WisdomTree Asset Management Canada has announced the launch of two smart beta fixed income ETFs: the WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF and the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF.
The non-hedged units of the WisdomTree Yield Enhanced Canada Aggregate Bond Index ETF and the WisdomTree Yield Enhanced Canada Short-Term Aggregate Bond Index ETF started trading on the Toronto Stock Exchange on June 26 under the ticker symbols CAGG and CAGS, respectively.
The Funds diversify a multi-sector portfolio while maintaining a balance between risk and return, shifting exposure across sectors, levels of interest rate risk and credit risk, says the company.
"Despite the prospect of rising interest rates, investors don't have to look outside Canada to benefit from the steady income and lowered volatility expected from the bond market. These new offerings are designed to minimize portfolio exposure to low-yielding securities like treasuries and to enhance yield," said Kurt MacAlpine, executive vice president, head of Global Distribution at WisdomTree. "Both CAGG and CAGS are great options for investors who are seeking to boost their incremental income potential while still mitigating risk."