First Asset Can-Energy Covered Call ETF - OXF

ETF Overview

The investment objective of Can-Energy Covered Call ETF ("Can-Energy ETF") is to provide holders, through an actively managed portfolio, with:

quarterly cash distributions
the opportunity for capital appreciation by investing on an equal weight basis in a portfolio of securities of the 25 largest issuers measured by market capitalization chosen from the S&P/TSX Capped Energy Index
lower overall volatility of returns on the portfolio than would be experienced by owning a portfolio of securities of such issuers directly

Active Management

This fund has an active management 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. ).

Key ETF Data

Fundamentals
Category (main)	Active Canadian Equity Income (large cap) and Covered Calls: Energy Sector
Category (other)	Active Equity & Covered Call - Energy Sector
Underlying Index	No Index
ETF Structure	Active management. No index
Asset Class	Equity and Options (Covered Calls) - Energy Sector
Region	Canada
Issuer	First Asset
ETF Home Page	Available here

Fund Facts
Inception Date	June 1, 2011
Total Holdings	25 + Options
Distribution Frequency	Quarterly
Leverage	None
Significant Currency Exposure	No
Currency Hedging	Not applicable

Fees
Management Fee	0.65%
Management Expense Ratio (MER)	0.68% *

* 2011

Trading Information
Ticker	OXF
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:

ETF Analysis

Covered Call Strategy ETFs typically have a dual strategy: they try to replicate the returns of an index, and sell covered call options on some/all of their holdings.

The upside of selling covered call options is that the fund earns a premium for each option sold. The downside is that the upside potential of the ETF is limited due to the covered call option selling.

Before buying an ETF that uses a covered call strategy ensure you understand how such strategies work, and are comfortable with its advantages, risks and limitations.

Options are a somewhat complex financial instrument. They are relatively easy for some investors to understand, difficult for others. Since Covered Call Strategy ETFs use options, it would be wise to understand how they work before investing in any Covered Call Strategy ETFs.

Also understand the amount (if any) of Return of Capital the fund may pay out with distributions. ROC payments reduce your holding's capital.