ETFs – growing stronger and more accessible than ever

Welcome to the Winter 2015-16 edition of ETF World magazine.

Twenty-five years ago the first ETF was launched in Canada. While it took a while for these innovative investment products to catch on, the growth over the last few years has been remarkable. As of October 31st, the Canadian industry reached $86.87 billion – a new record.

Several new firms in Canada have recently announced that they will enter the market in 2016. With this and other encouraging signs of momentum, we are confident that ETFs will see continuing growth and rising popularity. 

Among other developments, the Canadian ETF Association has been working closely with regulators and industry participants towards a plan to allow Mutual Fund Dealers Association (MFDA) advisors to sell ETFs in 2016. Given that ETFs are so well suited for many MFDA clients we naturally believe this is a tremendous step. As part of our work, CEFTA is collaborating with other stakeholders on a solution that will enable MFDA firms gain access to stock exchanges, a functional limitation that has previously hampered these advisors’ ability to sell ETFs.
 
This measure is yet another sign that reflects a coming of age for ETFs. We are confident that given the many benefits ETFs offer, including their low-cost and tax efficiency, advisors and investors will continue to find the ETFs a compelling investment choice.