Bringing ETF Solutions to Canada’s Individual Fund (and Mutual Fund) Space

In November, the company introduced the Manulife Balanced Dividend ETF Bundle, further expanding ETF access and choice for advisors and investors. Managed by Manulife’s multi-asset solutions team, it has a target asset allocation of 30% in Canadian dividend stocks, 30% in US dividend stocks and 40% in Canadian corporate bonds through the respective Manulife Smart ETF.

“The bundle provides an all-in-one solution for advisors who are looking for a traditional balanced strategy, while simultaneously reducing the need for portfolio rebalancing,” Pappas says. “And we know that the bundle strategy may not be the most appropriate asset mix for some clients, so advisors can use single-asset class ETFs individually for their needs.”

Manulife Balanced Dividend ETF Bundle is available on both mutual funds and different fund platforms; The separate fund version invests in mutual funds which in turn invest in the underlying ETF. The group managing the strategy keeps it on a balanced reversal, rebalancing regularly to ensure it stays within 5% of its asset-allocation targets.

According to Pappas, research from Manulife shows that Canadian corporate bonds have historically offered increased yields and generally have the potential to outperform Canadian bonds. Likewise, she says dividend-raising stocks have historically outperformed the broader stock market and may even be shown to provide protection during periods of high inflation.

“Being at the top of inflation mind, dividends can be particularly useful to clients even in the current environment,” Pappas says.