ETF News

Building an investment product shelf requires diligence, foresight, and patience for any asset management firm. Though CIBC Asset Management (CAM) is part of a larger CIBC banking enterprise, the firm has exhibited these attributes in building its ETF franchise and garnered notable success in a fairly short period of time.

In this ETF Issuer article, we delve into CIBC Asset Management's existing ETF offerings, shedding light on their unique investment process. We also outline the benefits investors can reap from these solutions, underscoring their value proposition.

CIBC Asset Management Background

For over half a century, CIBC Asset Management has been trusted by generations of investors and institutions in Canada and worldwide to manage and grow their portfolios. CAM's offerings include a comprehensive platform of mutual funds, strategic managed portfolio solutions, discretionary investment management services for high-net-worth individuals, and institutional portfolio management. Based on the recently published 2024 Top 40 Money Managers Report, produced by Benefits Canada, CIBC Asset Management is the 11th largest asset manager headquartered in Canada by pension assets. As reported by the firm, total assets under administration as of January 2024, were over $170 billion.

Building an ETF Franchise

Since launching two initial ETFs in January 2019, CAM has gradually expanded its product shelf to reflect various ETF types in subsequent years. Currently, CAM has 27 ETF offerings and is ranked 16th (out of 40) among Canadian ETF providers by asset under management (AUM) as of April 30th, 2024, based on the Canadian ETF Association's monthly report. CAM's reported ETF AUM, as of April 2024, was CAD 3, 407 million, up 27.8% from a year prior.

The categorization of CAM's ETF product shelf slants towards actively managed mandates, as 14 mandates have such a label; there are 10 index-style mandates and 3 quantitative-focused mandates. Detailed below are CAM's ETF solutions and their respective investment objectives.

Active ETFs

Actively managed ETFs combine the flexibility and efficiency of an ETF with the expertise of professional portfolio managers. These ETFs aim to outperform their benchmarks and can provide better risk management for your portfolio.

CIBC Active Investment Grade Floating Rate Bond ETF (Ticker: CAFR)

Seeks to generate a high level of current income while preserving capital. Invests in a portfolio of Canadian debt securities and uses interest-rate derivatives to lessen the effect of interest rate fluctuations.

CIBC Conservative Fixed Income Pool - ETF Series (Ticker: CCNS)

Seeks to generate regular income. Invests primarily in units of other mutual funds that invest in fixed-income securities. 

CIBC Core Fixed Income Pool - ETF Series (Ticker: CCRE)

Seeks to generate regular income, with a secondary focus on generating modest long-term capital appreciation. Invests primarily in units of other mutual funds that invest in fixed-income securities.

CIBC Core Plus Fixed Income Pool - ETF Series (Ticker: CPLS)

Seeks to generate regular income and modest, long-term capital appreciation. Invests primarily in units of other mutual funds that invest in fixed-income securities.

CIBC Active Investment Grade Corporate Bond ETF (Ticker: CACB)

Seeks to generate a high level of current income while preserving capital. Invests primarily in bonds, debentures, notes and other debt instruments of Canadian issuers.

CIBC Sustainable Canadian Core Plus Bond Fund - ETF Series (Ticker: CSCP)

Seeks to achieve a high level of income and some capital growth by investing in a diversified portfolio comprised primarily of fixed-income securities issued by Canadian governments and corporations and to follow a socially responsible approach to investing.

CIBC Flexible Yield ETF (CAD Hedged) (Ticker: CFLX)

Seeks to generate long-term total return and current income. Invests primarily in high-yielding debt and investment-grade fixed-income securities of issuers located anywhere in the world. Exposure to these types of securities will be obtained by investing primarily in the Renaissance Flexible Yield Fund.

CIBC Sustainable Conservative Balanced Solution - ETF Series (Ticker: CSCB)

Seeks to achieve a combination of income and some long-term capital growth by investing primarily in Canadian, U.S., and international equities and fixed-income securities, either directly or indirectly, through investment in other mutual funds and exchange-traded funds, and to follow a socially responsible approach to investing.

CIBC Sustainable Balanced Solution - ETF Series (Ticker: CSBA)

Seeks to achieve a balance of income and long-term capital growth by investing primarily in Canadian, U.S., and international equities and fixed-income securities, either directly or indirectly through investment in other mutual funds and exchange-traded funds, and to follow a socially responsible approach to investing.

CIBC Sustainable Balanced Growth Solution - ETF Series (Ticker: CSBG)

Seeks to achieve a combination of long-term capital growth and some income by investing primarily in Canadian, U.S. and international equities and fixed income securities, either directly or indirectly through investment in other mutual funds and exchange-traded funds and to follow a socially responsible approach to investing.

CIBC Sustainable Canadian Equity Fund - ETF Series (Ticker: CSCE)

Seeks to achieve long-term capital growth by investing in a diversified portfolio comprised primarily of Canadian equity securities and to follow a socially responsible approach to investing.

CIBC Sustainable Global Equity Fund - ETF Series (Ticker: CSGE)

Seeks to achieve long-term capital growth by investing in a diversified portfolio comprised primarily of equity securities from around the world and to follow a socially responsible approach to investing.

CIBC Global Growth ETF (Ticker: CGLO)

Seeks to generate long-term capital growth by investing in a diversified portfolio consisting primarily of equity securities of companies located anywhere in the world. Exposure to these types of securities will be obtained by investing primarily in Renaissance Global Growth Fund.

