actively managed or thematic categories, including:
Canada’s first cyber security ETF (CYBR);
Canada’s first gender diversity ETF (HERS);
World’s first future cars ETF (CARS);
Canada’s first innovation ETF (EDGE);
Canada’s first actively managed Blockchain ETF (LINK); and
An actively managed Cannabis ETF (SEED)
For those new to the investment game, what is an ETF?
An Exchange Traded Fund (ETF) is a pooled investment vehicle consisting of stocks, bonds, or other securities.
Similar to mutual funds, ETFs offer diversified exposure to the market in a single investment but unlike mutual funds, investors can buy and sell ETFs on the stock exchange throughout the day. ETFs also generally involve lower costs intraday liquidity and more transparency than mutual funds
The past decade has sparked considerable growth in ETFs - the Canadian market consists of ~28 providers totaling over $160 billion in AUM. As a comparison the mutual fund market is ~$1.5 trillion
Why, generally speaking, are ETFs a preferred investment vehicle compared with Mutual Funds?
ETFs offer the same investment strategies as a Mutual Fund but typically are easier to use. Mutual Funds only trade at one price each day while ETFs are available throughout the day, allowing for ease of trading. These advantages are why ETFs are growing much faster than Mutual Funds.
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