iShares has added a core, short-term Canadian bond index ETF (ticker symbol is XSQ) to its Core Series.

It says the new fund will offer more fixed income opportunities within the Core Series. Though XSQ, it adds, investors can benefit from low-cost exposure to high-quality, liquid, short-duration Canadian bonds (1-5 years). The bonds have a credit rating of A or higher.

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XSQ has an annual management fee of 0.12%. It’s now closed its initial offering of its units, so they’ll be available for trading starting today.

“In an environment where rising rates are on the horizon, investors are reconsidering how best to access bonds,” says Noel Archard, managing director and Head of BlackRock Canada.

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The details

iShares says XSQ will provide diversified bond exposure, with a weighting of 60% government bonds and 40% corporate bonds.

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The ETF aims to 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.

The iShares Core Series consists of ten funds in total, all of which have been recently renamed. The other nine are:

  1. iShares Core S&P/TSX Capped Composite Index ETF (XTC)
  2. iShares Core S&P/TSX Composite High Dividend Index ETF (XEI)
  3. iShares Core High Quality Canadian Bond Index ETF (XQB)
  4. iShares Core Canadian Short Term Corporate + Maple Bond Index ETF (XSH)
  5. iShares Core Canadian Long Term Bond Index ETF (XLB)
  6. iShares Core S&P 500 Index ETF (XUS)
  7. iShares Core S&P 500 Index ETF, CAD- Hedged (XSP)
  8. iShares Core MSCI EAFE IMI Index ETF (XEF)
  9. iShares Core MSCI Emerging Markets IMI Index ETF (XEC)

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