Sphere Investments is the latest ETF provider to list its products on Toronto Stock Exchange (TSX). The four Sphere FTSE Sustainable Yield ETFs will track the FTSE Sustainable Yield 150 Capped 10% Indexes.
We asked Sphere to outline the thinking and strategy behind these new products.
The Sphere FTSE Sustainable Yield suite was designed to correct a significant pitfall of many dividend funds: exposure to high-yielding equities that cut their dividends. Exposure to these dividend cutters can be very detrimental to the fund performance. The objective of the Sphere FTSE Sustainable Yield suite is to provide investors with a portfolio of equities that pay reasonably high and sustainable yields.
We believe that yield investing can be an important way to generate equity returns while also participating in yielding securities. It should also be noted that Canadian investors have benefitted from a strong bias toward dividend strategies, but have been significantly disadvantaged by an even stronger bias toward Canadian dividend funds. Although Canada represents less than 4% of the world’s market capitalization, Canadian fund investors have well over 50% of their investments in Canadian products. We believe that Canadians should consider gaining more dividend-oriented exposure through funds with global exposure and a strong methodology.
Sphere has global aspirations in its fund management methodologies and in ETF distribution. These aspirations made listing on TSX an easy decision. TSX has a globally known brand name and has been extremely supportive as Sphere developed its initial product suite. In short, TSX has been an exemplary partner.
As of March 31, 2016, there were 395 ETFs listed on TSX with a total market capitalization of $104 billion.
For more information on ETFs and other exchange traded products, visit the ETF Centre on TMXmoney: http://app.tmxmoney.com/etp/.
For more information about Sphere Investments, visit www.sphereetfs.com.
This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this article and we are not responsible for any errors or omissions in or your use of, or reliance on, the information.
This article is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied on for such advice.
The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this article.
The views, opinions and advice provided in this article reflect those of a third party and are not endorsed by TMX Group or its affiliated companies.
© 2016 TSX Inc. All rights reserved. Do not sell or modify this document without TSX Inc.’s prior written consent.
TMX, the TMX design, TMX Group, Toronto Stock Exchange, TSX, TSX Venture Exchange and TSXV are the trademarks of TSX Inc.
All content (including any links to third party sites) is provided for informational purposes only (and not for trading purposes), and is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. Please seek professional advice to evaluate specific securities or other content on this site. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange. TMX Group and its affiliated companies do not endorse or recommend any securities referenced here. © TSX Inc., a wholly owned subsidiary of TMX Group Limited. All rights reserved. Do not sell or modify this document without TSX Inc.'s prior written consent.
***"S&P" is the trade-mark of Standard & Poor's Financial Services LLC, and "TSX" is the trade-mark of TSX Inc.