Exchange-Traded Funds Update November 2015

Transcription

1 Exchange-Traded Funds Update November 2015 RICHARD WOO Investment Strategy Group In This Issue 2 Two Exchange-Traded Funds For Exposure To Dividend Growers For The Canadian & U.S. s 3 Q3/2015 Canadian Exchange- Traded Funds Update 6 Reference Websites 7 Canadian ETFs 17 U.S. Major ETFs 20 U.S. - Style ETFs 23 U.S. Sector ETFs 31 U.S. Commodity, Fixed- Income, Currency & Other ETFs 38 International ETFs 48 Disclosures And Disclaimers See Legal Disclaimer and Important Disclosure Footnotes at the end of this report for disclosures, including potential conflicts of interest. Unless otherwise noted, all prices in this report are as of the close of markets on September 30, Dividends Growers For The Canadian & U.S. s In the past 20 years dividends have comprised a significant portion of the historical returns of the S&P/TSX Composite (TSX) and S&P 500 (S&P) indices, representing 45.8% of the TSX s and 39.4% of the S&P s total returns, respectively. Dividends have been a significant source of the total return equation due to the ebb and flow of price returns, which were negatively impacted by the dot.com Bubble of 2000 and the Great Recession of While many investors invest in dividend-paying stocks for the current cash-flow yield, the total returns on these stocks have outpaced the broader market as a result of compounding the reinvested dividend. Investors' portfolios can benefit significantly from companies that have the ability to pay and increase their dividends over time. Dividends Represent A Significant Part Of Total Returns (Local Currency) 20-year period as of Sep. 30, 2015 Total Return (T.R) % Price Return % Div. Return % of T.R. Annualized Return % S&P/TSX Composite Index 357.4% 193.8% 163.6% 7.9% S&P 500 Index 377.0% 228.5% 148.5% 8.1% *As of September 30, Companies that can increase their dividends, year after year, over long periods are usually companies that have strong competitive positions and/or steady revenue bases with consistent earnings and cash flow growth. Thus, an allocation to a basket of dividend-grower stocks can also help to reduce a portfolio s overall volatility while potentially enhancing its long-term total return for investors who reinvest the cash flows. Investing in companies that grow their dividends over time has been a strategy that has outperformed the broad market, in good times and bad times. Between December 31, 1999 and September 30, 2015, a period which contained two major bull markets and two bear markets, the S&P High Yield Dividend Aristocrats Index delivered an annualized total return of 9.4%, compared to just 3.7% for the S&P 500 Index. Dividend grower stocks typically provide better performance with lower down market capture ratios in down markets heightened with volatility. To wit, at the height of the 2008 financial crisis, from July 17, 2008 to November 20, 2008, the S&P/TSX Composite Index fell 42.0% while the ishares S&P/TSX Canadian Dividend Aristocrats Index Fund (CDX-TSX) fell 30.1%. Moreover, in the U.S., the S&P 500 declined 40.0%, significantly more than the SPDR S&P Dividend (SDY-NYSE Arca) ETF s 22.9% decline over the same period. With record-low interest rates in Canada (10-Year Canadian Government bond yield 1.45%) and the U.S. (U.S. 10-Year Treasury 2.05%), dividend-grower stocks represent a compelling alternative for yield and can provide long-term capital appreciation. The U.S. Federal Reserve has backed away from raising interest rates so far this year, but it has stated that it is committed to raising rates, which would be negative for the market values of long-duration, fixed-income instruments. Fixed-income investors could face a high level of interest-rate risk, and could be better served with dividend growers. In this issue of the Exchange-Traded Funds (ETFs) Update, we highlight the ishares S&P/TSX Canadian Dividend Aristocrats Index Fund (CDZ-TSX) and SPDR S&P Dividend ETF (SDY-NYSE Arca) for investors who seek exposure to a diversified portfolio of dividendgrower stocks for the Canadian and U.S. s. CIBC Wood Gundy is a division of CIBC World s Inc., P.O. Box 500, 161 Bay Street, Toronto, Canada M5J 2S8 (416)

2 Investment Strategy Group Two ETFs For Dividend Growers For The Canadian & U.S. s ishares S&P/TSX Canadian Dividend Aristocrats Index Fund Symbol & Exchange: CDZ TSX Price Oct. 30, 2015: $ month Trailing Yield: 3.7% Management Fee: 0.60% Distribution Frequency: Monthly Number of Equity Securities: 70 Assets Under Management: $928.5 million 30-Day Average Volume: 68,600 Proxy Benchmark Index: S&P/TSX Canadian Dividend Aristocrats Index Inception Date: September 8, 2006 Source: ishares by BlackRock and Bloomberg The ishares S&P/TSX Canadian Dividend Aristocrats Index Fund (CDZ-TSX) is based on the S&P/TSX Canadian Dividend Aristocrats Index, which provides exposure to Canadian dividend-grower stocks. To qualify for the index, securities must: i) be common stocks or income trusts listed on the TSE and in the S&P Canada Broad Index; ii) be those of a company which has increased its ordinary cash dividends every year for 5- years, but which can maintain the same dividend for a maximum of two consecutive years within that 5-year period; and iii) have a minimum C$ 300 million market capitalization. Holdings are weighted by the indicated dividend yield, up to a maximum weight of 8%. The index will hold at least 40 securities. The constituent universe is reviewed every December and the index is rebalanced quarterly. Distributions are paid monthly. CDZ is the most liquid dividend grower ETF on the TSX. Top 10 Holdings As Of October 30, 2015 Company