iShares Short Duration High Income ETF (CAD hedged) - CSD

ETF Overview

The fund seeks to maximize total returns, consisting of both tax-efficient monthly distributions and capital appreciation, and to preserve capital, less fees and expenses.

Distributions are intended to be tax efficient when compared to units of a trust that depend solely on interest, dividend and/or other investment income to pay distributions.

This fund is one of the few iShares Canada ETFs that have an active mandate ( A minority of ETFs have an active investment management mandate or a degree of active investment management. Full active management involves an investment manager actively managing the fund - deciding which securities to buy/sell, and when etc. However, many 'active' ETFs employ only partial active investment management, not full. ), not passive ( Most ETFs are passively managed - they have no active investment management. Passive ETFs simply try to replicate the returns of an index as closely as possible, such as the S&P/TSX 60 Index. ).

Forward Rate Structure

The Fund utilizes a Forward Agreement structure with a Canadian chartered bank or an affiliate thereof in order to provide exposure to the actively managed diversified portfolio (the "High Income Portfolio"). Amounts equal to the income generated by the High Income Portfolio (interest and/or foreign income) will be paid to Unitholders of the ETF primarily as return of capital distributions and as distributions of capital gains.

Depending upon the application of a proposed measure in the 2013 Federal Budget relating to any extension or replacement of the Forward Agreement following the Budget date, such distributions may be treated as ordinary income.

Be aware that the forward structure adds additional costs to the ETF. These costs are not included in the MER.

Additional Index Information

CSD will obtain exposure to the performance of an actively managed diversified portfolio consisting primarily of below investment grade debt securities with an opportunistic allocation to investment grade debt securities and other select fixed income debt obligations with a near term maturity of five years or less and/or an effective duration of less than one year.

Key ETF Data

Fundamentals
Category (main)	USA Fixed Income - Corporate (non-investment grade)
Underlying Index	No Index
ETF Structure	Active management. No index
Asset Class	Fixed Income - Corporate (non-investment grade)
Region	USA
Issuer	iShares Canada by Blackrock
ETF Home Page	Available here

Fund Facts
Inception Date	24 Feb 2011
Total Holdings	243
Distribution Frequency	Monthly
Leverage	None
Significant Currency Exposure	Yes
Currency Hedging	Yes

Fees
Management Fee	0.55%
Management Expense Ratio (MER)	0.61%
Forward Structure Costs	0.55% to 0.75%

Trading Information
Ticker	CSD
Exchange	TSX (Toronto Stock Exchange)
Currency	CAD

Eligibility
Eligibility *	RRSP, RRIF, RESP, TFSA, DPSP, RDSP
DRIP available **	Yes
PACC Plan available **	Yes
SWP available **	Yes

* Always check eligibility with your plan operator as plans and accounts can differ

** Not all brokers can facilitate these plans. Check with your broker.

Current Price, Fund Performance, Yield, NAV, Charts etc

To view the TSX or Morningstar fund page for this ETF click on the Fund Data menu tab or below: