Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (2025)

Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (1)

The past year continued to be marked by global challenges, ranging from regional conflicts to political strife, alongside significant political changes closer to home on both sides of the border. Despite these challenges, the S&P/TSX Composite rose by 18% and the S&P 500 gained 23% through November 30, 2024. These impressive returns reflect the strong performance of markets at large with all but one Canadian Investment Funds Standards Committee (CIFSC) category generating significant positive returns.

While broad returns have been high across the board, certain funds distinguish themselves by delivering consistent returns while limiting price volatility. Greater price stability reduces investment risk by providing more predictability in the value of an investment. Risk-adjusted returns take this into account and reflect the amount of risk it took to generate a given return. These returns form the basis of the FundGrade A+® Awards.

The annual FundGrade A+ Awards hosted by Fundata Canada recognize and acknowledge excellence in the Canadian investment fund industry through the year. The award is based on strictly objective criteria and looks at funds’ risk-adjusted returns from 2 through 10 years. Funds are assigned a monthly grade, and those that consistently earn a high grade throughout the year are awarded an A+ rating.

Two ETFs leading their respective categories are among the contenders for the 2024 A+ Awards.

New category, new winner

Middlefield Sustainable Global Dividend ETF (TSX: MDIV) is not only in line to win its first A+ Award but it would also do so in one of two new CIFSC categories launched this year: Global Dividend & Income Equity. Along with a U.S. counterpart, the CIFSC created these categories as peers to the Canadian Dividend & Income Equity category, reflecting the growing popularity of dividend-focused investments outside of Canada.

With a dividend yield of nearly 4% and a 1-year return of 44% through November 30, MDIV has one of the highest returns of all potential A+ funds and a dividend yield nearly double its category benchmark. This performance is no exception as the fund has consistently earned high returns throughout the 10-year period included in the A+ calculation, culminating with a 10-year Sharpe ratio of 0.79 on an 11.4% annual return.

MDIV also follows a responsible investment mandate and is flagged by the CIFSC Responsible Investment Framework as ESG Best in Class, ESG Exclusions, and ESG Related Engagement and Stewardship Activities. The fund specifically screens for companies that exhibit above-average ESG characteristics, while excluding companies in “ethically-contentious industries” (such as tobacco and weapons). In addition, the manager engages with the companies they invest in to advance ESG initiatives through meetings and proxy voting.

Classic category, distinguished performance

Another strong first-time contender for a FundGrade A+ Award in the Canadian Equity category is First Trust Canadian Capital Strength ETF (TSX: FST). The fund delivered a 1-year return of nearly 35% through November, coupled with a low standard deviation of 2.44%. Its 1-year Sharpe ratio of 0.89 has significantly outperformed the category average Sharpe ratio of 0.65, driven largely by the category’s much higher volatility of 8.6%.

What is behind FST’s consistent outperformance? The fund employs a “bottom-up, multi-step quantitative and fundamental stock selection strategy” that aims to identify what manager First Trust Portfolios calls “capital strength issuers.” These companies are characterized by four key factors: well-capitalized balance sheets; the ability to grow earnings; high liquidity; and a history of profit growth and financial strength. These factors have led the fund to an annual return of 12.4% over the past five years.

Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (2)

John Krisko, CFA, BBA, is Vice President, Investment Analytics at Fundata Canada Inc. and is Vice Chair of the Canadian Investment Funds Standards Committee (CIFSC).

Notes and Disclaimers

© 2025 by Fundata Canada Inc. All rights reserved. Reproduction in whole or in part by any means without prior written permission is prohibited.

Commissions, management fees, and expenses all may be associated with exchange-traded fund (ETF) investments. Please read the simplified prospectus before investing. ETFs are not guaranteed and are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Fund values change frequently and past performance may not be repeated. The foregoing is for general information purposes only and is the opinion of the writer. No guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting or tax advice.

Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (3)

Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (4) Article content provided by FundLibrary.com (original source)

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Bluebay $U.S. Global Inv Grade Corp Bd Fd (Cda) (RBF324.CF) Quote - Press Release (2025)
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