iShares Equal Weight Banc & Lifeco ETF (CEW:CA)
The investment objective of the ETF is to provide investors with a diversified, equal-weighted investment in a portfolio of common shares of the largest Canadian banks and Canadian life insurance companies. The Fund seeks to provide investors with monthly cash distributions targeted to be $0.04167 per unit (approximately $0.50 per annum). Currently, the Fund pays monthly cash distributions of $0.023 per Common Unit ($0.276 per annum) and $0.0325 per Advisor Class Unit ($0.39 per annum).
The investment strategy of the ETF is to invest in common shares of the largest Canadian banks and Canadian life insurance companies. Securities are selected for inclusion in the CEW portfolio based on the following criteria: (i) the minimum market capitalization of such an issuer is $5 billion for banks and $1.5 billion for life insurance companies; and (ii) the issuer must be a Canadian bank or a Canadian life insurance company.
IFM Investment Tip:
This ETF splits it's investments between bank (58.22%) and insurance (37.55%) company shares. It is managed like an active Mutual Fund. The ETF does not track a specific index and investment decisions appear to be subjective with managers making rebalancing decisions every six months and adjustments are constantly made for changes in the market values of the investments. So this ETF is more like a very low cost, low activity Mutual Fund than it is a passive index ETF.
A couple of things that we like about this ETF
- the Common Unit distributions do not include a Return of Capital (ROC) and
- it has a relatively low Portfolio Turnover Ratio (PTR).
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- No specific Index -Rather the ETF invests in a basket of bank & lifeco shares.
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Date Established
- January 31, 2008
- Annual Management Fee
- 0.55% Plus 0.05% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.01% (2016)
- Management Expense Ratio (MER)
- 0.61% (2016)
- Additional Performance Fee(s)
- 0.75% - Additional fee applicable to Advisor Class Shares. (MER = 1.44% for Advisor Class shares in 2016)
- Yes - In 2016, the ETF had a yield equal to 5.55% net of Return of Capital (ROC) payments.
- Distribution Dates
- Monthly - toward the end of each month.
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes Visit ETF Website for details
- Rebalancing Frequency
- Semi-Annual plus ongoing changes for mergers and acquisitions.
- Portfolio Turnover Ratio
- Was 31.49% in 2016, 21.22% in 2015, 18.59% in 2014, 9.76% in 2013, 9.84% in 2012, 16.41% in 2011 & 8.43% in 2010
- Simplified Prospectus
- Last Updated