Canadian investors now have the option of investing in financial services companies overseas, thanks to a new ETF from Evolve Funds.
Trading under EBNK for CAD-hedged units, EBNK.B for CAD unhedged units and EBNK.U for USD unhedged units, the Evolve European Banks Enhanced Yield ETF on TSX is intended to track the performance of an equal-weighted index . Of the top 20 European banks by market capitalization, writing covered-call options on securities up to 33%.
Raj Lala, President and CEO of Evolve ETF, said, “European banks were one of the top performing regions in Europe last year and have posted their best returns since 2009. This sector is currently pre-COVID. is trading at a steep discount relative to levels and has continued to attract assets to the region in early 2022, with improved economic growth, higher earnings expectations, and the removal of dividend restrictions in other regions such as the US.