CIBC AM enters ETF market

By The IJ Staff | January 22 2019 11:30AM

Photo: Freepik

CIBC Asset Management announced Jan. 22 the launch of new exchange traded fund (ETF) solutions, including two strategic beta equity ETFs and two actively-managed fixed income ETFs.

"Our entry into the growing ETF industry is a natural extension of our investment capabilities, allowing us to deliver solutions that meet clients' varying investment needs when it comes to structure or price," says David Scandiffio, President and CEO, CIBC Asset Management.

Diversified exposure to Canadian and U.S. equity markets

The strategic beta ETFs are designed to act as core holdings, providing clients with diversified exposure to Canadian and U.S. equity markets using a proprietary rules-based approach, says the company. The intent of the actively-managed ETFs is to diversify fixed income portfolios and generate current income for investors, while preserving capital.

The following funds have begun trading on the Toronto Stock Exchange: CIBC Multifactor Canadian Equity ETF; CIBC Multifactor U.S. Equity ETF; CIBC Multifactor U.S. Equity ETF (CAD-Hedged); CIBC Active Investment Grade Floating Rate Bond ETF and CIBC Active Investment Grade Corporate Bond ETF.

Management fees for the ETFs range from 0.25 per cent to 0.35 per cent.