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etfs

Kimberly Yip Woon Sun is ETF analyst at Inovestor Inc.

A new ETF issuer joined the industry during May with a suite of alternative ETFs.

Accelerate Financial Technologies’ mission is to “democratize alternative investments by offering institutional-caliber hedge fund and private equity strategies in low-cost, liquid and easy to use ETFs accessible by any investor.” Instead of charging a management fee, each ETF has a performance fee over their high-water mark or its respective benchmark.

The Accelerate Private Equity Alpha Fund (ticker: ALFA) invests primarily in listed equity securities that are expected to outperform the US equity market, while entering into short positions in respect of US-listed equity securities. ALFA uses derivatives to gain exposure to its short portfolio and borrows cash to increase its long equities portfolio.

The Accelerate Enhanced Canadian Benchmark Alternative Fund (ATSX) seeks to achieve a superior risk-adjusted return relative to the broader Canadian equity market and uses a long-short overlay portfolio to add positive absolute return.

The Accelerate Absolute Return Hedge Fund (HDGE) seeks to achieve a superior risk-adjusted return relative to the broader Canadian equity market. HDGE seeks to outperform the Canadian equity market over the long term with lower volatility by investing primarily in listed equity securities that are expected to outperform this market, while selling short certain listed equity securities expected to underperform this market.

Horizons ETFs introduced a two-times leverage cannabis ETF, the BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU), and an inverse cannabis ETF, the BetaPro Marijuana Companies Inverse ETF (HMJI). HMJU provides two times multiple of the daily performance of the North American MOC Marijuana Index (NTR) while HMJI provides the inverse (opposite) of the daily performance of the North American MOC Marijuana Index (TR).

May ETF Launches and Terminations

NAMETICKERASSET CLASSMGT. FEE
LAUNCHES
Accelerate Private Equity Alpha FundALFA-TAlternative0.00% *
Accelerate Enhanced Canadian Benchmark Alternative FundATSX-TAlternative0.00% **
Accelerate Absolute Return Hedge FundHDGE-TAlternative0.00% ***
TD Active Global Enhanced Dividend ETFTGED-TEquity0.65%
TD Systematic International Equity Low Volatility ETFTILV-TEquity0.35%
TD Global Technology Leaders Index ETFTEC-TEquity0.35%
BetaPro Marijuana Companies 2x Daily Bull ETFHMJU-TAlternative1.45%
BetaPro Marijuana Companies Inverse ETFHMJI-TAlternative1.45%
Horizons Global Uranium Index ETFHURA-TEquity0.75%
Fidelity Sustainable World ETFFCSW-TEquity0.55%
Evolve Cyber Security Index Fund - USD Unhedged UnitsCYBR.U-TEquity0.40%
TERMINATIONS
Harvest Banks & Buildings Income ETF ****HCBB-TEquity0.85%

Source: Inovestor

* Performance Fee of 15% of outperformance over high-water mark
** Performance Fee of 50% of outperformance over high-water mark or S&P/TSX 60 Index
*** Performance Fee of 20% of outperformance over high-water mark
**** Termination date is July 31, 2019. Assets under management: $2.5-million.

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