Two new ETFs for Canadian investors

Article Excerpt

This month we highlight two new Canadian-listed ETFs that focus on small and mid-sized U.S. companies. The first is managed by Global X, while the second is an actively managed fund from RBC. Global X Russell 2000 Index ETF $26.96 (CBOE Canada symbol RSSX) invests in small-cap companies listed on U.S. markets, with the Russell 2000 Capped Index as its benchmark. This ETF launched on November 7, 2024, and has $19.1 million of assets under management. The management fee is 0.25%. The fund invests all its assets in the large U.S.-listed Global X Russell 2000 ETF (New York symbol RSSL). The underlying portfolio currently holds 1,961 stocks; top holdings include Sprouts Farmers, Insmed, Vaxcyte, Southstate Corp., Rocket Lab, Carpenter Technology, and Mueller Industries. Smaller firms can sometimes generate higher returns than their larger counterparts, but they are often riskier, less liquid, and may underperform for long periods. One way to offset some of the risk is to focus on ETFs—like this one—that hold top-quality small-capitalization companies. The Global X..