Currency-hedged emerging market ETF announced

Currency-hedged emerging market ETF announced

Currency-hedged emerging market ETF announced Aiming to satisfy investors who are looking for consistent returns, Sphere Investments has just expanded its shelf of sustainable yield ETFs with the new Sphere FTSE Emerging Markets Sustainable Yield Index ETF (SHZ).

“Given the recent strength in emerging markets, we are excited to offer this new product to investors and complete our suite of sustainable yield ETFs,” said Lewis Bateman, CEO and founder of Sphere Investments. “With the emerging markets product, our sustainable yield methodology now gives investors access to all global markets.”

SHZ is the fifth smart-beta ETF to be launched by Sphere Investments in Canada. The product joins four other TSX-listed Sphere ETFs, namely:
  • Sphere FTSE Asia Sustainable Yield Index ETF (SHA)
  • Sphere FTSE Canada Sustainable Yield Index ETF (SHC)
  • Sphere FTSE Europe Sustainable Yield Index ETF (SHE)
  • Sphere FTSE US Sustainable Yield Index ETF (SHU)
Backed by reputable partners  FTSE Russell and State Street, all Sphere sustainable yield ETFs come with the same flat fee of 54 bps.

“As a leading global index provider with strong ties to the Canadian market, we are excited to extend our collaboration with Sphere Investments,” said FTSE Russell Canada Director Jacqueline O'Flanagan. “With our extensive global market coverage and record of innovation, our indexes are uniquely suited to help Canadian investors gain exposure to companies around the world with a sustainable yield, no past or forecast dividend cuts, a sustainable payout ratio and strong financial and operating characteristics.”

SHZ aims to replicate, before fees and expenses, the performance of the FTSE Emerging Sustainable Yield 150 10% Capped 100% Hedge CAD Index. It will do this by investing, directly or indirectly, in up to 150 equity securities of public issuers from emerging market countries as classified by FTSE, which exhibit relatively high and sustainable yields at the time of rebalancing.

“As the only currency hedged, smart beta emerging markets ETF in Canada, this product will offer investors protection against international currency exposure, while delivering excellent value backed by FTSE's leading index methodology,” said Sphere Investments President & Chief Investment Officer Keith McLean.

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