Weighting Bird Construction Inc. 5.0% Exchange Income Corp. 4.5% Genworth MI Canada Inc. 2.7% Rogers Communications non-voting 2.7% Wi-Lan Inc. 2.7% Handr Real Estate Investment Trust 2.5% Northern Property Real Estate Investment 2.5% Trust BCE Inc. 2.5% Laurentian Bank Of Canada 2.5% Mullen Group Ltd. 2.4% Total Weighting Of Top 10 Holdings 30.0% Source: ishares by BlackRock and Bloomberg Top Sector Weightings As Of October 30, 2015 Sector Weighting Financials 27% Industrials 19% Energy 18% Consumer Discretionary 12% Telecommunications 7% Top Sector Weightings 83% Source: ishares by BlackRock and Bloomberg SPDR S&P Dividend ETF Symbol & Exchange: SDY NYSE Arca Price Oct. 30, 2015: US$ month Trailing Yield: 5.0% Management Fee: 0.35% Distribution Frequency: Quarterly Number of Equity Securities: 102 Assets Under Management: US$12.9 billion 30-Day Average Volume: 679,300 Proxy Benchmark Index: S&P High Yield Dividend Aristocrats Index Inception Date: November 8, 2005 Source: State Street Global Advisors and Bloomberg The SPDR S&P Dividend ETF (SDY-NYSE Arca) is based on the S&P High Yield Dividend Aristocrats Index, which provides exposure to U.S. dividend grower stocks. To be included in the underlying index, a constituent must be a member of the S&P Composite 1500 Index and have increased dividends every year for at least 20 consecutive years. To remain in the index, a constituent must have at least a $2 billion float-adjusted market capitalization as of the rebalancing reference date. Stocks within the underlying index are weighted by indicated yield (annualized gross dividend payment per share divided by price per share) and weight-adjusted each quarter. Constituent weights are not to exceed 4% at quarterly rebalancing. Distributions are paid quarterly. SDY is the most liquid and lowest cost dividend grower ETF for the U.S. markets. Top 10 Holdings As Of October 30, 2015 Company Weighting HCP Inc. 2.3% AT&T Inc. 2.3% Chevron Corporation 2.2% Catepillar Inc.. 1.9% Realty Income Corp. 1.9% National Retail Properties Inc. 1.9% AbbVie Inc. 1.8% Emerson Electric Co. 1.7% People's United Financial Inc. 1.7% Exxon Mobil Corporation 1.6% Total Weighting Of Top 10 Holdings 19.3% Source: State Street Global Advisors and Bloomberg Top Sector Weightings As Of October 30, 2015 Sector Weighting Financials 24% Industrials 15% Consumer Staples 13% Materials 12% Utilities 12% Top Sector Weightings 76% Source: State Street Global Advisors and Bloomberg 2 November 2015

3 Investment Strategy Group Q3/2015 Canadian Exchange-Traded Funds (ETFs) Update The third quarter of 2015 saw 19 new ETFs launched compared to 23 in the second quarter of 2015 and 17 in the same period a year ago. The top two industry leaders in assets under management, BlackRock ishares Canada and BMO Exchange Traded Funds launched nine and five new ETFs, respectively. Between the two top ETF providers they launched a total of two fixed-income ETFs and twelve equity-based ETFs. Horizons Exchange-Traded Funds launched a total of three new ETFs with active mandates. In terms of recent new entrants, Questrade Smart ETFs launched two new ETFs to add to their six new offerings in the first quarter of BMO Exchange Traded Funds After launching low-volatility ETFs for the Canadian and U.S. markets in 2011 and 2013, respectively, BMO launched a lowvolatility ETF for the international developed markets in the third quarter. BMO Low Volatility International Equity ETF (ZLI-TSX) provides exposure to a low beta weighted portfolio of international stocks in developed countries outside of North America. The ETF utilizes a rules based methodology to build a portfolio of less market sensitive stocks from a universe of international large cap stocks using beta as its key screening criteria. Beta measures the security's sensitivity to market movements. The ETF holds 100 holdings with utilities (19%), financial (17%) and consumer staples (16%) representing the top sectors exposures. On a country exposure; Japan (22%), France (16%) and Hong Kong (12%) represent the there top geographic exposures. The underlying portfolio is rebalanced in June and reconstituted in December. Distributions are paid quarterly. BMO International Dividend Hedged to CAD ETF (ZDH-TSX) is the hedged version of the BMO International Dividend ETF (ZDI-TSX) launched in November ZDH holds ZDI and hedges the foreign currency exposure to the Canadian dollar. Both ETFs provide exposure to a yieldweighted portfolio of dividend-paying equities domiciled in developed markets outside of North America. The ETFs applies a rules-based methodology that considers three-year dividend growth rate, yield, and payout ratio as key criteria to choose international equities. Potential constituents are also subjected to a liquidity screen process. ZDI holds 102 securities, and is rebalanced in June and reconstituted in December. Distributions are paid monthly. Rounding out its portfolio to six covered call ETFs by adding Europe, the BMO Europe High Dividend Covered Call Hedged to CAD ETF (ZWE-TSX) provides exposure to a dividend focused portfolio, while earning call option premiums. The portfolio manager screens for securities for dividend growth, sustainability, and option liquidity. The underlying portfolio is yield-weighted and broadly diversified across sectors. The call options are written out of the money and selected based on analyzing the option's available premium. The option premium provides some limited downside protection. The foreign currency exposure is hedged back to the Canadian dollar. The top three country exposures are Switzerland (18%), France (18%) and Germany (16%). Distributions are paid monthly. BMO US Put Write ETF (ZPW-TSX) and BMO US Put Write ETF (U.S. Dollar Units) ZPW.U-TSX) provides investors with an ETF focused on generating monthly income by writing put options on an underlying portfolio of U.S. large cap equities. The options strategy team writes short-dated out-of-the-money put options by analyzing the available option premiums with the best risk reward profiles, while investing the portfolio in cash equivalents. The ETF may be subjected to a loss if the underlying stock prices decline below their strike prices on its options positions during the option period. This can occur during periods of heighten volatility. If the options expire out-of-themoney the portfolio receives the option premiums. The ETF pays distributions monthly. BMO Exchange Traded Funds Q3/2015 ETF Launches Symbol Exchange-Traded Fund Fee % ZLI BMO Low Volatility International Equity ETF 0.40 ZDH BMO International Dividend Hedged to CAD ETF 0.40 ZWE BMO Europe High Dividend Covered Call Hedged to CAD ETF 0.65 ZPW BMO US Put Write ETF 0.65 ZPW.U BMO US Put Write ETF (U.S. Dollar Units) 0.65 Source: BMO Exchange Traded Funds and Bloomberg Horizons Exchange-Traded Funds Horizons Active CDN Municipal Bond ETF (HMP-TSX) actively invests primarily in a portfolio of Canadian municipal bonds denominated in Canadian dollars. Municipal bonds are debt securities generally issued by cities and municipalities to finance local capital expenditures such as the construction of bridges, highways, airports or schools. The size of the municipal market in Canada is approximately $40 billion according to Bloomberg and PC Bond. Municipal bonds generally offer a higher yield compared to federal and provincial bonds, and are generally lower risk compared to investment grade corporate bonds. The ETF is sub-advised by Fiera Capital Corporation (Fiera) headquartered in Montreal, Quebec with over $90 billion in assets under management. Fiera under normal market conditions can invest up to 75% of the ETF s asset in Canadian municipal bonds that are non-rated these are issues that have not been rated by a ratings agency. Fiera, however, has a team that conducts its own extensive credit analysis to differentiate between the credit qualities of the municipal bonds. The portfolio manager will generally not invest more than 5% of the portfolio s assets in any single non-rated issue. To mange the liquidity of the portfolio, Fiera will generally hold 10% to 20% of the assets in cash, cash equivalents, Canadian provincial government bonds and/or bonds issued by Canadian federal government agencies. Distributions are paid monthly. 3 November 2015

4 Investment Strategy Group HMP is also available in an Advisor Class under the symbol HMP.A-TSX and pays a trailer fee of 0.50%. Horizons Managed Multi-Asset Momentum ETF (HMA- TSX) is an actively managed global momentum-based ETF. The ETF will typically invest in the top seven of 16 global asset classes bases on momentum and then adjusted for risk, primarily through investments in ETFs. The ETF is sub-advised by Landry Investment Management Inc. (Landry) headquartered in Montreal, Quebec. Landry uses a combination of fundamental and quantitative strategies that combines price momentum. Landry will typically select and rank between five and 10 top asset classes, from a universe of 16 asset classes. Each asset class is represented by widely followed indices. Each asset class is ranked by a proprietary model which employs a combination of price momentum factors, a technical overlay, and top-down macro analysis. Landry will generally hold ETFs that replicate the returns of the top-ranked asset classes. A 20% cap is placed on any one of eligible asset classes. The top asset classes will initially be equally weighted, and will be reviewed monthly. Rebalancing thereafter is performed at the discretion of the portfolio manager. Landry will only invest in asset classes that meet the required price momentum factors. If less than seven asset classes are eligible, the ETF will hold cash in lieu of the ineligible positions. To manage downside risk, Landry uses certain moving average triggers to limit drawdowns and can exit positions intra-month. HMA is also available in an Advisor Class under the symbol HMA.A-TSX and pays a trailer fee of 0.75%. Horizons Managed Global Opportunities ETF (HGM- TSX) is an actively managed ETF that seek long-term growth in a variety of global asset classes, which can include equities, fixed income, currency and gold. The ETF is sub-advised by Forstrong Global Asset Management Inc. (Forstrong), formerly HAHN Investment Stewards & Co. headquartered in Toronto, Ontario. Forstrong is a pioneer in managing global ETF portfolios that uses a flexible and tactical asset allocation strategy that uses primarily North American-listed ETFs. Forstrong applies a multi-disciplinary process that includes fundamental and behavioural analysis to screen for attractive investment opportunities, the Forstrong Global team then selects and combines asset types and corresponding ETFs, which they believe are congruent with their macro scenarios/themes. The Forstrong Global team will use hedged and unhedged currency exposures to capitalize on their macro views. HGM is also available in an Advisor Class under the symbol HGM.A-TSX and pays a trailer fee of 0.75%. Horizons Exchange-Traded Funds Q3/2015 ETF Launches Symbol Exchange-Traded Fund Fee % HMP Horizons Active CDN Municipal Bond ETF 0.35 HMA Horizons Multi-Asset Momentum ETF 0.85 HGM Horizons Managed Global Opportunities ETF 0.85 Source: Horizons Exchange-Traded Funds and Bloomberg BlackRock ishares