XTF Capital Corp. has launched the Canadian Convertible Liquid Universe ETF, Canada’s first Convertible Bond ETF. It will begin trading on the TSX on June 7.

“The Convertible Bond XTF is unique to Canada,” said Barry Gordon, president and CEO of XTF Capital Corp. and its parent company, First Asset. “Our deep experience with convertible bonds puts XTF Capital Corp. in a position to properly assess the eligible universe and make the subtle decisions for inclusion or exclusion from the portfolio.”

The investment objectives of the ETF are to provide holders with quarterly cash distributions, and the opportunity for capital appreciation by investing on a capitalization weighted basis in a portfolio of Convertible Bonds of Canadian issuers.

Inclusion of a convertible bond in the portfolio is based upon the following criteria:

  • minimum market capitalization outstanding of $50 million;
  • minimum trailing 30 day average daily volume traded of $150 thousand;
  • publicly traded on a stock exchange in Canada;
  • not currently in default of payment of either interest or principal; and
  • at least 31 days to maturity (either term or next call).