New ETFs for Canadian investors

Article Excerpt

This month we look at an ETF from Brompton that selects companies with a high free cash flow yield. A second highlighted ETF comes from RBC iShares. It invests in the companies held in the S&P 500 Index, but reduces stock concentration by capping individual stock weights at 3%. Brompton International Cash Flow Kings ETF $9.82 (Toronto symbol KNGX) invests in listed companies outside North America with high free cash flow (regular cash flow less maintenance capital expenditures) per share. Brompton previously launched similar ETFs focusing on U.S. companies (Toronto symbol KNGU) and Canadian companies (Toronto symbol KNGC). The ETF tracks the Brompton International Cash Flow Kings Index. The fund launched on July 16, 2024, and holds $6 million in assets. The management fee is 0.55%. The largest holdings are allocated to Japan (29%), followed by the U.K. (23%), Australia (9%), Norway (7%), and Spain (6%). Segment allocations are led by Industrials (31%), followed by Energy (29%), and Consumer Staples (12%). The ETF holds 50 stocks with…