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

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

ETF DAILY DATA

The AlphaDex financial fund 'FXO' led inflows on Tuesday, May 26, but net outflows and falling stocks pulled total U.S.-listed ETF assets down to $2.152 trillion.

A slew of redemptions from a number of iShares bond funds helped fuel that firm's issuer-leading outflows on Tuesday, May 26. Meanwhile, net outflows and a falling market dragged down total U.S.-listed ETF assets to $2.152 trillion.

ETF.COM ANALYST BLOGS

By Olly Ludwig

Yields will one day head higher, so is it time to get bond exposure outside the U.S.?

By Rachael Revesz

Stop dancing around the subject, call women ‘women’ and let’s be a more visible part of this industry.

By Olly Ludwig

It’s no secret that hedge funds love ETFs, but what’s less appreciated is that their love of ETFs will likely spell their demise.

By Olly Ludwig

Yes, bond yields are ticking higher these days, but it’s important to keep the whole yield-curve picture in mind.

ETF INDUSTRY PERSPECTIVE

By Nasdaq Global Indexes

Bond exposure or bond performance? Only defined maturity indexes provide the latter.

By Invesco PowerShares

Invesco PowerShares and Market Strategies International’s second annual survey provides vital insights about smart beta and ETFs overall.

By Invesco PowerShares

Investors are implementing smart-beta exchange-traded funds (ETFs) in their portfolios in a variety of ways and for different reasons.