BlackRock Asset Management has launched six new iShares exchange traded funds (ETFs), including income portfolios and global sector mandates.
“Investor appetite for sector-specific exposure remains strong as many seek to diversify portfolios by industry,” said Mary Anne Wiley, managing director, head of iShares distribution at BlackRock Canada. “These new funds will offer investors even greater opportunity to target their portfolios by sector both within and beyond our market.”
The iShares S&P Global Healthcare Index Fund (CAD-Hedged) seeks to replicate the performance of the S&P Global 1200 Health Care Canadian Dollar Hedged Index, net of expenses. Canadian investors tend to have underweight positions in the healthcare sector due to the relatively small domestic sector. The new ETF is expected to provide a semi-annual distribution.
The iShares S&P/TSX Global Base Metals Index Fund tracks the performance of the index it is named for, net of expenses. BlackRock expects a quarterly income distribution from this ETF.
The iShares S&P/TSX Capped Utilities Index Fund will track the Canadian utilities sector, and expected to pay a monthly distribution.
The iShares S&P/TSX Capped Consumer Staples Index Fund seeks replicate the performance of the S&P/TSX Capped Consumer Staples Index and is the first ETF in Canada to offer exposure to the consumer staples sector. It is expected to pay a quarterly distribution.
The iShares S&P/TSX Equity Income Index Fund will track the S&P/TSX Equity Income Index, net of expenses, and is expected to pay a monthly distribution.
And finally the iShares J.P. Morgan USD Emerging Markets Bond Index Fund (CAD-Hedged) will seek to replicate the index it is named after, net of expenses. Its expected income distribution frequency is monthly.
“As our economy moves into an early growth phase, sectors like consumer discretionary, materials and energy tend to outperform other sectors,” said Wiley. “Therefore, investors may want to consider the iShares S&P/TSX Global Base Metals Index Fund (XBM) for their portfolio as the material sector tends to outperform as large infrastructure projects get underway.”