ETF Canada

CANADA 13Canadian investors now have a unique opportunity to access the US market with Morningstar Index powered ETFs...

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Building on the success of its top performing exchange traded funds1 (ETFs) powered by Morningstar Canadian equity indices, First Asset Investment Management Inc. (First Asset), an independent Canadian investment management company, is pleased to announce the launch of two new equity ETFs replicating Morningstar U.S. equity indices, which will commence trading today on The Toronto Stock Exchange (TSX): First Asset Morningstar US Momentum Index ETF (TSX - symbol YXM) and First Asset Morningstar US Value Index ETF (TSX - symbol XXM).

XXM and YXM replicate indexes that apply Morningstar CPMS rules-based methodologies that are similar to those used in both First Asset Morningstar Canada Value Index ETF (TSX - symbol FXM), which has a 28.8% 1-year return (21.3% S.I.), and First Asset Morningstar Canada Momentum Index ETF (TSX - symbol WXM), which has a 17.9% 1 year return (15.9% S.I.)2.

Starting today, Canadian investors will be able to tap into the breadth, depth and diversification potential of the U.S. market with these offerings that have been designed to replicate, to the extent possible, the performance of the MorningstarĀ® US Momentum Target 50 IndexTM and MorningstarĀ® US Value Target 50 IndexTM, as applicable, net of expenses.

YXM has been designed to provide diversified exposure to the top 50 U.S.-based equities that demonstrate, among other things, positive momentum in earnings and price. XXM provides diversified exposure to the top 50 U.S.-based equities that are, among other things, considered to be "good value" based on characteristics like low price-to-earnings and low price-to-cash flow ratios.

These ETFs will be denominated in Canadian dollars but will be offered in hedged and un-hedged versions to provide investors with the flexibility to choose whether they want exposure to the U.S. currency. These ETFs will also offer Advisor Class units in both hedged and un-hedged versions.

"As a result of the success of our First Asset Morningstar Canada Value and Canada Momentum Index ETFs launched last year, investors have been asking us to deliver U.S. equivalents that leverage the same proven methodologies and strategies," said Barry Gordon, President and CEO of First Asset. "At First Asset, we are committed to developing solutions that aim to deliver superior risk-adjusted returns, and we are pleased to add these U.S. Equity ETFs to our product portfolio."

"We are delighted to expand our relationship with First Asset by licensing the Morningstar US Momentum and US Value Indexes for exchange-traded funds," said Sanjay Arya, head of Morningstar Indexes. "These indexes incorporate the highly regarded investment research of Morningstar CPMS, an equity research platform that has served investment professionals for almost 30 years."

In addition to the launch of YXM and XXM, First Asset is pleased to announce that un-hedged Common and Advisor Class units of First Asset Morningstar US Divided Target 50 Index ETF (UXM) will also commence trading today on the TSX under ticker symbols UXM.B and UXM.D, respectively. UXM seeks to replicate the performance of the MorningstarĀ® US Dividend Target 50 Index. This Index applies Morningstar's CPMS methodology to screen for the top 50 dividend-paying, U.S.-based equities that have, among other things, above-average returns on equity and high cash flows relative to debt.

Today's announcement comes as part of a long line of product innovations from First Asset, which has a track record of market "firsts" in Canada: the first convertible bond ETF, the first Canadian ETFs that track Morningstar indexes, the first Quebec-based ETF, the first ETFs to employ a barbell bond strategy, and the first broad Provincial bond ETF.

U.S. Equity ETFs launched today:

Name of ETF                             TSX TICKER SYMBOL                   
First Asset Morningstar US Momentum     YXM (Hedged Common units)           
 Index ETF                              YXM.A (Hedged Advisor Class units)  
                                        YXM.B (Unhedged Common units)       
                                        YXM.D (Unhedged Advisor Class units)
First Asset Morningstar US Value Index  XXM (Hedged Common units)           
 ETF                                    XXM.A (Hedged Advisor Class units)  
                                        XXM.B (Unhedged Common units)       
                                        XXM.D (Unhedged Advisor Class units)

New units of First Asset Morningstar US Dividend Target 50 Index ETF launched today:

New Units                               TSX TICKER SYMBOL                   
Unhedged Common units                   UXM.B                               
Unhedged Advisor Class units            UXM.D                               

UXM (UXM in respect of the Unhedged Common units and Unhedged Advisor Class units only), XXM and YXM have closed the initial offerings of their units and the units will begin trading on the Toronto Stock Exchange when it opens this morning. 

Source: ETFWorld - First Asset

Wilshire Micro-Cap ETF (based on the Wilshire US Micro-Cap Index)

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