Two new ETFs, one spicy, one sweet
Invest at once in 146 micro enterprises in the Canadian Venture Exchange, it is possible with the new iShares S & P / TSX Venture Index Fund (XVX).
For investors who like the spicy, the exchange traded fund (ETF) is composed of small companies in the mining and metals (57% of the portfolio) and oil and gas (36%).
On average, companies have a market capitalization of $ 145 million. The annual management fee is 0.79%. Bleeding hearts refrain: the TSX is very volatile. In 2008, the index crashed by 78% to 140% bounce back the following year. Since the beginning of the year, he lost a third of its value.
Another ETF iShares family made its first steps on the trading floor yesterday. It is aimed at a different clientele, that of conservative investors seeking interest income as high as possible.
The iShares Short Term Corporate Dex Universe + Maple Bond Index Fund (XSH) invests in corporate bonds with maturities ranging from one to five years. Two thirds of the bonds are issued by financial companies.
The fund differs from other similar existing ETFs, because it includes bonds issued in Canada by foreign companies, commonly known as Maple Bonds.
This dose of maple sugar helps the weighted average yield to maturity which amounts to 2.27%. But the fee is 0.25%. And unlike a bond, capital is not guaranteed.