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Wealthsimple’s first two ETFs provide Canadians with opportunity to access diversified exposure to socially responsible companies at a low cost
TORONTO – June 16, 2020 – Mackenzie Investments today announced the listing of Wealthsimple’s first two exchange traded funds (ETFs), with Mackenzie serving as trustee, manager and portfolio manager.
Wealthsimple North America Socially Responsible Index ETF will seek to replicate the performance of the Solactive Wealthsimple North America Socially Responsible Factor index, with a management fee of 0.20%. It invests primarily in Canadian and US equity securities with the goal of achieving diversified exposure to companies that do not violate commonly held social and environmental values.
Wealthsimple Developed Markets ex North America Socially Responsible Index ETF will track the Solactive Wealthsimple DM ex NA Socially Responsible Factor index, with a management fee of 0.25%. It invests primarily in equity securities of companies in Europe, Australia and Asia with the goal of achieving diversified exposure to companies that do not violate commonly held social and environmental values.
Wealthsimple’s ETFs offer low fees, improved values screening and more sophisticated portfolio construction. They exclude controversial industries like weapons and tobacco, and screen companies for carbon emissions. The decision to develop the company’s very first investment products stemmed from its existing SRI offering, which launched in 2016 and was constructed using third-party ETFs. Wealthsimple saw an opportunity to make improvements not only to its existing managed portfolios, but also to the Canadian socially responsible investment market more broadly.
“Canadians are increasingly interested in investment options that reflect their values, and there haven’t always been a lot of great options for them. This prompted us to create our own socially responsible funds that use clear, transparent values screens and carry lower fees than much of the competition,” says Michael Katchen, co-founder and CEO of Wealthsimple.
The initial offering of the two ETFs has closed and they will begin trading today on the Toronto Stock Exchange. Wealthsimple North America Socially Responsible Index ETF will trade under the ticker symbol WSRI and Wealthsimple Developed Markets ex North America Socially Responsible Index ETF will trade under the ticker simple WSRD.