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The Canadian ETF industry welcomes another issuer, 1832 Asset Management L.P., an indirectly wholly-owned subsidiary of The Bank of Nova Scotia. Its first suite consists of four ETF portfolios holding other ETFs in the U.S. equity, Canadian equity, international equity and fixed-income spaces. The management fee on Scotiabank’s ETFs range from 0.45 to 0.60 per cent.
Invesco launched Canada’s first equal-weight U.S. large-cap ETF. The Invesco S&P 500 Equal Weight Index ETF (EQL-T) provides equal-weight exposure to the companies that make up the S&P 500 Index by allocating 0.2 per cent weight to each company at its quarterly rebalancing. This equal-weight component reduces concentration risk of the S&P 500. To illustrate, the S&P 500 Index (float-adjusted market cap weighted) has an exposure of 26 per cent to the information technology sector, compared with 13.6 per cent for the S&P 500 Equal Weight Index. The ETF is also offered in hedged and U.S. dollar units, and has a management fee of 0.25 per cent of NAV.
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