CIBC International Equity ETF (Ticker: CINT)

Seeks to generate long-term capital growth through capital appreciation by investing primarily in a diversified portfolio of equity securities of foreign companies located in Europe, the Far East, and the Pacific Rim. Exposure to these types of securities will be obtained by investing primarily in Renaissance International Equity Fund.

Index ETFs

Index ETFs are created to match index performance. They can be used to create the foundation of a diversified portfolio that includes a number of asset classes. These ETFs can track broad indexes or specific market segments.

CIBC Canadian Short-Term Bond Index ETF (Ticker: CSBI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a Canadian short-term bond index that measures the investment return of the Canadian investment-grade short-term bond market. Currently, this CIBC ETF seeks to track the Morningstar® Canada 1-5 Yr. Core Bond Index™ (or any successor thereto).

CIBC Canadian Bond Index ETF (Ticker: CCBI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a Canadian aggregate bond index that measures the investment return of the Canadian investment grade bond market. Currently, this CIBC ETF seeks to track the Morningstar® Canada Core Bond Index™ (or any successor thereto).

CIBC Global Bond ex-Canada Index ETF (CAD-Hedged) (Ticker: CGBI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a global aggregate bond index that measures the investment return of the global investment grade bond market. Currently, this CIBC ETF seeks to track the Morningstar® Global ex-Canada Core Bond Hedged CAD Index™ (or any successor thereto).

CIBC Canadian Equity Index ETF (Ticker: CCEI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad Canadian equity market index that measures the investment return of publicly traded securities in the Canadian market. Currently, this CIBC ETF seeks to track the Morningstar® Canada Domestic Index™ (or any successor thereto).

CIBC U.S. Equity Index ETF (Ticker: CUEI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity market index that measures the investment return of publicly traded securities in the U.S. market. Currently, this CIBC ETF seeks to track the Morningstar® US Target Market Exposure Index™ (or any successor thereto). 

CIBC U.S.  Equity Index ETF (CAD-Hedged) (Ticker: CUEH)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad U.S. equity market index that measures the investment return of publicly traded securities in the U.S. market, hedged to the Canadian dollar. Currently, this CIBC ETF seeks to track the Morningstar® US Target Market Exposure Hedged CAD Index™ (or any successor thereto).

CIBC International Equity Index ETF (Ticker: CIEI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad international equity market index that measures the investment return of publicly traded securities in Europe, Australasia and the Far East. Currently, this CIBC ETF seeks to track the Morningstar® Developed Markets ex-North America Target Market Exposure Index™ (or any successor thereto).

CIBC International Equity Index ETF (CAD-Hedged) (Ticker: CIEH)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad international equity market index that measures the investment return of publicly traded securities in Europe, Australasia and the Far East, hedged to the Canadian dollar. Currently, this CIBC ETF seeks to track the Morningstar® Developed Markets ex-North America Target Market Exposure Hedged CAD Index™ (or any successor thereto).

CIBC Emerging Markets Equity Index ETF (Ticker: CEMI)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a broad emerging market equity index that measures the investment return of publicly traded securities in emerging countries in Asia, Latin America, Europe, Africa and the Middle East. Currently, this CIBC ETF seeks to track the Morningstar® Emerging Markets Target Market Exposure Index™ (or any successor thereto).

CIBC Clean Energy Index ETF (Ticker: CCLN)

Seeks to replicate, to the extent reasonably possible and before fees and expenses, the performance of a clean energy index. Currently, this ETF seeks to track the CIBC Atlas Clean Energy Select Index (or any successor thereto).

Quantitative ETFs

Quantitative ETFs use robust research, high-quality data, and strong risk management to enhance investment decision-making and drive superior risk-adjusted returns for clients. These strategies act on empirical evidence, not emotion and are constructed through a combination of investment management, mathematics, statistics and computer science.

CIBC Qx Canadian Low Volatility Dividend ETF (Ticker: CQLC)

Seeks current income and long-term capital growth by investing primarily in Canadian equity securities that are expected to provide regular income from dividends, while seeking to reduce volatility.

CIBC Qx U.S. Low Volatility Dividend ETF (Ticker: CQLU)

Seeks current income and long-term capital growth by investing primarily in U.S. equity securities that are expected to provide regular income from dividends, while seeking to reduce volatility.

CIBC Qx International Low Volatility Dividend ETF (Ticker: CQLI)

Seeks current income and long-term capital growth by investing primarily in foreign equity securities located in Europe, the Far East, and the Pacific Rim that are expected to provide regular income from dividends, while seeking to reduce volatility.

Conclusion

While CAM's ETF shelf may not be as expansive as its bank peers, the firm is intentionally growing its ETF offerings. Evidence of this is gleaned through the select standalone mutual fund offerings they have made available via the ETF structure, such as the CIBC Flexible Yield ETF (CAD Hedged) (sub-advised by DoubeLine), CIBC Global Growth ETF and CIBC International Equity Fund (both sub-advised by Walter Scott & Partners). In seemingly providing ETF series offerings for specific mutual fund mandates, the firm is deliberately choosing how it desires to expand its product shelf.

For investors, CAM's ETF offerings have solutions that can be foundational building blocks or provide access to specific managers that reflect a particular investment thesis.

Please note this article is for information purposes only and does not in any way constitute investment advice. It is essential that you seek advice from a registered financial professional prior to making any investment decision.