Manulife Investments has expanded its line-up of multifactor ETFs by launching two new funds on the TSX. Both ETFs are sub-advised by Dimensional Fund Advisors, a pioneer of multifactor investing.
“Manulife Investments is focused on creating a holistic suite of value-added investment products for Canadians," said Bernard Letendre, president of Manulife Investments. “These two new offerings to our ETF platform, managed by Dimensional Fund Advisors, helps move us closer to that goal.”
The Manulife Multifactor Canadian SMID Cap Index ETF (MCSM) invests primarily in Canadian small- and mid-cap equities; these include companies whose market capitalizations fall between the 75th and 251st Canadian companies at the time of rebalancing. With a management fee of 0.60%, it seeks to replicate the performance of the John Hancock Dimensional Canadian SMID Cap Equity Index (CAD).
Meanwhile, the Manulife Multifactor US Small Cap Index ETF, which makes direct or indirect investments primarily in US-listed small-cap equities, is available in both hedged (MUSC) and unhedged units (MUSC.B). The fund seeks to replicate the performance of the John Hancock Dimensional Small Cap Index (CAD Hedged), which includes US equity securities from companies that are smaller than the 750th largest US company, but excludes the smallest 4% of US companies at the time of rebalancing. The management fee for MUSC.B is 0.50%, while the fee for MUSC is 0.55%.
The indices tracked by the ETFs were developed by Dimensional through its time-tested multifactor approach, taking into account efficient implementation of strategies into indices using its Index Memory technique.
Multi-factor ETFs gain on fears of market pullback
Manulife announces green bond offering
More market talk: