Key Takeaways
- • LongPoint Asset Management launched six triple-leveraged index ETFs on Friday, May 23, 2025, with five more (including gold miners, banks and 20+ year Treasury funds) slated for TSX listing on May 29, according to Investment Executive.
- • The first wave comprises three 3X long funds (QQQU, SPYU, SOXU) and three -3X inverse funds (QQQD, SPYD, SOXD), each carrying a 1.55% management fee and no currency hedging to the U.S. dollar.
- • CEO and founder Steve Hawkins positioned the products for sophisticated, short-term active traders, saying they should be only "a very small portion" of a portfolio.
- • Hawkins noted leverage resets daily, so returns compound up or down each day, meaning multi-day results can diverge materially from three times the benchmark's return.
- • The same roundup covered Manulife's four new ETF series, CIBC's two CLO-focused mutual funds, Mackenzie's two new mutual funds, RQI's first offshore vehicle, a CAD-linked stablecoin, CI's mutual fund series expansion and Russell Investments' proposed fund mergers.
Summary
LongPoint Asset Management Inc. launched six triple-leveraged index ETFs on Friday in an effort to keep Canadian investment dollars at home, and it has more products in the pipeline. The first wave consists of three triple-leveraged long funds and three triple-leveraged inverse funds, which before fees and expenses seek to deliver three times the daily return or inverse return of a specific benchmark. The long funds are MegaLong (3X) NASDAQ-100 (TSX: QQQU), S&P 500 (TSX: SPYU) and US Semiconductors (TSX: SOXU). The inverse funds are MegaShort (-3X) NASDAQ-100 (TSX: QQQD), S&P 500 (TSX: SPYD) and US Semiconductors (TSX: SOXD). Each carries a 1.55% management fee and does not hedge currency exposure to the U.S. dollar.
Founder and CEO Steve Hawkins said the funds are among the first of their kind in Canada and give domestic investors access to products they would otherwise buy in the U.S. "It's very disappointing to see active Canadian investors trading U.S. ETFs when a Canadian ETF equivalent doesn't exist," he said in an interview. Five additional funds are expected to list on the TSX on May 29: MegaLong (3X) 20+ Year US Treasury (TLTU), Canadian Banks (BNKU) and Canadian Gold Miners (CGMU), and MegaShort (-3X) 20+ Year US Treasury (TLTD) and Canadian Gold Miners (CGMD). The products are designed to let investors act on short-term market signals, momentum shifts and geopolitical developments.
While leverage amplifies gains, it equally amplifies losses. Hawkins said the products suit experienced traders with high risk tolerance who monitor positions regularly, adding that they are "not for the faint of heart" and should constitute only a small portion of a portfolio. He also noted that because leverage resets daily, "every day it's a compound either up or down, depending on the return of the underlying ETF."
Elsewhere in the same product roundup, Manulife Investment Management launched four ETF series of existing mutual funds on Wednesday: Core Plus Bond (TSX: MCOR), Fundamental Equity (MFUN), Canadian Equity Class (MCAN) and Dividend Income (MDIF), with management fees ranging from 0.45% to 0.83%. CIBC Asset Management introduced the actively managed CIBC Income Advantage Fund and CIBC U.S. Dollar Income Advantage Fund, which invest in collateralized loan obligations, alongside an ETF series of the Canadian fund (Cboe: CCLO) carrying a 0.3% management fee. Mackenzie Investments launched the Mackenzie International All Cap Equity Fund and the Mackenzie US Value Fund, which is sub-advised by Putnam Investments; both carry a 0.8% management fee. RQI Investors launched a Global Value Fund, its first vehicle offered outside Australia, seeded with US$20 million from a family office and a US$30 million co-investment from parent First Sentier Investors. The strategy manages more than US$6.5 billion. Transactix Financial introduced CADX, a Canadian dollar-linked stablecoin backed by $50 million in Canadian assets. CI Global Asset Management added mutual fund series for three existing ETFs, and Russell Investments Canada proposed four fund mergers, with special meetings on or about Aug. 1 and mergers effective on or shortly after Aug. 8.
Founder and CEO Steve Hawkins said the funds are among the first of their kind in Canada and give domestic investors access to products they would otherwise buy in the U.S. "It's very disappointing to see active Canadian investors trading U.S. ETFs when a Canadian ETF equivalent doesn't exist," he said in an interview. Five additional funds are expected to list on the TSX on May 29: MegaLong (3X) 20+ Year US Treasury (TLTU), Canadian Banks (BNKU) and Canadian Gold Miners (CGMU), and MegaShort (-3X) 20+ Year US Treasury (TLTD) and Canadian Gold Miners (CGMD). The products are designed to let investors act on short-term market signals, momentum shifts and geopolitical developments.
While leverage amplifies gains, it equally amplifies losses. Hawkins said the products suit experienced traders with high risk tolerance who monitor positions regularly, adding that they are "not for the faint of heart" and should constitute only a small portion of a portfolio. He also noted that because leverage resets daily, "every day it's a compound either up or down, depending on the return of the underlying ETF."
Elsewhere in the same product roundup, Manulife Investment Management launched four ETF series of existing mutual funds on Wednesday: Core Plus Bond (TSX: MCOR), Fundamental Equity (MFUN), Canadian Equity Class (MCAN) and Dividend Income (MDIF), with management fees ranging from 0.45% to 0.83%. CIBC Asset Management introduced the actively managed CIBC Income Advantage Fund and CIBC U.S. Dollar Income Advantage Fund, which invest in collateralized loan obligations, alongside an ETF series of the Canadian fund (Cboe: CCLO) carrying a 0.3% management fee. Mackenzie Investments launched the Mackenzie International All Cap Equity Fund and the Mackenzie US Value Fund, which is sub-advised by Putnam Investments; both carry a 0.8% management fee. RQI Investors launched a Global Value Fund, its first vehicle offered outside Australia, seeded with US$20 million from a family office and a US$30 million co-investment from parent First Sentier Investors. The strategy manages more than US$6.5 billion. Transactix Financial introduced CADX, a Canadian dollar-linked stablecoin backed by $50 million in Canadian assets. CI Global Asset Management added mutual fund series for three existing ETFs, and Russell Investments Canada proposed four fund mergers, with special meetings on or about Aug. 1 and mergers effective on or shortly after Aug. 8.
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