Evolve announces new ETF offerings

The firm is introducing a new twist on a top-performing strategy as well as Canada-first thematic fund

Evolve announces new ETF offerings

Evolve Funds has announced new additions to its ETF lineup.

The firm has launched US dollar-denominated, unhedged ETF units (CYBR.U) of its Evolve Cyber Security Index Fund on the TSX. CYBR.U joins the Canadian dollar-hedged (CYBR) and Canadian dollar unhedged (CYBR.B) units of the fund; CYBR.B was Canada’s top performer out of 510 Canadian unlevered equity ETFs for the 2018 calendar year.

“We launched CYBR.U in response to a number of requests from advisors for an unhedged U.S. dollar CYBR class for accounts they manage on behalf of their clients,” said Evolve ETFs President and CEO Raj Lala. “Cyber security remains a non-discretionary spend for businesses and a driving force for the continuous growth of the global economy.”

Seeking to replicate the Solactive Global Cyber Security Index Canadian Dollar Hedged, CYBR invests primarily in equity securities of domestic or foreign companies involved in the cyber security industry through hardware and software development.

Evolve has also filed a preliminary prospectus for another ground-breaking ETF. The Evolve E-Gaming Index ETF, with the ticker symbol HERO, is designed to provide access to equity securities of domestic and globally-listed companies, and other issuers, with business activities in the electronic gaming industry.

“We are very pleased to be announcing the filing for Canada's first eGaming ETF,” Lala said. “Three-quarters of all Americans have at least one gamer in their household with over 164 million adults in the U.S. playing video games.”

Lala also pointed to the sport’s global audience of more than 300 million fans — which is still growing — as well as eSports leagues’ successful efforts at building “a professional gaming ecosystem comprised of sold out arenas, big name sponsorship opportunities and streaming deals with tech giants like Amazon and Facebook.”

HERO seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of the Solactive eGaming Index. The index includes other games software, online game websites and software, handheld and smart phone games software, console games software, and electronic gaming/entertainment electronics makers.

Published in Canadian dollars, the HERO Index undergoes a composition review on a quarterly basis. Each constituent security is weighted based on its market capitalization relative to other index constituents, with no constituent issuer getting more than a 10% allocation within the portfolio.


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