Evolve Funds Group, an investment firm launched in November, has filed a preliminary prospectus with Canadian securities regulators as it seeks to launch five ETFs geared toward emerging trends and industries.
“We are excited to introduce these new and innovative ETF options to Canadian investors,” said Evolve Funds President and CEO Raj Lala
. In 2016, Lala was announced as the leader of WisdomTree
’s Canadian division, but he left the company after eight months.
He said he expects their Evolve North American Gender Diversity Index ETF (HERS) to be the first Canadian ETF to focus on gender diversity. Tracking the Solactive Equileap North American Gender Equality Index, HERS will provide exposure to Canadian and US companies that have committed to including gender diversity as part of their corporate social responsibility strategy.
The Evolve Cyber Security Index ETF (CYBR), meanwhile, is set to be the first Canadian ETF to focus on the rise of cyber protection as a priority among corporate CEOs and government officials. CYBR will aim to replicate the performance of the Solactive Global Cyber Security Index primarily through equity investments in international or domestic companies involved in cyber security.
The Evolve Automobile Innovation Index ETF (CARS), another first-of-its-kind ETF, will acquire stocks of companies involved in developing electric drivetrains, autonomous driving or network-connected services for automobiles. It will target the performance of the Solactive Future Cars Index.
The Evolve US Banks Enhanced Yield ETF (CALL) will invest in the equity constituents of the Solactive Equal Weight US Bank Index. It will also provide downside protection with covered call options on up to 33% of the portfolio securities, at the manager’s discretion based on market volatility and other factors.
Finally, the Evolve Global Healthcare Enhanced Yield ETF (LIFE) aims to track the performance of the Solactive Global Healthcare 20 Index by investing in its equity constituents. Like CALL, LIFE will include covered call options on up to a third of the portfolio’s holdings based on the best judgment of the manager.
Late in June, the firm filed a prospectus for four actively managed ETFs: the Evolve Active US Core Equity ETF, the Evolve Active Short Duration Bond ETF, the Evolve Active Canadian Preferred Share ETF, and the Evolve Active Floating Rate Loan ETF. The funds have not yet been launched.
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