Canada ishares S&P U.S. Mid-Cap Index ETF (XMC-TSX) and ishares S&P U.S. Mid-Cap Index ETF (CAD-Hedged) (XMH-TSX) both hold the U.S. listed ishares Core S&P Mid-Cap ETF (IJH-NYSE Arca), that seeks to track the S&P MidCap 400 Index which consists of 400 constituents of U.S. mid-sized companies. The top three sector exposures are financials (26%), information technology (17%) and industrials (15%). The underlying U.S. ETF is rebalanced quarterly. Distributions are paid semi-annually. XMH hedges the U.S. dollar currency exposure back to Canadian dollars. ishares Conservative Strategic Fixed Income ETF (XSE- TSX) seeks to generate income by investing primarily in securities of six fixed income ETFs managed by BlackRock or an affiliate that provides exposure to Canadian and international fixed income securities which includes government bonds, investment grade corporate bonds, high yield securities, emerging market debt and other types of fixed income investments. The ETF during its quarterly rebalancing will generally limit its total exposure to high yield securities to 25% of its portfolio. As of October 28, 2015 the portfolio s duration was 6.3 years with a weighted average maturity of 9.3 years. Distributions are paid monthly. ishares Conservative Short Term Strategic Fixed Income ETF (XSC-TSX) seeks to generate income for by investing primarily in eight fixed income ETFs managed by BlackRock or an affiliate that provides exposure to Canadian and international fixed income securities, including government bonds, investment grade corporate bonds, high yield securities, emerging market debt and other types of fixed income investments. The ETF will attempt to mitigate interest rate volatility and limit non-investment grade credit exposure. During its quarterly rebalancing the ETF will generally: i) limit its total exposure to high yield securities to 25% of its portfolio; and, ii) limit its exposure to interest rate risk by maintaining portfolio duration of less than five years. As of October 28, 2015 the portfolio s duration was 3.4 years with a weighted average maturity of 4.9 years. Distributions are paid quarterly. During the third quarter BlackRock ishares launched a family of multi-factor index ETFs for exposure to the Canadian, U.S. and Europe, Australasia and Far East (EAFE) markets. These ETFs combine individual factors to create multi-factor combinations. The ishares FactorSelect ETFs combine the four factors of value, momentum, size and quality into one ETF while seeking to keep volatility close to the level of the broad underlying market benchmark. The rules-based methodology assigns a score to each stock in their respective universe based on the four respective factors. Stocks with the highest scores are chosen for their respective country or regional index. Country and sector weights are limited to 5% for the U.S. and EAFE and 10% for Canada. Security constraints are based on market capitalization size. 4 November 2015

5 Investment Strategy Group ishares FactorSelect MSCI Canada Index ETF (XFC-TSX) seeks to provide long-term capital growth by replicating the performance of the MSCI Canada IMI Select Diversified Multiple-Factor (CAD) Index. The ETF holds 85 holds and is rebalanced semi-annually. Distributions are paid quarterly. ishares FactorSelect MSCI USA Index ETF (XSF-TSX) and ishares FactorSelect MSCI USA Index ETF (CAD-Hedged) (XFA-TSX) seek to provide long-term capital growth by replicating the performance of the MSCI USA Diversified Multiple-Factor (CAD) 100% Hedged to CAD Index. XSF holds the constituent securities while XFA holds XSF and hedges the U.S. dollar currency exposure back to Canadian dollars. XSF holds 139 securities and rebalances semi-annually. Distributions are paid quarterly. ishares FactorSelect MSCI EAFE Index ETF (XFI-TSX) and ishares FactorSelect MSCI EAFE Index ETF (CAD- Hedged) (XFF-TSX) seek to provide long-term capital growth by replicating the performance of the MSCI EAFE Diversified Multiple-Factor (CAD) Index. XFI holds the constituents securities while XFF holds XFI. XFF will seek to hedge any resulting U.S. dollar or other foreign currency exposure back to Canadian dollars. XFI holds 190 securities and is rebalanced semi-annually. Distributions are paid quarterly. BlackRock ishares Canada Q3/2015 ETF Launches Symbol Exchange-Traded Fund Fee % XMC ishares S&P U.S. Mid-Cap Index ETF 0.15 XMH ishares S&P U.S. Mid-Cap Index ETF (CAD- Hedged) 0.15 XSE ishares Conservative Strategic Fixed Income ETF 0.50 XSC ishares Conservative Short Term Strategic Fixed Income ETF 0.40 XFC ishares FactorSelect MSCI Canada Index ETF 0.45 XFS ishares FactorSelect MSCI USA Index ETF 0.45 XFA ishares FactorSelect MSCI USA Index ETF (CAD-Hedged) 0.45 XFI ishares FactorSelect MSCI EAFE Index ETF 0.45 XFF ishares FactorSelect MSCI EAFE Index ETF (CAD-Hedged) 0.45 Source: BlackRock ishares Canada and Bloomberg bonds and non-investment grade bonds. The portfolio manager seeks to diversify the portfolio by investing in securities of governments and corporate issuers in a variety of sectors. Government bonds will be used primarily for adjusting the duration of the portfolio. The portfolio manager will invest no less than 70% of the ETFs assets in core fixed income securities. Distributions are paid quarterly. The ETF is sub-advised by Jarislowsky, Fraser Limited (JFL) an asset manager headquartered in Montreal, Quebec, with offices in Toronto, Calgary, Vancouver and New York. The firm manages $36 billion in assets for pension funds, foundations, corporations and individuals in Canada. Questrade Global Total Equity ETF (QGE-TSX) invests in a portfolio of equity