Toronto-based Evolve Funds Group Inc. has launched Evolve Automobile Innovation Index ETF and Evolve Active Canadian Preferred Share ETF on Friday.
Both ETFs have closed their initial offering of hedged and unhedged units and have begun trading on the Toronto Stock Exchange.
"We believe there's a place for active and passive ETFs in client portfolios," says Raj Lala, president and CEO of Evolve Funds, in a statement. "Evolve Automobile Innovation Index ETF has been designed to give Canadian investors access to an exciting passive investment opportunity provided by the transformation of the automobile and Evolve Active Canadian Preferred Share ETF will give investors access to an actively managed portfolio of preferred shares subadvised by Foyston, Gordon and Payne Inc. (FGP)."
Evolve Automobile Innovation Index ETF aims to replicate the performance of the Solactive future cars index Canadian dollar hedged. The ETF will invest mainly in equities of companies that are directly or indirectly engaged in creating electric drivetrains, autonomous driving or network connected services for automobiles.
"Over the next five to 10 years, we will most likely experience the largest transformation in the auto industry's history," says Lala. "[This] is Canada's first Automobile Innovation ETF, investing in companies focused on electric, autonomous and connected vehicles, as well as their supply chain counterparts."
Evolve Active Canadian Preferred Share ETF seeks to provide unitholders stable income and long-term capital appreciation by investing chiefly in a diversified mix of preferred shares of mostly Canadian issuers, as well as U.S. and international issuers.
"There are a number of market segments that benefit from active management in order to generate better risk-adjusted returns, and we believe preferred shares are one of these segments," says Lala.
FGP employs a multi-strategy approach, including security selection, sector allocation and interest rate anticipation from the perspective of a long-term, value-oriented approach.
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