Jaime Purvis spoke in the opening ceremonies on "The Canadian ETF Outlook: What's in Store for ETFs in the New Year". Jaime Purvis is Executive Vice President of Horizons ETFs. Their site is Horizonsetfs.com.
Currently Horizon has Benchmark ETFs, Active ETFs and Beta Pro ETFs. There are new classes of ETFs coming on the market such as new Tech ETFs as well as Marijuana ETFs, Robotics ETFs and Cyber Securities ETFs. ETF companies have a tendency to grow and then consolidate, then grow then consolidate. The Mutual Fund companies will probably also grow and then consolidate. Also US companies are moving into Canada.
Mutual Fund companies are now moving into ETFs. There was the Client Relationship Model 2 (CRM2) where investments firms are required to report all fees that their clients are paying. ETFs are noted for their low fees.
The Mutual Fund companies are still growing but their growth is slower than for ETF companies. ETFs funds have grown by 21% since 2016. The growth in actively managed funds is about 30% of ETFs.
Mutual Fund companies going into ETFs include Mackenzie, CI Investments, Franklin Templeton, AGF, Desjardins and Manulife Investments. They all are known for actively management but they do track the indexes. Funds that track an index are quasi ETFs.
It is interesting that in Colorado when they legalized marijuana, beer sales fell.
There are a lot of indexes in the US. In fact there are more indexes in the US than stocks. A lot of the indexes are flawed. What is working for stocks does not necessarily work for fixed income. The innovation in Canada is the growth of actively managed ETFs. There are some 157 of these ETFs in Canada.
People are now doing covered calls and options using ETFs.
On my other blog I wrote yesterday about Accord Financial Corp (TSX-ACD, OTC- ACCFF)... learn more. Tomorrow, I will write about Telus Corp. (TSX-T, NYSE-TU)... learn more on Wednesday, September 20, 2017around 5 pm.
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