property companies listed in developed markets excluding Australia.