Canadian ETF knowledgebase
At time of writing (May 2013) this ETF uses currency hedging although this fact is not mentioned on the fund's Home Page (at First Asset), fact sheet or eluded to by its name (which does not contain 'CAD hedged'). This important detail is only revealed in the fund's 60+ page prospectus.
The First Asset Morningstar US Dividend Target 50 Index ETF has been designed to replicate, to the extent possible, the performance of the Morningstar U.S. Dividend Target 50 Index, net of expenses.
The investment strategy of the First Asset Morningstar US Dividend Target 50 Index ETF is to invest in and hold constituent securities of the Morningstar U.S. Dividend Target 50 Index.
The First Asset Morningstar US Dividend Target 50 Index ETF invests in equity securities of the largest and most liquid U.S. public issuers based on proprietary research generated by Morningstar, and is designed to provide diversified exposure to U.S. dividend paying companies.
The Morningstar US Dividend Target 50 Index reflects the performance of 50 dividend paying U.S. based equities.
The securities are selected from a universe comprised of securities trading on one of the three major exchanges in the U.S. and are classified as U.S. securities by Morningstar.
It is a Fundamental Index, screening stocks using Fundamental factors including:
The Index is comprised of the top 50 issuers that meet the screening requirements, and are equally weighted and rebalanced quarterly.
|Category (main)||USA Equity Income - Fundamental|
|Underlying Index||Morningstar U.S. Dividend Target 50 Index|
|ETF Structure||Passive type. Aims to track Fundamental index|
|Sub-Asset Class||Equity Income|
|ETF Home Page||Available here|
|Inception Date||Feb 6, 2012|
|Significant Currency Exposure||Yes|
|Currency Hedging||Yes *|
* At least 90% of portfolio will be hedged at all times
|Management Expense Ratio (MER)||Unknown *|
* Not available yet
|Exchange||TSX (Toronto Stock Exchange)|
|Eligibility *||RRSP, RRIF, RESP, TFSA, DPSP, RDSP|
|DRIP available **||Yes|
|PACC Plan available **||Yes|
|SWP available **||Yes|
* Always check eligibility with your plan operator as plans and accounts can differ
** Not all brokers can facilitate these plans. Check with your broker.
To view the TSX or Morningstar fund page for this ETF click on the Fund Data menu tab or below:
Canada ETFs's analysis of this ETF will be available soon.