rate
Arrow EC Income Advantage Alternative Fund ETF Series
Diversify your core portfolios for conservative investors with an inflation-protected bond strategy
Daily Closing Price
$21.21
As of 01/29/2025
1 Day Price Change
$0.00
As of 01/29/2025
Current Portfolio Yield
4.7%
As of 12/31/2024
Distribution Yield
4.6%
As of 12/31/2024
Fact Sheet
Prospectus
8.17%
2024 Return
Top Decile Performance during volatile year for fixed income funds
0.23
Interest Rate Duration
Performance of strategy unaffected by rising or falling interest rates
0.29
Correlation to FTSE TMX Universe
Adding Fund to Portfolio Improves Diversification

RATE ETF Strategy

RATE is an actively managed Exchange Traded Fund (ETF) that seeks to generate attractive risk-adjusted returns with low volatility in all interest rate environments. Unlike traditional fixed income strategies, RATE etf maintains attractive exposure to a diversified portfolio of Canadian investment grade corporate bonds, seeking to eliminate the interest rate risk associated with such bonds

RATE ETF Description

RATE provides investors with an inflation-protected fixed income solution to diversify their portfolio. RATE etf is a corporate bond portfolio of the largest most credit-worthy issuers in North America incorporating hedging strategies to reduce the interest rate risk associated with fixed income holdings

RATE ETF Upside Potential

Enhanced exposure to credit spreads for potential capital gains

RATE ETF Income Potential

4.7% current internal portfolio yield provides substantial payout coverage

RATE ETF Diversification Potential

Low portfolio duration and low correlation to DEX provides significant fixed income portfolio diversification

Fund Details

As of As of 12/31/2024
ticker
RATE
strategy assets
$ 867 Million
type
Active Fixed Income ETF
risk rating
Low to Medium
registered plan eligibility
Eligible
primary exchange
TSX
portfolio manager
Arrow Capital Management Inc.
sub-advisor
East Coast Asset Mngt. SEZC

Video Commentary

Quarterly Webinar

RATE offers advisors a quarterly webinar that provides updates on strategy performance, global markets and our outlook for different asset classes. Please click on the button below to sign-up to receive our next webinar featuring RATE's portfolio managers

Peer Analysis

Get Monthly Updates

RATE offers advisors a monthly peer analysis that provides key metrics to evaluate the strategy for your clients. Please click on the button below to get the full peer analysis showing performance, upside / downside capture, beta and correlation

Arrow EC IncomeAdvantage Alternative ETFBMO Short Corporate Bond ETF
Picton Mahoney FortifiedInc Alt ETFiShares Core CanadianST Corp Bond ETF
Vanguard Canadian Short-term Bond ETFiShares Core CanadianCorporate Bond ETF
BMO Short Federal Bond ETFCIBC Active Investment GradeCorp Bond ETF
Vanguard Canadian Short-term Corp Bond ETFBMO Mid Federal Bond ETF

Performance

As of 12/31/2024
1 Mth (%)3 Mth (%)6 Mth (%)YTD (%)1 Yr (%)3 Yr (%)5 Yr (%)10 Yr (%)Ann ITD
0.38%1.59%3.30%8.16%8.16%6.74%--5.81%

Top Holdings

As of 12/31/2024
Name of Position% of Portfolio
T 4 11/25/257.2%
SUCN 5.6 11/17/256.7%
NAB 3.515 06/12/306.7%
BAC Float 09/15/276.3%
BMO 4.709 12/07/275.8%
ANZ 2.95 07/22/305.6%
BMO 3.803 12/15/325.5%
BNS 5 1/2 05/08/265.4%
CM 4 3/8 10/28/20805.0%
C 5.592 11/19/344.9%

RATE Exposures

As of 12/31/2024
sector% of Portfolio
Financial60.9%
Energy19.2%
Communications9.3%
Utilities6.8%
Consumer Cyclical5.2%
Mortgage Securities1.0%
Diversified0.5%
Asset Backed Securities0.2%
Basic Materials-0.1%
Industrial-0.2%
Funds-0.4%
Technology-0.8%
Consumer Non-cyclical-1.4%
region% of Portfolio
Canada79.8%
U.S.15.9%
Other4.3%

RATE Documents

prospectus
ETF fund facts
peer analysis
quarterly portfolio disclosure

The Series ETF Units of the Arrow EC Income Advantage Alternative Fund were launched on June 15, 2021 and are listed on the TSX with the ticker “RATE”. On June 26, 2020, the East Coast Investment Grade Income Fund (TSX: ECF.UN) was converted from a closed end fund into an open-end alternative mutual fund, renamed Arrow EC Income Advantage Alternative Fund and delisted from the TSX. Details of the conversion are outlined in the information circular which is available at www.sedar.com. Unitholders of Fund had their units redesignated as Series FD Units.

Commissions, trailing commissions, management fees, performance fees and expenses all may be associated with ETF investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compounded total returns net of fees and expenses payable by the fund (except for figures of one year or less, which are simple total returns) including changes in security value and reinvestment of all dividends/distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any securityholder that would have reduced returns. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of an ETF on recognized Canadian exchanges. If the units are purchased or sold on these Canadian exchanges, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

The rates of return are used only to illustrate the effects of the compound growth rate and are not intended to reflect future values or returns on investment in an investment fund.

The “Growth of $1,000” chart shows the final value of a hypothetical $1,000 investment in securities in this class/series of the fund as at the end of the investment period indicated and is not intended to reflect future values or returns on investment in such securities.

The risk level of a fund has been determined in accordance with a standardized risk classification methodology in National Instrument 81-102, that is based on the fund’s historical volatility as measured by the 10-year standard deviation of the fund’s returns. Where a fund has offered securities to the public for less than 10 years, the standardized methodology requires that the standard deviation of a reference mutual fund or index that reasonably approximates the fund’s standard deviation be used to determine the fund’s risk rating. Please note that historical performance may not be indicative of future returns and a fund’s historical volatility may not be indicative of future volatility.

This information on this site is provided as a general source of information and should not be considered personal, legal, accounting, tax or investment advice, or an offer or a solicitation to buy or sell securities. Every effort has been made to ensure that the material contained herein is accurate at the time of publication. Market conditions may change which may impact the information contained on this site.

For major events that may affect the performance of a fund in the last 10 years, including its participation in an amalgamation or merger with another fund or a change in its investment objectives or portfolio advisor, please refer to the “History of the Fund” section in the fund’s most recently-filed Annual Information Form.