ADMS 4501 – Section N - Assignment 3
Total Marks 14 – worth 2% of course grade
Deadline: Tuesday March 21 at 8pm
Part 1 – ETF Investing (10 marks)
Resource: Your Guide to ETF Investing Fall 2016
Instructions for Part 1:
• Each group member needs to choose one question from the list below
• Please organize your answers into a single report (per group) to be emailed to me by Tuesday
March 21 at 8pm and identify the name of the person who answered each question.
• Your Part 1 mark will be based only on your answer. (max ¾ page per answer; font size Calibri
11, single spaced)
• If you only have 3 group members, just choose 3 questions (1 each) from the list below.
Q. Explain the difference between Hedged and Unhedged ETFs and give one Canadian example of each.
Hedged ETFs usually mean the ETF has an underlying basket of foreign securities but the currency is
hedged back to the domestic currency. For example, a Canadian investor can purchase an ETF that is
traded on a Canadian exchange that holds the S&P 500 index (USA stocks). The investor can purchase a
hedged ETF or an unhedged ETF. The unhedged ETF will also give the investor CAD/USD exposure, so if
the USD depreciates relative to the CAD, the return on the investment will be lower than with a hedged
ETF. (See page 5 article)
Example CAD Hedged ETF: RWW (First Asset MSCI Low Risk ETF - hedged)
Example: CAD Unhedged ETF: RWW.B (First Asset MSCI Low Risk ETF - Unhedged)
Questions List – see next page Part 1 Questions List (Each group member choses one question)
Question 1 – Sector ETFs
a) Explain how ETFs can help an investor pur