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

By
Devon Layne
July 18, 2012
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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 DAILY DATA

'HEDJ,' the euro-hedged equity fund, added $199 million on Friday, Jan. 23, as total U.S.-listed ETF assets ended the day at $2.016 trillion.

'IWM,' 'HYG' and 'EEM' paced iShares' issuer-leading inflows on Friday, Jan. 23, as total U.S.-listed ETF assets rose to $2.106 trillion.

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