First Asset Enhanced Short Duration Bond ETF has closed the initial offering of U.S. dollar-denominated units, which began trading Wednesday on the Toronto Stock Exchange (TSX) under the ticker symbol FSB.U, Toronto-based First Asset Investment Management Inc. announced.

The ETF also offers Canadian dollar units, which were launched on Sept. 12, and trade on the TSX under the ticker symbol FSB.

The ETF's investment objective is to provide absolute returns through interest income and capital gains and its risk objective is to have very low volatility and positive returns over any 12-month period, according to the company's announcement.

The ETF's strategy will primarily focus on U.S. and Canadian corporate bonds and will include the use of government bond futures to manage the duration of the fund according to the volatility objectives.

FSB will be co-managed by Barry Allen, president and chief investment officer and Paul Sandhu, vice president and portfolio manager of Toronto-based Marret Asset Management Inc.

The ETF is managed by First Asset, a subsidiary of First Asset Capital Corp.