BlackRock Asset Management Canada Ltd., an indirect, wholly owned subsidiary of BlackRock, Inc. has launched the iShares NASDAQ 100 Index Fund XQQ.
“This new ETF is an ideal complement to our product lineup in Canada and provides investors access to a number of sectors not widely available here,” said Mary Anne Wiley, managing director and head of iShares distribution at BlackRock Canada. “XQQ meets the need for portfolio diversification by allowing investors access to U.S. equities and industries, like healthcare and technology, that can withstand economic cycle transitions.”
The fund will provide exposure to 100 of the largest non-financial securities listed on the NASDAQ based on modified market capitalization. The fund will seek to hedge any resulting U.S. dollar currency exposure back to Canadian dollars. XQQ (CAD-hedged) invests in companies across major industry groups, including the healthcare, information technology and consumer discretionary sectors, with a management fee of 0.35%.
The fund seeks to provide long-term capital growth by replicating, to the extent possible, the performance of the NASDAQ 100 Currency Hedged CAD Index, net of expenses. It provides exposure to sectors that are generally under-represented in Canada and, as a result, can be used to diversify an investor’s equity portfolio.