First Asset MSCI Europe Low Risk Weighted ETF (CAD Hedged)(RWE)

The Fund has been designed to replicate, to the extent possible, the performance of the MSCI Europe Risk Weighted Top 100 Index Hedged to CAD (the “Index”), net of expenses.

MSCI Europe Risk Weighted Top 100 Index is based on a traditional market capitalization weighted parent index, MSCI Europe Index, which includes developed Europe large and mid-capitalization stocks. Constructed using a simple, but effective and transparent process, each security of the parent index is reweighted so that stocks with lower risk are given higher index weights. The Indexes seek to emphasize stocks with lower historical return variance and tend to have a bias towards lower size and lower risk stocks. Historically, the Index has exhibited lower realized volatility in comparison to its parent index.

ETFinsight

The First Asset MSCI Europe Low Risk Weighted ETF (CAD Hedged) RWE seeks to provide investors with a smoother ride from a volatility standpoint than that of MSCI’s traditional Market Capitalization-weighted Index for the region. Academic studies suggest that higher volatility exposure doesn’t necessarily translate into higher returns in terms of investment results. Investors seeking to dial-down the level of risk they are prepared to tolerate from their European exposure might consider Low Risk Weighting as an alternative candidate for their exposure to the region.

ETF Alternatives for European exposure:

  • First Asset MSCI Europe Low Risk Weighted ETF (Unhedged) (RWE.B)
  • iShares MSCI Europe IMI Index ETF (CAD-Hedged) (XEH)
  • iShares MSCI Europe IMI Index ETF (XEU)
  • First Trust AlphaDEX European Index (CAD Hedged) ETF (EUR)

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