January 16, 2024
CI Global Asset Management Launches ETFs Targeting U.S. Momentum and Value Stocks
CI U.S. Enhanced Momentum Index ETF and CI U.S. Enhanced Value Index ETF begin trading today
TORONTO (January 16, 2024) – CI Global Asset Management (“CI GAM”) announces the launch of two U.S. equity ETFs. CI U.S. Enhanced Momentum Index ETF and CI U.S. Enhanced Value Index ETF have closed their initial offering of exchange-traded units and begin trading today on the Toronto Stock Exchange (“TSX”) under the following tickers:
| ETF | Ticker |
|---|---|
| CI U.S. Enhanced Momentum Index ETF (Hedged Common Units) | CMOM |
| CI U.S. Enhanced Momentum Index ETF (Unhedged Common Units) | CMOM.B |
| CI U.S. Enhanced Value Index ETF (Hedged Common Units) | CVLU |
| CI U.S. Enhanced Value Index ETF (Unhedged Common Units) | CVLU.B |
“Momentum and value are two popular and proven investment styles. These ETFs provide targeted factor-based exposure to U.S. stocks with strong momentum or value characteristics, allowing investors to enhance the style diversification within their portfolios,” said Jennifer Sinopoli, Executive Vice-President and Head of Distribution for CI GAM.
“Our ETFs are distinguished by a low management fee of 0.30% and a fresh and thoughtful approach to the construction of the underlying indexes. These indexes are designed to achieve better risk-adjusted long-term returns compared to other momentum and value-based methodologies.”
CMOM and CVLU target the momentum and value factors using indexes newly developed by VettaFi, LLC.
“These ETFs add to our extensive lineup of ETFs using factor-based or smart beta strategies, which offer the potential for outperformance by focusing on specific drivers of returns,” Ms. Sinopoli said. “These launches build on a successful 2023, in which CI GAM’s ETF assets exceeded the $20-billion milestone. We have a number of other exciting initiatives planned for this year to continue the modernization of our ETF and mutual fund lineup, which is already one of the industry’s most diverse and comprehensive.”
CI GAM is Canada’s fifth-largest ETF provider, with approximately $21 billion in ETF assets under management (as at December 31, 2023). CI GAM’s ETF lineup consists of 88 ETFs and includes beta, smart beta, asset allocation, managed volatility, actively managed, liquid alternatives, digital assets, covered calls, cash management, ESG, and other thematic mandates.
CI U.S. Enhanced Momentum Index ETF seeks to track, to the extent reasonably possible, the performance of a portfolio of U.S. equity securities on the basis of risk-adjusted time-weighted price performance during the specified measurement periods that exhibit higher-quality characteristics, net of expenses. Currently, the Hedged Common Units of CMOM seek to track the VettaFi US Enhanced Momentum Index (CAD Hedged) or any successor thereto; and the Unhedged Common Units seek to track the VettaFi US Enhanced Momentum Index or any successor thereto.
The VettaFi US Enhanced Momentum Index uses a rules-based methodology that systematically screens for primarily large-cap U.S. stocks exhibiting price and earnings momentum as well as quality metrics. The addition of quality criteria is designed to reduce the volatility typically associated with the momentum investment style. The ETF will be rebalanced quarterly and has a risk rating of medium.
CI U.S. Enhanced Value Index ETF seeks to track, to the extent reasonably possible, the performance of a portfolio of large and mid-cap U.S. equity securities that exhibit high value characteristics, net of expenses. Currently, the Hedged Common Units of CVLU seek to track the VettaFi US Enhanced Value Index (CAD Hedged) or any successor thereto; and the Unhedged Common Units seek to track the VettaFi US Enhanced Value Index or any successor thereto.
The VettaFi US Enhanced Value Index uses a rules-based methodology that systematically screens for large and mid-cap U.S. stocks that exhibit strong relative value metrics based on current and forward-looking ratios, including price-to-book, price-to-earnings, price-to-sales, dividend yield and free cash flow yield (forward-looking only). The ETF will be rebalanced semi-annually and has a risk rating of medium.
About CI Global Asset Management
CI Global Asset Management (“CI GAM”) is one of Canada’s largest investment management companies. It offers a wide range of investment products and services and is on the Web at www.ci.com. CI GAM is a subsidiary of CI Financial Corp. (TSX: CIX), an integrated global asset and wealth management company with approximately $438.0 billion in assets as at November 30, 2023.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund and exchange-traded fund (ETF) investments. Please read the prospectus before investing. Mutual funds and ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them. Returns of an Index do not represent the ETF’s returns. An investor cannot invest directly in an Index. Performance of the ETF is expected to be lower than the performance of an Index.
This communication is intended for informational purposes only and does not constitute an offer to sell or the solicitation of an offer to purchase mutual funds managed by CI Global Asset Management and is not, and should not be construed as, investment, tax, legal or accounting advice, and should not be relied upon in that regard. Every effort has been made to ensure that the material contained in this document is accurate at the time of publication. Individuals should seek the advice of professionals, as appropriate, regarding any particular investment. Investors should consult their professional advisors prior to implementing any changes to their investment strategies. These investments may not be suitable to the circumstances of an investor.
Alerian, VettaFi and the indexes are service marks of VettaFi LLC (“VettaFi”) and have been licensed for use by CI Global Asset Management. The indexes are not issued, sponsored, endorsed, sold or promoted by VettaFi or its affiliates. VettaFi makes no representation or warranty, express or implied, to the purchasers or owners of the indexes or any member of the public regarding the advisability of investing in securities generally or in the indexes particularly or the ability of the indexes to track general market performance. VettaFi’s only relationship to the Indexes is the licensing of the service marks and the indexes, which is determined, composed and calculated by VettaFi without regard to CI Global Asset Management or the indexes. VettaFi is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the indexes issued by CI Global Asset Management. VettaFi has no obligation or liability in connection with the issuance, administration, marketing or trading of the indexes.
The CI Exchange-Traded Funds are managed by CI Global Asset Management, a wholly owned subsidiary of CI Financial Corp. (TSX: CIX). CI Global Asset Management is a registered business name of CI Investments Inc.
Contact
Murray Oxby
Vice-President, Corporate Communications
416-681-3254
moxby@ci.com
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