securities of global issuers, either through direct purchases of publicly traded companies or ETFs that represent an equity asset class. The ETF will have geographic diversification and exposure to Canada, U.S., developed markets in Europe and Asia and developing markets. The ETF will also be diversified by market capitalization from large cap companies to micro-cap companies around the world. The ETF will also include exposure to publicly traded real estate investment trusts (REITs). The ETF is sub-advised by One Capital Management (OCM), LLC headquartered in Westlake Village, California U.S.A. One of OCM s key investment methodologies is to blend active management of global large cap equities with ETFs and fixed income to construct multi-asset class portfolios. Questrade Smart ETFs Q3/2015 ETF Launches Symbol Exchange-Traded Fund Fee % QCP Questrade Fixed Income Core Plus ETF 0.50 QGE Questrade Global Total Equity ETF 0.85 Source: Questrade Smart ETFs and Bloomberg Note: Some of the recently launched ETFs mentioned in this report may have very thin trading volumes. Investors interested in thinly traded ETFs should use limit orders, not market orders. This will help investors avoid buy orders from being filled at prices well above net asset value and sell orders from being filled well below net asset value. Questrade Smart ETFs Questrade Smart ETFs added two new ETFs to their offerings with a global and fixed income mandate for a total of eight. Both new ETFs are actively managed. Questrade Fixed Income Core Plus ETF (QCP-TSX) seeks to provide a stable rate of return, primarily through income, and to a lesser extent, capital appreciation. The portfolio manager will invest primarily in domestic and international high quality fixed income securities issued by corporations and governments (core fixed income securities), and to a lesser extent, adding yield or enhancing returns on the portfolio by opportunistically investing in international fixed-income securities, emerging market debt, preferred shares, convertible 5 November 2015

6 Investment Strategy Group Reference Websites Website/Product Description ishares offers the world s largest family of Exchange Traded Funds from BlackRock Canadian division of ishares offering the largest family of ETFs traded on the TSX exchange Canadian ETF supplier of leveraged and inverse ETFs, index ETFs, actively managed ETFs, specialty ETFs, and volatility ETFs. BMO Financial Group offers a series of ETFs that cover major Canadian & global asset classes Vanguard offers a wide range of stock and bond ETFs across different asset classes Vanguard Canada offers a family of low MER index ETFs in the equity and fixed income asset classes Invesco PowerShares offers more than 100 domestic and international ETFs and actively managed ETFs CurrencyShares are a group of single country currency trusts managed by Rydex investments State Street Global Advisors family of SPDR ETFs are global leaders in key markets indices & sectors RYDEX SGI offers equal weight, pure style, mega cap, leverage and inverse ETFs HOLDRs (Holding Company Depository Receipts) are a group of unmanaged sector portfolios First Trust Portfolios offers a line up of ETFs that track broad market and industry sector indexes Global X Management offers a series of single-country ETFs Van Eck Global offers ETFs that focus on hard assets such as gold and regions/countries WisdomTree Investments offers ETFs that are fundamentally weighted based on dividends and earnings ProShares is the world's largest manager of leveraged and inverse funds across different asset classes Direxion Shares offers leveraged and inverse-performing ETFs that attempt to triple daily performance The Select Sector SPDRs are ETFs designed to follow the nine key industry sectors within the S&P IndexIQ offers single country small cap, hedged and arbitrage ETFs GlobalShares offers a family of ETFs based on regions and countries worldwide XTF offers Canadian based ETFs based on broad market, sectors and convertible bonds RBC GAM currently offers a family of fixed income target date ETFs Vanguard Canada offers broad country, regions and fixed income ETFs for the Canadian market Purpose offers a family of ETFs providing mainly Canadian equity and fixed income exposure First Asset offers equity ETFs based on Morningstar, MSCI and in house indices along with fixed income Questrade, a Canadian discount broker offers a family of U.S. based smart beta ETFs listed on the TSX Calgary, Canada based firm that focuses on energy and commodities based ETFs and strategies Index Providers Morgan Stanley Capital International (MSCI) designs and calculates global equity indices, which, over the last 40 years, have become the most widely used global equity benchmarks by institutional investors Dow Jones Indexes is a leading full-service index provider that develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products FTSE indices are available for a range of asset classes and world markets The Frank Russell family of broad-market and equity style indexes The STOXX Benchmark indices cover global as well as European, Euro zone and Eastern European markets, tracking precisely the performance of broad market regions and segments Markit iboxx indices are market leading fixed income benchmark indices Information about Scotia Capital s Canadian debt market indices Standard & Poor's indices cover a broad category of assets classes, indices, sectors, countries and regions Stock Exchanges The American Stock Exchange's website provides information on all Amex-listed exchange traded funds, plus quotes and graphing tools AMEX TRADER contains specific end-of-day trading data for each ETF issue as well as historic data including distribution history Exchange Traded Funds section includes general, product and performance information on the universe of ETFs Toronto Stock Exchange website; currently home to all Canadian listed ETFs General Website providing information on ETFs and related information and articles Website providing pull down menus for ETF searches, news and articles Includes and Exchange Traded Funds center with news, commentary and research Websites providing ETF headlines, news and commentary Source: Company websites November 2015

