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The Canadian ETF industry has seen staggering growth over the past few years. Assets under management rose by nearly 25 per cent to $150-billion for the year ending Feb. 28, 2018, according to reports from the Canadian ETF Association. The rapid expansion attracted thirteen new providers since the beginning of 2017; the latest to join the ranke being Brompton Funds
Most of the new market players consiste of mutual fund providers wanting a share of the booming industry. The shift to exchange-traded funds can be rewarding, as shown by the success of Harvest Portfolios, PIMCO Canada and AGF Management Limited in the ETF industry. These asset managers each have over $300-million in assets under management less than two years after launching their first ETF suites.
However, venturing into ETFs is not always lucrative, and some issuers are forced out. For instance, Sun Life Global Investment, which recently finalized the acquisition of Excel Funds, will terminate its ETFs and exit the market on May 30, 2018. The exit arises from a lack of alignment with Sun Life’s strategy.
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