Toronto-based XTF Capital, a wholly-owned subsidiary First Asset, has announced plans to launch seven new exchange traded funds under the “XTF Morningstar ETFs” banner.
Canada's XTF Capital is set to launch seven Morningstar Index ETFs, including one that tracks Québec-headquartered companies.
The XTF Morningstar ETFs are designed to offer exposure beyond basic market beta, leveraging Morningstar investment research in a transparent, low-cost and liquid vehicle.
“Morningstar is world renowned for the integrity of its research,” said Barry Gordon, President and CEO of First Asset. “XTF Capital is now offering ETFs to Canadian investors based on Morningstar’s proprietary indexes, including those derived from the highly regarded research created by Morningstar’s CPMS business.”
Three of the ETFs – XTF Morningstar Canada Dividend Target 30 Index ETF, XTF Morningstar US Dividend Target 50 Index ETF and XTF Morningstar National Bank Québec Index ETF – will begin trading on the Toronto Stock Exchange on Monday, 6 February.
Two more, XTF Morningstar Canada Value Index ETF and XTF Morningstar Canada Momentum Index ETF, are anticipated to commence trading on 15 February, 2012, while XTF Morningstar Canada Liquid Bond Index ETF and XTF Morningstar Emerging Markets Composite Bond Index ETF are expected to launch in the spring.
Each XTF Morningstar ETF provides investors with exposure to the performance of the respective Morningstar index as described below:
XTF Morningstar Canada Dividend Target 30 Index ETF
The XTF Morningstar Canada Dividend Target 30 Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar Canada Dividend Target 30 Index, net of expenses. This index reflects the performance of 30 dividend-paying, Canada-based equities, screened for, among other things, above-average returns on equity and high cash flows relative to debt.
XTF Morningstar National Bank Québec Index ETF
The XTF Morningstar National Bank Québec Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar National Bank Québec Index, net of expenses. This index, developed in association with National Bank of Canada, reflects the performance of equities with issuers headquartered in the province of Québec, Canada and is weighted according to the float capitalisation of the constituent securities.
XTF Morningstar US Dividend Target 50 Index ETF
The XTF Morningstar US Dividend Target 50 Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar US Dividend Target 50 Index, net of expenses. This index reflects the performance of 50 dividend-paying, US-based equities screened for, among other things, above-average returns on equity and high cash flows relative to debt.
XTF Morningstar Canada Value Index ETF
The XTF Morningstar Canada Value Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar Canada Value Index, net of expenses. This index is comprised of liquid equity securities of Canadian companies screened for low price-to-earnings ratios, low price-to-cash flow ratios, low price-to-book value and sales, and upward earnings estimate revisions.
XTF Morningstar Canada Momentum Index ETF
The XTF Morningstar Canada Momentum Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar Canada Momentum Index, net of expenses. This index is comprised of liquid equity securities of Canadian companies screened for above-average returns on assets and equity, with an emphasis on upward earnings estimate revisions and technical price-momentum indicators.
XTF Morningstar Canada Liquid Bond Index ETF
The XTF Morningstar Canada Liquid Bond Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar Canada Liquid Bond Index, net of expenses. This index includes the most liquid Canadian dollar-denominated federal government, provincial government and investment-grade corporate bonds.
XTF Morningstar Emerging Markets Composite Bond Index ETF
The XTF Morningstar Emerging Markets Composite Bond Index ETF has been designed to provide investors with economic exposure (by virtue of a forward agreement) to, to the extent possible, the performance of the Morningstar Emerging Markets Composite Bond Index, net of expenses. This index includes the most liquid sovereign and corporate bonds issued in U.S. dollars by the governments and corporations in Latin America, emerging Europe, Africa, Middle-East and Asia.