7 Canadian ETFs Canadian Broad XIU ishares S&P/TSX 60 Index ETF $ ,484.5 $22.79 $ $9, HXT Horizon S&P/TSX 60 Index ETF $ $29.10 $24.21 n/a $ XIC ishares Core S&P/TSX Capped Composite Index ETF $ $24.59 $ $1, ZCN BMO S&P/TSX Capped Composite Index ETF $ $20.98 $ $1, PXC PowerShares FTSE RAFI Canadian Fundamental Index ETF $ $25.00 $ $ XCS ishares S&P/TSX SmallCap Index ETF $ $15.69 $ $ VCN Vanguard FTSE Canada All Cap Index ETF $ $31.29 $ $ VCE Vanguard FTSE Canada Index ETF $ $32.93 $ $ CRQ ishares Canadian Fundamental Index ETF $ $14.66 $ $ XMD ishares S&P/TSX Completion Index ETF $ $25.65 $ $ CED First Asset Core Canadian Equity ETF $ $21.88 $ $ HEW Horizons S&P/TSX 60 Equal Weight Index ETF $ $13.00 $ $ PZC PowerShares FTSE RAFI Canadian Small-Mid Fundamental Index ETF $ $20.60 $ $ HXT.U Horizon S&P/TSX 60 Index ETF $ $24.86 $18.86 n/a $ RCE RBC Quant Canadian Equity Leaders Etf $17.16 n/a $20.08 $ $ XFC Ishares Factorselect MSCI Canada Index ETF n/a n/a $20.16 $19.75 n/a n/a 0.45 U.S Broad XSP ishares Core S&P 500 Index ETF (CAD- Hedged) $ $24.75 $ $2, ZSP BMO S&P 500 ETF $ $30.69 $ $2, ZUE BMO S&P 500 Hedged to CAD Index ETF $ $32.92 $ $ XSU ishares U.S. Small Cap Index ETF (CAD-Hedged) $ $28.00 $ $ ZWH BMO US High Dividend Covered Call ETF $ $19.21 $ $ PXU PowerShares FTSE RAFI US Fundamental CAD Hedged Index ETF $ $33.15 $ $ VFV Vanguard S&P 500 Index ETF $ $49.39 $ $ XUS ishares Core S&P 500 Index ETF $ $34.70 $ $ VUN Vanguard US Total Index ETF $ $39.11 $ $ YXM/B First Asset Morningstar US Momentum Index ETF $ $16.75 $12.15 n/a $ ZWA BMO Covered Call Dow Jones Industrial Average Hedged to CAD ETF $ $20.37 $ $ XXM/B First Asset Morningstar US Value Index ETF $ $16.41 $ $ ZQQ BMO Nasdaq 100 Equity Hedged To CAD Index ETF $ $36.36 $ $ YXM First Asset Morningstar US Momentum Index ETF $ $13.30 $11.06 n/a $ HXS Horizons S&P 500 Index ETF $ $50.13 $40.52 n/a $ VSP Vanguard S&P 500 Index ETF CAD-hedged $ $38.22 $ $ VUS Vanguard US Total Index ETF CAD Hedged $ $43.57 $ $ XXM First Asset Morningstar US Value Index ETF $ $13.38 $ $ RUD RBC Quant US Dividend Leaders ETF $ $26.50 $ $ ZDJ BMO Dow Jones Industrial Average Hedged to CAD Index ETF $ $31.71 $ $ CUD ishares US Dividend Growers Index ETF CAD-Hedged $ $33.60 $ $ UXM First Asset Morningstar US Dividend Target 50 Index ETF $ $13.79 $ $ QQC PowerShares QQQ CAD Hedged Index ETF $ $41.28 $ $ CLU ishares US Fundamental Index ETF $ $29.00 $ $ RHU RBC Quant US Dividend Leaders CAD Hedged ETF $ $22.37 $ $44.91 n/a ULV PowerShares S&P 500 Low Volatility CAD Hedged Index ETF $ $30.57 $ $ CIBC Wood Gundy

8 Canadian ETFs XQQ ishares NASDAQ 100 Index ETF (CAD-Hedged) $ $38.94 $ $ PHE/B Purpose Tactical Hedged Equity Fund $ $23.17 $ $32.20 n/a RWU/B First Asset MSCI USA Low Risk Weighted ETF $ $14.86 $ $ PHE Purpose Tactical Hedged Equity Fund $ $24.04 $ $ ZUQ BMO MSCI USA High Quality Index ETF $ $25.44 $ $ XUU ishares Core S&P US Total Index ETF $ $21.49 $ $ CES.B First Asset Core US Equity ETF $ $23.31 $ $ RUD/U RBC Quant US Dividend Leaders ETF $ $21.54 $ $ QMG Questrade Russell US Midcap Growth Index ETF Hedged to CAD $ $20.46 $17.75 n/a $ QMV Questrade Russell US Midcap Value Index ETF Hedged to CAD $ $20.68 $17.68 n/a $ RWU First Asset MSCI USA Low Risk Weighted ETF $ $12.61 $ $ PUD/B Purpose US Dividend Fund $ $22.95 $ $ XUH Ishares Core S&PUS Total Index Etf Cad-Hedged $ $20.46 $ $ CES First Asset Core US Equity ETF $ $21.51 $ $ PEU/B Purpose Enhanced US Equity Fund $ $25.34 $21.27 n/a $ PUD Purpose US Dividend Fund $ $21.13 $ $ PXS PowerShares FTSE RAFI U.S. Fundamental Index ETF $ $20.95 $ $ PEU Purpose Enhanced US Equity Fund $ $23.22 $18.55 n/a $ CES.U First Asset Core US Equity ETF $ $21.13 $ $ PXS.U PowerShares FTSE RAFI U.S. Fundamental Index ETF n/a 0.0 $16.43 $16.34 n/a n/a 0.55 RHS RBC Quant US Equity Leaders Cad Hedged Etf $18.19 n/a $20.52 $ $ RUE RBC Quant US Equity Leaders Etf $20.07 n/a $21.97 $ $ RUE.U RBC Quant US Equity Leaders Etf n/a n/a $16.88 $14.95 n/a n/a 0.39 XMC ishares S&P U.S. Mid-Cap Index ETF $13.92 n/a $15.09 $13.37 n/a $ XMH ishares S&P US Mid-Cap Index ETF CAD-Hedged $13.77 n/a $15.22 $13.52 n/a $ XFS ishares Factorselect MSCI USA Index ETF $19.94 n/a $20.95 $19.51 n/a $ XFA ishares FactorSelect MSCI USA Index ETF Cad-Hedged n/a n/a $21.57 $21.00 n/a n/a 0.45 Canadian Dividend XDV ishares Canadian Select Dividend Index ETF $ $26.03 $ $1, ZDV BMO Canadian Dividend ETF $ $18.43 $ $ CDZ ishares S&P/TSX Canadian Dividend Aristocrats Index ETF $ $27.50 $ $ XEI ishares Core S&P/TSX Composite High Dividend Index ETF $ $23.32 $ $ PDF Purpose Core Dividend Fund $ $25.80 $ $ VDY Vanguard FTSE Canadian High Dividend Yield Index ETF $ $33.04 $ $ RCD RBC Quant Canadian Dividend Leaders ETF $ $21.72 $ $ DXM First Asset Morningstar Canada Dividend Target 30 index ETF $ $11.71 $ $ PDC PowerShares Canadian Dividend Index ETF $ $26.98 $ $ PIN Purpose Monthly Income Fund $ $21.17 $ $ FDY First Trust AlphaDEX Canadian Dividend Plus ETF $ $21.03 $ $ Low & High Volatility ETFs ZLB BMO Low Volatility Canadian Equity ETF $ $27.88 $ $ ZLU BMO Low Volatility US Equity ETF $ $27.60 $ $ XMI ishares MSCI EAFE Minimum Volatility Index ETF $ $34.73 $ $ XMU ishares MSCI USA Minimum Volatility Index ETF $ $38.41 $ $ CIBC Wood Gundy

