THE DEVELOPMENT OF ACTIVE STRATEGY ETFS IN CANADA
The IIAC has produced a thought leadership piece titled “The Development of Active Strategy ETFs in Canada”.
Exchange Traded Funds (ETFs) have continued to evolve in Canada since they were initially conceived and launched as Index Participation Units. While the majority of AUM and new ETF flow continues to have very low cost and passive, index-tracking investments, there is growing interest by many investors in the use of a dual approach where they invest a material portion of their assets in low-cost passive issues with much of the remaining investments distributed among higher risk/return ETFs that have higher MERs.
Investors tend to turn to actively managed funds in high volatility periods. With the threat of Omicron continuing, regulatory changes and the risk of higher administered interest rates, ETF markets may continue to experience dynamic and shifting flows in the upcoming year.
For more information, please contact Todd Evans.