ETF surge in Canada sees asset managers step up

Asset managers launch swathe of new products to capitalise on ETF boom.

Rapidly increasing demand for ETFs Canada has seen a number of buy-side firms move back into the market, according to research from The Trade’s sister brand Investor Economics.

The study of ETF sales in the first half of 2016, following on from a record breaking sales year in 2015, found Canadian ETFs saw CAD$10.6 billion in net creations.

As a result of the growing popularity of the asset class a number of buy-side firms in Canada have expanded their offerings. In 2016, TD Asset Management re-entered the ETF space with a suite of passively-managed products, while mutual fund company Mackenzie Investments has launched six ETFs this year alone.

Major US players are also getting into the Canadian market, with WisdonTree Investments launching six ETFs north of the border. Investor Economics research suggests several more are currently on the drawing board and are expected to launch soon.

Retail investor interest has been a key factor in the growth of the asset class in Canada, with almost approximately CAD$34.2 billion invested. They have also gained traction as an underlying investment of open-end mutual funds.

To download a full copy of the report visit the Asset International store.

ETF report 08 2016