iShares Canadian Financial Monthly Income ETF (FIE:CA)
The investment objective of the ETF is to maximize total return for investors, consisting of distributions and capital appreciation and to provide investors with a stable stream of monthly cash distributions of $0.05 per unit ($0.60 per annum). Currently, the Fund pays monthly cash distributions of $0.04 per Advisor Class Unit ($0.48 per annum) and $0.04 per Common Unit ($0.48 per annum).
The investment strategy of the Fund is to invest it’s net assets, together with borrowings under its loan facility, in a portfolio consisting primarily of common shares, preferred shares, corporate bonds and income trust units of issuers in the Canadian financial sector.
IFM Investment Tip:
This ETF is actively managed according to set guidelines and does not replicate an index. The ETF is heavily weighted toward Financial common shares (75.5%) and 22% invested in iShares S&P/TSX Canadian Preferred ETF..
In addition, the costs associated with this ETF are at the high end of the ETF scale - more like a mutual fund.
Important Note: This ETF has a set monthly distribution rate of $0.04 per share which is not indicative of the actual income earned by this ETF. If the earnings fall short of the $0.04/share distribution, the investor's own capital may be used for the monthly payment. Therefore, the stated high yield is not comparable to other ETFs - in 2016, 50% or $0.02/month was a Return of Capital.
- Fact Sheet
- TMX Money ETF Screener
- Morningstar ETF Screener
- Underlying Index/Commodity
- None - This ETF is actively managed.
- Asset Category
- Growth Investments
- Average Duration
- Average Maturity
- Date Established
- April 14, 2010
- Annual Management Fee
- 0.65% Plus 0.29% in Operating Expenses (2016)
- Trading Expense Ratio (TER)
- 0.02% (2016)
- Management Expense Ratio (MER)
- 0.96% (2016)
- Additional Performance Fee(s)
- 0.75% - Additional fee applicable to Advisor Class Shares. (1.80% for Advisor Class shares in 2016)
- Yes - In 2016, the ETF had a yield equal to 3.71% net of Return of Capital (ROC) payments.
- Distribution Dates
- Monthly - at the beginning of each month.
- Distribution Details
- Dividend Reinvestment Plan (DRIP)
- Yes - Visit ETF Website for details
- Rebalancing Frequency
- Ongoing rebalancing.
- Portfolio Turnover Ratio
- Was 32.80% in 2016, 48.95% in 2015, 29.99% in 2014, 30.79% in 2013, 26.90% in 2012, 24.10% in 2011 and 22.47% in 2010.
- Simplified Prospectus
- Last Updated