First Asset Investment Management Inc. is launching two equity exchange-traded funds (ETFs) replicating Morningstar U.S. equity indexes. This development will allow Canadian investors to access the American market with Morningstar Index-powered ETFs.
The First Asset Morningstar U.S. Momentum Index ETF and First Asset Morningstar U.S. Value Index ETF started trading on the Toronto Stock Exchange on Oct. 22.
These ETFs have been designed to replicate, as much as possible, the performance of the Morningstar U.S. Momentum Target 50 Index and Morningstar U.S. Value Target 50 Index, as applicable, net of expenses.
The goal of the First Asset Morningstar U.S. Momentum Index ETF is to provide diversified exposure to the top 50 U.S.-based equities that demonstrate, among other things, positive momentum in earnings and price. The First Asset Morningstar U.S. Value Index ETF is meant to provide diversified exposure to the top 50 U.S.-based equities that are, among other things, considered to be of good value based on characteristics such as low price-to-earnings and low price-to-cash-flow ratios.
These ETFs will be denominated in Canadian dollars but will be offered in hedged and unhedged versions to give investors the flexibility to choose whether they want exposure to the U.S. currency.
A version of this story originally appeared on our sister publication, Advisor.ca.