New Avantis CIBC ETFs: CAGR, CAKE and CAGX Explained

CIBC has filed a preliminary prospectus for three additions to its Avantis ETF lineup: CAKE, CAGR, and CAGX. Yes, CAKE is really the ticker. The lineup is fairly straightforward: two CAGE-style funds with bonds, and one all-equity fund that largely drops the Canadian home bias.

First, a small but important detail: you cannot buy them yet. The July 10 filing is preliminary. CIBC has applied for TSX listings, but the TSX had not conditionally approved them when the prospectus was filed. The terms can still change before launch.

The three ETFs at a glance

Each one is an actively managed fund of funds. CIBC expects to pay distributions quarterly, and the portfolios can use other ETFs managed by CIBC, Avantis, or their affiliates.

Will they be factor tilted?

The equity side is expected to be. Avantis is the portfolio sub-advisor, and CIBC describes the Avantis process as putting more weight in companies with higher profitability and more attractive valuations. That is the same systematic approach used by the existing Avantis CIBC equity ETFs.

There is a caveat. The preliminary prospectus does not name the underlying ETFs or explicitly require a value and profitability tilt. It only says the underlying funds are generally expected to use active strategies. I think it is fair to describe the equity sleeves as factor tilted, but the exact strength and implementation of those tilts will not be clear until CIBC publishes the holdings.

For CAGX, that expected factor tilt applies across the whole portfolio. For CAKE and CAGR, it applies to the equity portion. The filing says their bond funds are also expected to be actively managed, but it does not provide enough detail to say whether the fixed-income sleeves will follow a distinct factor strategy.

CAKE and CAGR: the missing CAGE portfolios

The quick comparison is VBAL and VGRO, but with factor-tilted Avantis equity funds instead of conventional market-cap index funds.

• CAKE targets a classic 60/40 portfolio for investors who want less volatility and more income than an all-equity fund.
• CAGR targets 80/20 for investors who still want equity-led growth with a smaller bond cushion.

The stock side can cover Canada, the US, international developed markets, and emerging markets. The bond side can include both Canadian and foreign fixed income.

These will not be rigid copies of VBAL and VGRO. The filing gives the portfolio sub-advisor room to move as much as 10 percentage points above or below the target weights and to rebalance the mix at its discretion. We also do not know the exact underlying ETFs or how the bond allocation will be built.

CAGX: CAGE without the big Canada tilt

CAGX is the most interesting of the three to me. Its long-term regional targets are:

The 3% Canadian allocation is the key difference. CAGE's published portfolio started with 30% in Canadian equities. CAGX brings that down to roughly Canada's weight in the global market.

That could make CAGX a useful one-ticket option for someone who wants Avantis's value and profitability tilts without putting nearly a third of the portfolio in Canada. Calling it a Canadian version of VT would go too far, however. CAGX is active, not an index fund, and its holdings can stray from market-cap weights.

What is still unknown

The filing covers the broad structure, but I would want to see the final prospectus, ETF Facts, and fund pages before buying. A few important details are still missing:

• the launch date or whether the TSX will approve the proposed tickers;
• the exact underlying ETFs and regional weights inside CAKE and CAGR;
• the construction and duration of the bond sleeves; or
• the final MER and total cost after fund expenses.

The stated 0.28% is the management fee, not the MER. The preliminary prospectus says fees and expenses of the underlying funds can be additional unless CIBC absorbs or reimburses them. The final all-in cost is worth checking carefully.

My read

CAKE and CAGR round out the Avantis lineup in a sensible way. Investors who like CAGE's approach will soon have 60/40 and 80/20 choices without having to add and rebalance a separate bond ETF.

CAGX is the standout. There are not many simple Canadian-listed choices for a globally weighted, all-cap portfolio with systematic value and profitability tilts. CAKE and CAGR could be just as useful, but I want to see what Avantis puts in the bond sleeves first.

For now, this is a watchlist story, not a reason to change a portfolio. Once the final holdings are available, the useful comparisons will be CAKE versus VBAL, CAGR versus VGRO, and CAGX versus CAGE and broad global index funds.

This article is for general information only and is not investment advice. Read the final prospectus and ETF Facts before investing. See our disclosure.

Sources

• Preliminary prospectus for CAKE, CAGR and CAGX (July 10, 2026), SEDAR+
• How Avantis CIBC ETFs target profitability and attractive valuations, CIBC Global Asset Management
• Avantis CIBC All-Equity Asset Allocation ETF (CAGE), CIBC
• CIBC ETF roadmap and published CAGE allocation, CIBC