News Feed Item

IShares Adds Low-Cost Access to Short Duration, High Quality Bonds to the Core Series for Canadian Investors with XSQ

The iShares Core Series for Canadian Investors Leads in Market Flows Since Launch


iShares, the industry-leading exchange-traded fund (ETF) business at BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect, wholly-owned subsidiary of BlackRock, Inc. (BlackRock), announced the addition of the iShares Core Short Term High Quality Canadian Bond Index ETF (XSQ) to its Core Series. On the heels of the successful launch of the iShares Core Series for Canadian investors earlier this year, this new fund will deepen the fixed income opportunities within the Core Series by offering investors low-cost exposure to high quality, liquid, short duration Canadian bonds (1-5 years), with a credit rating of A or higher. XSQ has an annual management fee of 0.12%. XSQ has now closed the initial offering of its units which will be available for trading on the TSX when the market opens today.

"In an environment where rising rates are on the horizon, investors are reconsidering how best to access bonds," said Noel Archard, Managing Director, Head of BlackRock Canada. "With the addition of XSQ to our iShares Core Series, Canadian investors will have low-cost access to high quality short duration bonds that are well-suited for the long term as well as for managing against this potential risk."

High Quality Bond Exposure for the Core of the Portfolio

Similar to the iShares Core High Quality Canadian Bond Index ETF (XQB),(1) which is also part of the iShares Core Series, XSQ will provide diversified bond exposure with a weighting of 60 per cent government bonds and 40 per cent corporate bonds. While XQB covers the universe, XSQ will capture the short end of the Canadian bond universe by seeking to replicate, to the extent possible, the performance of the FTSE TMX Canada Liquid Short Term Capped Bond Index. Both XSQ and XQB provide investors with exposure to higher credit quality bonds without a large sacrifice in yield relative to comparable market cap weighted portfolios that include lower rated securities across their respective duration profiles.

iShares Core Series Leads Industry Flows

As the ETF market leader, with a 15-year history in ETFs in Canada and over $44.4 billion in assets under management, BlackRock Canada is launching XSQ on the heels of its successful iShares Core Series initiative that was launched in March. The iShares Core Series, a suite of nine, now 10, low-cost funds that cover the key assets classes used by Canadian investors in their portfolios today, has effectively captured 46% flows across the respective asset classes since launch(2).

"At BlackRock we continue to look for ways to build upon the success of our iShares Core Series designed with Canadian investors in mind and deliver products that speak to the evolving needs of investors," said Archard. "The addition of diversified, short duration bond exposure to the iShares Core Series with XSQ is one step further in that direction."

Designed to Make Investing Simpler, Easier and More Efficient

BlackRock Canada is committed to making it easier for investors to reach their goals. As the ETF universe continues to evolve and become more complex, the iShares Core Series for Canadian investors was designed to make it easier for the long-term investor to identify the investments suitable for the core of their portfolio. To further strengthen this effort, effective July 16, 2014, the funds in the Core Series have been renamed to include "Core" directly in the fund name, as set out below.

Ticker                     Former Fund Name                    New Fund Name
           iShares S&P/TSX Capped Composite      iShares Core S&P/TSX Capped
XIC                               Index ETF              Composite Index ETF
              iShares S&P/TSX Equity Income   iShares Core S&P/TSX Composite
XEI                               Index ETF          High Dividend Index ETF
              iShares High Quality Canadian        iShares Core High Quality
XQB                          Bond Index ETF          Canadian Bond Index ETF
                iShares Canadian Short Term iShares Core Canadian Short Term
XSH        Corporate + Maple Bond Index ETF Corporate + Maple Bond Index ETF
            iShares Canadian Long Term Bond  iShares Core Canadian Long Term
XLB                               Index ETF                   Bond Index ETF
XUS               iShares S&P 500 Index ETF   iShares Core S&P 500 Index ETF
            iShares S&P 500 Index ETF (CAD-   iShares Core S&P 500 Index ETF
XSP                                 Hedged)                    (CAD- Hedged)
                                            iShares Core MSCI EAFE IMI Index
XEF         iShares MSCI EAFE IMI Index ETF                              ETF
          iShares MSCI Emerging Markets IMI       iShares Core MSCI Emerging
XEC                               Index ETF            Markets IMI Index ETF

Effective July 21, 2014, the TSX ticker symbols for the Common Units and the Advisor Class Units of the iShares Core High Quality Canadian Bond Index ETF have also changed as set forth below.

Class of Units        Former TSX Ticker Symbol         New TSX Ticker Symbol
Common Units                               CAB                           XQB
Advisor Class                                                               
 Units                                   CAB.A                         XQB.A

Further information on the iShares funds can be found at iShares.ca.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At June 30, 2014, BlackRock's AUM was US$4.594 trillion. BlackRock helps clients meet their goals and overcome challenges with a range of products that include separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of June 30, 2014, the firm had approximately 11,600 employees in more than 30 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.

