Toronto-based Mackenzie Financial Corp. announced that it's reclassifying the risk profile of Mackenzie Maximum Diversification US Index ETF risk profile to "Medium" from "Low to Medium."
The ETF's aim is to duplicate the performance of the TOBAM Maximum Diversification USA Index. As such, it mainly invests in U.S. equity securities.
The change is a result of compliance and comes on the heels of the Canadian Securities Administrators' risk classification methodology, which was updated in December of 2016.
The ETF's risk rating had previously been determined by a standard deviation-based calculation approved by the Canadian ETF association.
The new risk rating has no impact on the investment objectives of the Mackenzie Maximum Diversification US Index ETF.