Evolve Funds Group Inc. has introduced the following exchange traded funds in Canada: Evolve US Banks Enhanced Yield ETF (CALL); Evolve Active US Core Equity ETF (CAPS); and Evolve Active Short Duration Bond ETF (TIME).
The Evolve ETFs began trading on the Toronto Stock Exchange Oct. 16.
Upside potential and enhanced yield
The Evolve US Banks Enhanced Yield ETF "seeks to provide investors with both upside potential and enhanced yield in a low rate environment," said Kirk Cooper, Chief Investment Officer at Evolve Funds. "We believe the fundamentals for large US banks are positive; they generally have excess capital, dividend payments have been increasing, and we believe they could benefit from any tax and regulatory changes in the U.S. In our view, active management of covered calls strikes a balance between generating yield and participating in any potential upside performance of the sector."
The Evolve Active US Core Equity ETF seeks to provide holders of units with long-term capital appreciation by investing primarily in equity securities of U.S. listed large-capitalization companies. Evolve Funds has retained Nuveen Asset Management, LLC to act as sub-advisor for this ETF.
Evolve Funds has retained Nuveen as sub-advisor
Evolve Active Short Duration Bond ETF seeks to provide holders of units with a high level of current income through monthly distributions, says the company. The portfolio will generally have an average duration of less than three years. Evolve Funds has retained Nuveen to act as sub-advisor for TIME.
"Active ETFs have been one of the fastest growing segments of the Canadian ETF industry," said Raj Lala, President & CEO at Evolve Funds. "This segment currently makes up approximately 15 per cent of ETF AUM, but is trending upwards. In fact, this year there have been more sales in Active ETFs than all of 2016."