About iShares ETFs

The iShares business is a global product leader in exchange traded funds with over 600 funds globally across equities, fixed income and commodities, which trade on 20 exchanges worldwide. The iShares funds are bought and sold like common stocks on securities exchanges. The iShares funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost, tax efficiency and trading flexibility. Investors can purchase and sell securities through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and individual investors.

iShares Funds are managed by BlackRock Asset Management Canada Limited. Commissions, trailing commissions, management fees and expenses all may be associated with investing in iShares Funds. Please read the relevant prospectus before investing. The funds are not guaranteed, their values change frequently and past performance may not be repeated. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional.

© 2014 BlackRock Asset Management Canada Limited. All rights reserved. iSHARES® and BLACKROCK® are registered trademarks of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. Used with permission.

(1) Formerly iShares High Quality Canadian Bond Index ETF (CAB). See below for further details.

(2) Source: Internal research, BlackRock Canada, as of June 30, 2014.

Maeve Hannigan
Cell: 416-564-1540
[email protected]

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Cloud-enabled transformation has evolved from cost saving measure to business innovation strategy -- one that combines the cloud with cognitive capabilities to drive market disruption. Learn how you can achieve the insight and agility you need to gain a competitive advantage. Industry-acclaimed CTO and cloud expert, Shankar Kalyana presents. Only the most exceptional IBMers are appointed with the rare distinction of IBM Fellow, the highest technical honor in the company. Shankar has also receive...
DXWorldEXPO LLC announced today that Kevin Jackson joined the faculty of CloudEXPO's "10-Year Anniversary Event" which will take place on November 11-13, 2018 in New York City. Kevin L. Jackson is a globally recognized cloud computing expert and Founder/Author of the award winning "Cloud Musings" blog. Mr. Jackson has also been recognized as a "Top 100 Cybersecurity Influencer and Brand" by Onalytica (2015), a Huffington Post "Top 100 Cloud Computing Experts on Twitter" (2013) and a "Top 50 C...
Daniel Jones is CTO of EngineerBetter, helping enterprises deliver value faster. Previously he was an IT consultant, indie video games developer, head of web development in the finance sector, and an award-winning martial artist. Continuous Delivery makes it possible to exploit findings of cognitive psychology and neuroscience to increase the productivity and happiness of our teams.
There is a huge demand for responsive, real-time mobile and web experiences, but current architectural patterns do not easily accommodate applications that respond to events in real time. Common solutions using message queues or HTTP long-polling quickly lead to resiliency, scalability and development velocity challenges. In his session at 21st Cloud Expo, Ryland Degnan, a Senior Software Engineer on the Netflix Edge Platform team, will discuss how by leveraging a reactive stream-based protocol,...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities - ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups.
The standardization of container runtimes and images has sparked the creation of an almost overwhelming number of new open source projects that build on and otherwise work with these specifications. Of course, there's Kubernetes, which orchestrates and manages collections of containers. It was one of the first and best-known examples of projects that make containers truly useful for production use. However, more recently, the container ecosystem has truly exploded. A service mesh like Istio addr...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
Predicting the future has never been more challenging - not because of the lack of data but because of the flood of ungoverned and risk laden information. Microsoft states that 2.5 exabytes of data are created every day. Expectations and reliance on data are being pushed to the limits, as demands around hybrid options continue to grow.
Business professionals no longer wonder if they'll migrate to the cloud; it's now a matter of when. The cloud environment has proved to be a major force in transitioning to an agile business model that enables quick decisions and fast implementation that solidify customer relationships. And when the cloud is combined with the power of cognitive computing, it drives innovation and transformation that achieves astounding competitive advantage.
Poor data quality and analytics drive down business value. In fact, Gartner estimated that the average financial impact of poor data quality on organizations is $9.7 million per year. But bad data is much more than a cost center. By eroding trust in information, analytics and the business decisions based on these, it is a serious impediment to digital transformation.
Digital Transformation: Preparing Cloud & IoT Security for the Age of Artificial Intelligence. As automation and artificial intelligence (AI) power solution development and delivery, many businesses need to build backend cloud capabilities. Well-poised organizations, marketing smart devices with AI and BlockChain capabilities prepare to refine compliance and regulatory capabilities in 2018. Volumes of health, financial, technical and privacy data, along with tightening compliance requirements by...
Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settlement products to hedge funds and investment banks. After, he co-founded a revenue cycle management company where he learned about Bitcoin and eventually Ethereal. Andrew's role at ConsenSys Enterprise is a mul...
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
"Since we launched LinuxONE we learned a lot from our customers. More than anything what they responded to were some very unique security capabilities that we have," explained Mark Figley, Director of LinuxONE Offerings at IBM, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
I love the beginning of the year. It is always enjoyable to see people's predictions for trends in the coming year. Publications like Fortune, CNN Money, Washington Post and the Atlantic speculate about what gadgets and technologies are going to take off in popularity this year, psychics predict which celebrities will have babies and fall in love, and I start to think about trends like DevOps and where the software delivery industry is headed next.CollabNet, Eric Robertson, predicted.