Manulife Investments launches two new ETF offerings

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With $845 billion in total assets under management as of March 31, 2024, Manulife Investment Management is a well-recognized and highly regarded asset manager in North America. Attaining such a size and stature requires ongoing product development and enhancement of their investment product line-up.

Recently, Manulife Investment Management launched a series of new ETF offerings that provide investors with exposure to dividend securities and utilize covered call strategies. These are actively managed by Manulife Investment Management’s Multi-Asset Solutions Team and its systematic equity beta team.

In speaking about the launch of these solutions, Jordy Chilcott, Head of Retail Intermediary Distribution, Canada, Manulife Investment Management, said, “We’re pleased to be leveraging the experience of Manulife Investment Management’s multi-asset solutions and systematic equity beta teams and the success of our original dividend ETFs to expand our capabilities in high-demand asset classes and provide alpha at a competitive price.”

In this article, we’ll examine Manulife Investment Management‘s recently launched ETF offerings, their individual investment objectives, and how investors can utilize them.

A look at each solution

Manulife Smart Enhanced Yield ETF (Ticker: CYLD)

Manulife Smart Enhanced Yield ETF seeks to provide a steady flow of income and long-term capital appreciation by investing primarily in a diversified portfolio of Canadian dividend-paying securities and derivative instruments related to those securities.

Manulife Smart U.S. Enhanced Yield ETF (Tickers: UYLD, UYLD.B & UYLD.U)

Manulife Smart U.S. Enhanced Yield ETF seeks to provide a steady flow of income and long-term capital appreciation by investing primarily in a diversified portfolio of U.S. dividend-paying securities, as well as derivative instruments related to those securities.

Despite targeting distinct equity markets, both funds leverage a consistent strategy to achieve their individual goals. This strategy involves a proprietary quality dividend screen that identifies securities with attractive dividend characteristics, including high and sustainable current payouts or strong potential for future growth. The manager prioritizes these securities by allocating a larger portion of assets to them, optimizing the portfolio’s risk-reward profile. To further enhance income generation, a dynamic option overlay strategy complements the core dividend focus.

The investment approach being employed by the Manulife Investment Management Multi-Asset Solutions Team seeks to create a high-quality solution capable of generating consistent income through varying business cycles by focusing on best-in-class, fairly valued companies.

In speaking about the value proposition of these mandates, Mark Bankay, Head of ETFs, Manulife Investment Management, said, “We’re excited to grow our ETF lineup with two new solutions for investors looking for income and long-term capital appreciation. Utilizing a proprietary call-put strategy, the Manulife Smart Enhanced Yield ETF and Manulife Smart U.S. Enhanced Yield ETF can be useful solutions for advisors and individual investors alike to gain some equity exposure upside while mitigating downside market risks.”

Takeaway

For investors interested in dividend-focused investing, the Manulife Smart Enhanced Yield ETF and Manulife Smart U.S. Enhanced Yield ETF, respectively, provide exposure to a diverse grouping of Canadian and U.S. companies capable of making regular cash dividend payments and utilize an option-writing strategy to augment the fund’s income generation capabilities.

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.