RBC iShares, the joint venture between BlackRock Canada and RBC Global, has introduced a suite of thematic equity ETFs focused on long-term megatrends.
RBC iShares has introduced four thematic megatrend ETFs on Toronto Stock Exchange.
The RBC iShares Megatrend ETFs target transformational forces that are influencing society and the global economy but have not yet reached their full potential.
Listed on Toronto Stock Exchange, the first four ETFs in the suite target exponential technologies, clean energy, genomics & bioengineering, and cybersecurity.
Steven Leong, Head of iShares Product at BlackRock Canada, said: “These new ETFs give investors additional tools to diversify their portfolios, enabling easy access to megatrends which we believe are powerful, transformative forces that can change the trajectory of the global economy by shifting the priorities of societies, driving innovation, and redefining business models.”
Mark Neill, Head of ETFs at RBC Global Asset Management, added: “Since the launch of RBC iShares three years ago, we have been committed to providing Canadian investors and advisors with an unparalleled suite of ETFs to help them meet their evolving needs. The addition of megatrend ETFs is another milestone that reflects this commitment and further demonstrates the strength of the RBC iShares strategic alliance.”
The iShares Exponential Technologies Index ETF (XEXP CN) tracks the Morningstar Exponential Technologies Index which includes 200 equally weighted companies with significant exposure to any of the following disruptive technology sub-themes: big data & analytics, cloud computing, energy transition, fintech innovation, healthcare innovation, hyperconnectivity, nanotechnology, next-generation transportation, and robotics.
The iShares Global Clean Energy Index ETF (XCLN CN) tracks the S&P Global Clean Energy Index which targets 100 companies with significant exposure to clean energy-related businesses. Constituents are weighted using a combination of their float-adjusted market capitalization and their thematic exposure scores.
The iShares Genomics Immunology and Healthcare Index ETF (XDNA CN) tracks the NYSE FactSet Global Genomics and Immuno Biopharma Index which selects the 50 companies with the highest thematic exposure scores to the themes of genomics and immunology, weighting them by float-adjusted market capitalization subject to an individual cap of 4%.
The iShares Cybersecurity and Tech Index ETF (XHAK CN) tracks the NYSE FactSet Global Cyber Security Index which screens for all companies deriving at least 50% of their revenue from FactSet industries related to the cybersecurity theme. Constituents are also weighted by float-adjusted market capitalization subject to individual caps of 4%.
Each ETF comes with an expense ratio of 0.39%, except for the clean energy fund which costs 0.35%.