Ninepoint Files Preliminary Prospectus for Nine New Single-Stock ETFs
Executive Summary
- Ninepoint Partners filed a preliminary prospectus for nine new single‑stock ETFs, expanding its HighShares lineup and introducing the first CoreShares ETF focused on Constellation Software.
- All ETFs will target high monthly cash distributions, employ covered‑call writing strategies (for HighShares), and carry a low management fee of 0.29%.
- The funds are not yet available for sale; they require receipt of a final prospectus before investors can purchase shares.
Key Details
- New ETFs announced (Ticker – Risk Rating):
- CSUC – Ninepoint Constellation Software CoreShares ETF – High
- CSHI – Ninepoint Constellation Software HighShares ETF – High
- CLHI – Ninepoint Celestica HighShares ETF – High
- KGHI – Ninepoint Kinross Gold HighShares ETF – High
- NVHI – Ninepoint NVIDIA HighShares ETF – High
- TSHI – Ninepoint Tesla HighShares ETF – High
- PLHI – Ninepoint Palantir HighShares ETF – High
- GOHI – Ninepoint Alphabet HighShares ETF – High
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INHI – Ninepoint Intel HighShares ETF – High
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Fund objectives:
- Long‑term capital appreciation via leveraged (HighShares) or unlevered (CoreShares) single‑stock exposure.
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High monthly cash distributions, potentially classified as eligible Canadian dividends, net income, capital gains, and/or return of capital.
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Investment strategy:
- 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 (CSUC) provides straightforward single‑stock exposure without leverage or option writing.
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Management fee: 0.29% for all new ETFs, positioned as the lowest in the single‑stock ETF category.
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Regulatory status: Preliminary prospectus filed and receipted in every Canadian province/territory; final prospectus pending before any sales can occur.
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Investor eligibility: Expected to be qualified investments for registered plans (RRSPs, RRIFs, TFSAs, RESPs, RDSPs, FHSAs) subject to prospectus conditions.
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Distribution features: Monthly income distributions; DRIP‑eligible for automatic reinvestment.
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.