New offerings aim to provide investors with increased yield potential while mitigating risk
TORONTO, June 26, 2017 /CNW/ - WisdomTree Asset Management Canada, Inc. ("WisdomTree Canada"), today announced the launch of two smart beta fixed income ETFs, the WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF ("CAGG") and the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF ("CAGS") (collectively the "Funds"). WisdomTree Canada has completed the initial public offering of the non-hedged units of the Funds. The non-hedged units of the WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF and the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF will commence trading on the Toronto Stock Exchange ("TSX") today under the ticker symbols CAGG and CAGS, respectively. The Funds seek to increase yield for investors and benefit from the diversification of a multi-sector portfolio while maintaining a balance between risk and return, shifting exposure across sectors, levels of interest rate risk and credit risk.
- WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF (TSX: CAGG) seeks to enhance income potential by sourcing and reweighting subcomponents within the Bloomberg Barclays Canadian Aggregate Index (Canadian Agg). CAGG seeks to track, to the extent possible, the price and yield performance of the Bloomberg Barclays Canadian Aggregate Enhanced Yield Index, before fees and expenses. The Fund's management fee is 0.18%.
- WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (TSX: CAGS) seeks to enhance yield by sourcing and reweighting subcomponents within the 1-5 year segment of the Canadian Agg. CAGS seeks to track, to the extent possible, the price and yield performance of the Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index, before fees and expenses. The Fund's management fee is 0.18%.
"Despite the prospect of rising interest rates, investors don't have to look outside Canada to benefit from the steady income and lowered volatility expected from the bond market. These new offerings are designed to minimize portfolio exposure to low-yielding securities like treasuries and to enhance yield," said Kurt MacAlpine, Executive Vice President, Head of Global Distribution at WisdomTree. "Both CAGG and CAGS are great options for investors who are seeking to boost their incremental income potential while still mitigating risk."
With the addition of these two new ETFs, WisdomTree now offers 8 ETFs for Canadian investors, helping them gain exposure to broad international equities and fixed income through innovative, dividend-focused methodologies while managing foreign currency exposure through a variety of hedged, non-hedged and variably hedged strategies.
Further information about the funds can be found at www.wisdomtree.com.
The WisdomTree ETFs listed on the Toronto Stock Exchange are managed by WisdomTree Asset Management Canada, Inc. Commissions, management fees and expenses all may be associated with investing in WisdomTree ETFs. Please read the relevant prospectus, which is available at WisdomTree.com, before investing. WisdomTree ETFs are not guaranteed. Their values change frequently, and past performance may not be repeated.
Bloomberg Barclays Canadian Aggregate Enhanced Yield Index: A broad-based benchmark that measures the investment grade, Canadian dollar-denominated, and fixed-rate bond market. The index includes treasuries, government-related, corporate issues from developed and emerging markets issuers.
Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index: A constrained, rules-based approach that reweights the sector, maturity and credit quality of the Bloomberg Barclays Canadian Aggregate Index across various subcomponents in order to enhance yield maturing in one to five years.
BLOOMBERG® is a trademark and service mark of Bloomberg Finance L.P. and its affiliates (collectively "Bloomberg"). BARCLAYS® is a trademark and service mark of Barclays Bank Plc (collectively with its affiliates, "Barclays"), used under license. Bloomberg or Bloomberg's licensors, including Barclays, own all proprietary rights in the Bloomberg Barclays Indices. Neither Bloomberg nor Barclays is affiliated with WisdomTree, and neither approves, endorses, reviews or recommends the WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF (CAGG) or the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF (CAGS). Neither Bloomberg nor Barclays guarantees the timeliness, accurateness or completeness of any data or information relating to the Bloomberg Barclays Canadian Aggregate Enhanced Yield Index or the Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index, and neither shall be liable in any way to WisdomTree, investors in CAGG or CAGS or other third parties in respect of the use or accuracy of the Bloomberg Barclays Canadian Aggregate Enhanced Yield Index or the Bloomberg Barclays Canadian Short Aggregate Enhanced Yield Index or any data included therein.
About WisdomTree
WisdomTree Investments, Inc., through its subsidiaries in the U.S., Europe, Japan and Canada (collectively, "WisdomTree"), is an exchange-traded fund ("ETF") and exchange-traded product ("ETP") sponsor and asset manager headquartered in New York. WisdomTree offers products covering equities, fixed income, currencies, commodities and alternative strategies. WisdomTree currently has approximately US$45.4 billion in assets under management globally.
SOURCE WisdomTree Asset Management Canada, Inc.
Canada Media: NATIONAL Public Relations, Suzanne Diab, +1.416.848.1399, [email protected]; Contact Information: WisdomTree Asset Management Canada, Inc., 161 Bay Street, 27th Floor, Toronto, Ontario M5J 2S1, +1.416.304.9225 / +1.866.893.8733, [email protected]
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