9 Canadian ETFs XMV ishares MSCI Canada Minimum Volatility Index ETF $ $28.00 $ $ XMM ishares MSCI Emerging s Minimum Volatility Index ETF $ $28.61 $ $ TLV PowerShares S&P/TSX Composite Low Volatility Index ETF $ $26.56 $ $ XMW ishares MSCI All Country World Minimum Volatility Index ETF $ $33.99 $ $ ZLU.U BMO Low Volatility US Equity ETF $ $21.62 $ $ ILV Powershares S&P International Developed Low Volatility Index ETF $ $22.74 $ $9.90 n/a ELV Powershares S&P Emerging s Low Volatility Index ETF $ $20.90 $ $4.32 n/a PLV PowerShares Low Volatility Portfolio ETF $19.61 n/a $20.55 $ $ ZLI BMO Low Volatility International Equity ETF $20.03 n/a $21.14 $ $ Balanced Funds XTR ishares Diversified Monthly Income ETF $ $12.27 $ $ CBD ishares Balanced Income CorePortfolio Index ETF $ $22.46 $ $ CBN ishares Balanced Growth CorePortfolio Index ETF $ $19.67 $ $ Style Funds WXM First Asset Morningstar Canada Momentum Index ETF $ $16.72 $ $ FXM First Asset Morningstar Canada Value Index ETF $ $15.32 $ $ XCG ishares Canadian Growth Index ETF $ $32.97 $ $ XCV ishares Canadian Value Index ETF $ $24.86 $ $ Sector Funds XFN ishares S&P/TSX Capped Financials Index ETF $ $32.99 $ $ XRE ishares S&P/TSX Capped REIT Index ETF $ $17.73 $ $1, ZEB BMO S&P/TSX Equal Weight Banks Index ETF $ $24.76 $ $ ZWB BMO Covered Call Canadian Banks ETF $ $17.87 $ $1, FIE ishares Canadian Financial Monthly Income ETF $ $7.60 $ $ ZWU BMO Covered Call Utilities ETF $ $15.99 $ $ ZRE BMO Equal Weight REITs Index ETF $ $21.10 $ $ XIT ishares S&P/TSX Capped Information Technology Index ETF $ $13.49 $10.41 n/a $ XMA ishares S&P/TSX Capped Materials Index ETF $ $13.82 $ $ ZUT BMO Equal Weight Utilities Index ETF $ $16.46 $ $ XHC ishares Global Healthcare Index ETF (CAD-Hedged) $ $45.44 $ $ CEW ishares Equal Weight Banc & Lifeco ETF $ $10.84 $ $ TXF First Asset Tech Giants Covered Call ETF $ $12.96 $ $ XST ishares S&P/TSX Capped Consumer Staples Index ETF $ $50.51 $ $ ZMI BMO Monthly Income ETF $ $16.96 $ $ XUT ishares S&P/TSX Capped Utilities Index ETF $ $22.29 $ $ VRE Vanguard FTSE Canadian Capped REIT Index ETF $ $29.64 $ $ HXE Horizons S&P/TSX Capped Energy Index ETF $ $26.48 $15.42 n/a $ HXF Horizons S&P/TSX Capped Financials Index ETF $ $32.27 $27.79 n/a $ MXF First Asset Can-Materials Covered Call ETF $ $4.57 $ $ ZIN BMO S&P/TSX Equal Weight Industrials Index ETF $ $22.18 $ $ NXF.B First Asset Energy Giants Covered Call Etf $ $10.49 $ $ NXF First Asset Energy Giants Covered Call Etf $ $10.89 $ $ Base Metals XBM ishares S&P/TSX Global Base Metals Index ETF $ $13.55 $ $ CIBC Wood Gundy

10 Canadian ETFs ZMT BMO S&P/TSX Equal Weight Global Base Metals Hedged to CAD Index ETF $ $12.35 $ $ Fixed Income ZCM BMO Mid Corporate Bond Index ETF $ $16.90 $ $ PSB PowerShares 1-5 Year Laddered Investment Grade Corporate Bond Index ETF $ $19.72 $ $ CBO ishares 1-5 Year Laddered Corporate Bond Index ETF $ $19.84 $ $2, ZFM BMO Mid Federal Bond Index ETF $ $17.30 $ $ ZCS BMO Short Corporate Bond Index ETF $ $15.01 $ $ XSB ishares Canadian Short Term Bond Index ETF $ $29.08 $ $2, PGL PowerShares Ultra Liquid Long Term Government Bond Index ETF $ $24.95 $ $ XCB ishares Canadian Corporate Bond Index ETF $ $22.18 $ $1, XBB ishares Canadian Universe Bond Index ETF $ $32.92 $ $1, ZAG BMO Aggregate Bond Index ETF $ $16.59 $ $ CLF ishares 1-5 Year Laddered Government Bond Index ETF $ $19.61 $ $1, PSA Purpose High Interest Savings ETF $ $50.06 $ $ VSB Vanguard Canadian Short-Term Bond Index ETF $ $25.22 $ $ XSH ishares Core Canadian Short Term Corporate + Maple Bond Index ETF $ $20.16 $ $ VSC Vanguard Canadian Short-Term Corporate Bond Index ETF $ $25.50 $ $ VAB Vanguard Canadian Aggregate Bond Index ETF $ $26.82 $ $ ZPS BMO Short Provincial Bond Index ETF $ $14.61 $ $ XFR ishares Floating Rate Index ETF $ $20.17 $ $ ZDB BMO Discount Bond Index ETF $ $16.36 $ $ XHB ishares Canadian HYBrid Corporate Bond Index ETF $ $21.56 $ $ XSI ishares Short Term Strategic Fixed Income ETF $ $21.13 $ $ CSD ishares Advantaged Short Duration High Income ETF CAD-Hedged $ $19.93 $ $ XQB ishares Core High Quality Canadian Bond Index ETF $ $21.66 $ $ XGB ishares Canadian Government Bond Index ETF $ $23.03 $ $ XRB ishares Canadian Real Return Bond Index ETF $ $26.45 $ $ CLG ishares 1-10 Year Laddered Government Bond Index ETF $ $20.21 $ $ XLB ishares Core Canadian Long Term Bond Index ETF $ $25.69 $ $ ZMP BMO Mid Provincial Bond Index ETF $ $15.95 $ $ HBB Horizons Cdn Select Universe Bond ETF $ $43.91 $41.00 n/a $ PTB PowerShares Tactical Bond ETF $ $20.37 $ $ ZFS BMO Short Federal Bond Index ETF $ $14.98 $ $ PBD Purpose Total Return Bond Fund $ $20.57 $ $ ZLC BMO Long Corporate Bond Index ETF $ $19.49 $ $ CBH ishares 1-10 Year Laddered Corporate Bond Index ETF $ $20.39 $ $ XSQ ishares Core Short Term High Quality Canadian Bond Index ETF $ $20.39 $ $ ZRR BMO Real Return Bond Index ETF $ $19.10 $ $ ZFL BMO Long Federal Bond Index ETF $ $19.35 $ $ BXF First Asset 1-5 Year Laddered Government Strip Bond Index ETF $ $10.46 $ $ ZPL BMO Long Provincial Bond Index ETF $ $16.99 $ $ FSL First Trust Senior Loan ETF CAD Hedge $ $22.21 $ $ CMR ishares Premium Money ETF $ $50.10 $ $ RQD RBC Target 2016 Corporate Bond Index ETF $ $19.54 $ $ CIBC Wood Gundy

