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Mackenzie launches two smart beta ETFs

By Andrew Rickard | June 22 2016 01:29PM

Mackenzie Financial Corporation has added two smart beta exchange traded funds (ETFs) to its lineup.

On June 21, Mackenzie announced that it has partnered with the Parisian asset manager TOBAM to create two new ETFs. In these smart beta funds, the managers have adjusted the weightings of indexed holdings to protect the portfolios from structural bias and unmanaged risks. The two new funds are:

  • The Mackenzie Maximum Diversification Canada Index ETF, which invests primarily in Canadian equity securities and aims to replicate the performance of the TOBAM Maximum Diversification Canada Index.
  • The Mackenzie Maximum Diversification US Index ETF, which invests primarily in U.S. equity securities and aims to replicate the performance of the TOBAM Maximum Diversification USA Index.

In general, the funds strive for more stable returns than market-cap weighted benchmarks and to correct for implicit biases in terms of sector and style.

“In today's financial environment, investors are looking for additional ways to position their portfolios to help them keep pace with constantly changing markets,” comments Michael Cooke, head of exchange traded funds at Mackenzie. “For investors rethinking their core holdings, these funds aim to enhance diversification that may help achieve superior performance with lower risk over reasonable periods of time.”

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