Ninepoint Files Preliminary Prospectus for Nine New Single-Stock ETFs
Executive Summary
- Ninepoint Partners filed preliminary prospectuses for nine new single‑stock ETFs, expanding its HighShares lineup and introducing the first CoreShares ETF (Constellation Software).
- All ETFs will charge a low 0.29% management fee and aim to deliver long‑term capital appreciation with high monthly cash distributions via covered‑call writing.
- The funds are not yet available for sale; they will launch after receipt of final prospectuses from Canadian securities regulators.
Key Details
- Products announced:
- Ninepoint Constellation Software CoreShares ETF (Ticker: CSUC) – unlevered single‑stock exposure.
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Eight Ninepoint HighShares ETFs (levered): CSHI, CLHI, KGHI, NVHI, TSHI, PLHI, GOHI, INHI.
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Risk rating: All listed as “High”.
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Management fee: 0.29% for both HighShares and CoreShares ETFs.
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Distribution strategy: Monthly cash distributions (eligible Canadian dividends, net income, capital gains, or return of capital) with DRIP eligibility.
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Investment approach:
- Levered HighShares ETFs will write covered call options on a portion of holdings; the proportion varies with market conditions and distribution policy.
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CoreShares ETF will hold Constellation Software shares without leverage.
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Target investors: Qualified for registered plans (RRSP, RRIF, TFSA, RESP, RDSP, FHSA).
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Regulatory status: Preliminary prospectus filed and receipted in all Canadian provinces/territories; final prospectus pending before any sales can occur.
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Assets under management (AUM) of Ninepoint Partners: Approximately $8 billion.
Notable Quotes
“Yield matters, but net return matters more. We are resetting the market standard by offering the lowest management fees in the single‑stock category,” – Karl Cheong, CFA, Executive Vice President and Head of ETFs, Ninepoint Partners.