Description

This passively managed Exchange Traded Fund (ETF) aims to capture the Canadian value equity market. It systematically identifies and invests in Canadian large and mid-capitalization companies that are deemed inexpensive relative to their industry peers. This selection process relies on a proprietary composite value score, which is also influenced by a size factor adjustment. Typically, this valuation score is derived from a weighted average of four key financial metrics: free cash flow yield, enterprise value to EBITDA (EV/EBITDA), price-to-book (P/B), and forward price-to-earnings (P/E). However, for banking institutions, only P/B and forward P/E are utilized. The resultant portfolio, generally comprising 60 to 100 individual stocks, is weighted according to each security's value score. The holdings are reviewed and rebalanced twice a year.