Canada Tip Sheet: First Asset Launches ETFs Based On Barbell Strategy

By
July 18, 2012
Share:

Related ETFs

Ticker Fund name
GXFGlobal X FTSE Nordic Region
Related ETF Lists
Europe ETFs

 

First Asset, the Toronto-based investment management firm, brought three ETFs to market that employ so-called barbell fixed-income investment strategies targeting both the long and short ends of the yield curve to help investors negotiate the uncertain rate outlook, according to an article published by the Wall Street Journal.

The ETFs, the first of their kind in Canada, are:

  • First Asset DEX Government Bond Barbell Index ETF (TSX:GXF)
  • First Asset DEX Corporate Bond Barbell Index ETF (TSX:KXF)
  • First Asset DEX All Canada Bond Barbell Index ETF (TSX: AXF)

 

Each fund puts half of its holdings in maturities of 10 to 20 years, 25 percent in maturities of two years or less, and the other quarter in floating-rate instruments, the Journal article said.

Part of the appeal of barbell-based funds is that, in comparison with other fixed-income strategies, they are less affected by interest rate changes, according to the article.

For the full story, visit Online.Wsj.com.

ETF.COM CHANNELS

Trying to figure out alternatives ETFs? Use our alternatives ETFs channel, library and ETF screener!

Want to learn more about smart-beta ETFs? Check out our smart-beta guide, essentials library and ETF screener!

ETF DAILY DATA

The broad-market 'SPY' and energy ETF 'XLE' were the biggest winners in terms of inflows on Thursday, Aug. 27.

The top three ETF issuers all saw net inflows into their products as the market surged on Thursday, Aug. 27.

ETF.COM ANALYST BLOGS

By Dave Nadig

With many ETFs currently trading well off fair value, what’s an ETF investor to do? Don’t panic.

By Matt Hougan

Out-of-favor funds can bring attractive returns.

By Matt Hougan

New data from Charles Schwab show that the death of mutual funds is happening faster than we thought.

By Dave Nadig

Grab the popcorn. Precidian just doubled-down on its nontransparent active ETF proposal with the SEC this morning.

ETF INDUSTRY PERSPECTIVE

By John Del Vecchio

An index that goes long financially sound companies and shorts the ones with problematic balance sheets.

By Dan Draper

The nature of retirement is changing. How can investors adapt?

By Invesco PowerShares

A more in-depth look at the smart-beta survey's results.