11 Canadian ETFs PFL PowerShares 1-3 Year Laddered Floating Rate Note Index ETF $ $20.01 $ $24.83 n/a RQE RBC Target 2017 Corporate Bond Index ETF $ $20.09 $ $ ZST BMO Ultra Short-Term Bond ETF $ $56.62 $ $ RQG RBC Target 2019 Corporate Bond Index ETF $ $20.84 $ $ RQF RBC Target 2018 Corporate Bond Index ETF $ $20.36 $ $ RQC RBC Target 2015 Corporate Bond Index ETF $ $19.36 $ $ RQH RBC Target 2020 Corporate Bond Index ETF $ $21.39 $ $ RQI RBC Target 2021 Corporate Bond Index ETF $ $20.94 $ $ CXF First Asset Canadian Convertible Bond ETF $ $10.04 $ $ ZEL BMO Equity Linked Corporate Bond ETF $ $21.09 $ $ PXF First Asset Provincial Bond Index ETF $ $10.62 $ $ XSE ishares Conservative Strategic Fixed Income ETF $19.90 n/a $20.16 $19.90 n/a $ XSC ishares Conservative Short Term Strategic Fixed Income ETF $19.87 n/a $20.13 $19.86 n/a $ Preferred ZPR BMO Laddered Preferred Share Index ETF $ $14.23 $ $ CPD ishares S&P/TSX Canadian Preferred Share Index ETF $ $16.47 $ $1, HPR Horizons Active Preferred Share ETF $ $10.15 $ $ HFP Horizons Active Floating Rate Preferred Share ETF $ $10.26 $ $ XPF ishares S&P/TSX North American Preferred Stock Index ETF (CAD-Hedged) $ $19.97 $ $ PPS PowerShares Canadian Preferred Share Index ETF $ $18.17 $ $ PR Lysander-Slater Preferred Share ActivETF $9.45 n/a $10.03 $8.97 n/a $ International & U.S. Fixed Income ZHY BMO High Yield US Corporate Bond Hedged to CAD Index ETF $ $15.86 $ $1, ZIC BMO Mid-Term US IG Corporate Bond Index ETF $ $18.99 $ $1, ZMU BMO Mid-Term US IG Corporate Bond Hedged to CAD Index ETF $ $15.32 $ $ XHY ishares US High Yield Bond Index ETF CAD-Hedged $ $21.56 $ $ ZFH BMO Floating Rate High Yield ETF $ $15.41 $ $ ZSU BMO Short-Term US IG Corporate Bond Hedged To CAD Index ETF $ $15.14 $ $ PFH PowerShares Fundamental High Yield Corporate Bond CAD Hedged Index ETF $ $20.89 $ $ ZEF BMO Emerging s Bond Hedged to CAD Index ETF $ $17.22 $ $ CHB ishares US High Yield Fixed Income Index ETF CAD-Hedged $ $20.87 $ $ HSL Horizons Active Floating Rate Senior Loan ETF $ $10.50 $ $ XIG ishares US IG Corporate Bond Index ETF CAD-Hedged $ $24.19 $ $ USB PowerShares LadderRite US 0-5 Year Corporate Bond Index ETF $ $24.39 $ $30.23 n/a VBG Vanguard Global ex-u.s. Aggregate Bond Index ETF CAD- hedged $ $26.75 $ $42.07 n/a VBU Vanguard US Aggregate Bond Index ETF Cad Hedged $ $26.00 $ $19.85 n/a XEB ishares JP Morgan USD Emerging s Bond Index ETF CAD-Hedged $ $21.74 $ $ HTB.U Horizons US 7-10 Year Treasury Bond ETF $ $41.25 $38.54 n/a $12.18 n/a ZIC.U BMO Mid-Term US IG Corporate Bond Index ETF $ $15.01 $ $ HTB Horizons US 7-10 Year Treasury Bond ETF $ $54.46 $46.61 n/a $ USB/U PowerShares LadderRite US 0-5 Year Corporate Bond Index ETF $ $18.73 $ $10.09 n/a FTB First Trust Tactical Bond Index ETF $19.59 n/a $20.20 $ $ QGE Questrade Global Total Equity ETF n/a n/a $20.75 $20.63 n/a n/a 0.85 International & Other 11 CIBC Wood Gundy

12 Canadian ETFs ZDM BMO MSCI EAFE Hedged to CAD Index ETF $ $21.07 $ $ XIN ishares MSCI EAFE Index ETF (CAD-Hedged) $ $25.88 $ $1, XWD ishares MSCI World Index ETF $ $42.53 $ $ CJP ishares Japan Fundamental Index ETF CAD-Hedged $ $16.49 $ $ ZEQ BMO MSCI Europe High Quality Hedged To CAD Index ETF $ $18.64 $ $ XEF ishares Core MSCI EAFE IMI Index ETF $ $28.97 $ $ VXC Vanguard FTSE Global All Cap ex Canada Index ETF $ $31.04 $ $ n/a XEH ishares MSCI Europe IMI Index ETF CAD-Hedged $ $23.89 $ $ XEU ishares MSCI Europe IMI Index ETF $ $23.67 $ $ VE Vanguard FTSE Developed Europe All Cap Index ETF $ $28.74 $ $ n/a VEF Vanguard FTSE Developed ex North America ETF CAD Hedged $ $39.70 $ $ VDU Vanguard FTSE Developed ex North America Index ETF $ $33.51 $ $ RID RBC Quant EAFE Dividend Leaders ETF $ $24.08 $ $ ZDI BMO International Dividend ETF $ $22.26 $ $ CIE ishares International Fundamental Index ETF $ $19.67 $ $ CYH ishares Global Monthly Dividend Index ETF CAD-Hedged $ $18.61 $ $ RHP RBC Quant European Dividend Leaders CAD Hedged ETF $ $24.01 $ $76.34 n/a RHI RBC Quant EAFE Dividend Leaders CAD Hedged ETF $ $24.15 $ $57.79 n/a XAW ishares Core MSCI All Country World ex Canada Index ETF $ $21.73 $ $ RWE First Asset MSCI Europe Low Risk Weighted ETF $ $24.76 $ $ ZXM First Asset Morningstar International Momentum Index ETF $ $24.78 $ $ RID/U RBC Quant EAFE Dividend Leaders ETF $ $19.14 $ $ XFH ishares Core MSCI EAFE IMI Index ETF CAD-Hedged $ $22.51 $ $ PHW Purpose International Tactical Hedged Equity Fund $ $20.88 $ $ PID Purpose International Dividend Fund $ $21.00 $ $ EUR First Trust AlphaDEX European Dividend Index ETF CAD-Hedged $ $23.13 $ $ VA Vanguard FTSE Developed Asia Pacific All Cap Index ETF $ $30.34 $ $21.13 n/a RPD RBC Quant European Dividend Leaders ETF $ $23.83 $ $87.95 n/a VXM First Asset Morningstar International Value Index ETF $ $23.76 $ $ ZGQ BMO MSCI All Country World High Quality Index ETF $ $24.38 $ $ VXB/B First Asset Morningstar International Value Index ETF $ $23.97 $ $ XQB First Asset Morningstar International Momentum Index ETF $ $26.44 $ $ RWE/B First Asset MSCI Europe Low Risk Weighted ETF $ $26.06 $ $ XHU ishares US High Dividend Equity Index ETF $ $20.56 $ $ RPD/U RBC Quant European Dividend Leaders ETF $ $19.02 $ $5.61 n/a RWW First Asset MSCI World Low Risk Weighted ETF $ $25.15 $ $ PXG PowerShares FTSE RAFI Global+ Fundamental Index ETF $ $20.50 $ $ RWW/B First Asset MSCI World Low Risk Weighted ETF $ $26.64 $ $ PXG.U PowerShares FTSE RAFI Global+ Fundamental Index ETF n/a 0.0 $16.50 $15.87 n/a n/a 0.60 PZW PowerShares FTSE RAFI Global Small-Mid Fundamental ETF $19.62 n/a $21.43 $ $ PZW.U PowerShares FTSE RAFI Global Small-Mid Fundamental ETF n/a n/a $16.91 $16.86 n/a n/a n/a PSY PowerShares Global Shareholder Yield ETF $19.14 n/a $21.14 $ $ PSY.U PowerShares Global Shareholder Yield ETF n/a n/a $16.25 $15.87 n/a n/a 0.75 RHF RBC Quant Eafe Equity Leaders Cad Hedged Etf $17.42 n/a $20.41 $ $ CIBC Wood Gundy