New ETFs for the Canadian market

Article Excerpt

First, we look at a three-year-old fund that focuses on companies with substantial insider ownership. Then, we review two funds recently launched by ETF promoters. They aim to capitalize on blockchain technologies—currently a hot investment trend. That alone prompts us to recommend investors stay clear. HORIZONS CANADIAN INSIDER INDEX ETF $12 (Toronto symbol HII; Market cap: $8.3 million) tracks the performance of the INK Canadian Insider Index. INK provides exposure to 50 TSX-listed stocks with significant insider buying and ownership. The fund launched in January 2015, but has so far attracted only $8.4 million in investment. The MER is 0.65%. The ETF rebalances every six months to restore the equal weighted portfolio. The current top holdings include Calfrac Well Services (2.5%), Labrador Iron Ore Royalty Corp. (2.5%), Hudbay Minerals (2.2%), Goeasy (2.2%), Avigilon (2.2%), and Canadian Western Bank (2.2%). Insider buying and ownership is a useful indicator, but just one of many factors to look at when evaluating an ETF (see box this…