Intelligence

Canadian ETFs: June’s Launches and Terminations

The Canadian ETF industry keeps on expanding, reaching $308 billion in assets under management at the end of the second quarter. Most new inflows poured in sector ETFs during the first half of the year. In June, eleven new products, including ESG and themed ETFs, were added. 

Franklin Templeton Canada partnered with boutique Investment Managers with proven Sustainability expertise to list a suite of Sustainable investing ETFs. This sustainable ETF suite comprises of a global fixed income ETF, that strives for attractive income generation and total return while guarding against downside risks, a global infrastructure active ETF, which invests in equity securities of sustainable issuers supporting infrastructure assets, and an international growth ETF, which invests in equity securities of sustainable issuers outside the U.S. and Canada. Franklin Templeton Canada will launch two more sustainable ETFs covering emerging markets and global equity markets in July. 

Adding to the ESG trend, Horizons ETFs issued Canada’s first ETF focused exclusively on providing exposure to a portfolio of global green bonds – a type of fixed-income instrument that raises capital for projects with specific environmental objectives or benefits. The Horizons S&P Green Bond Index ETF seeks to replicate the performance of the S&P Green Bond U.S. Dollar Select Index, net of expenses. The Index seeks to measure the performance of global green-labelled bonds issued in U.S. dollars that are subject to stringent eligibility criteria to fund projects that have positive environmental or climate benefits. 

Horizons ETFs also introduced a range of themed ETFs covering the global semiconductor space, global lithium producers and global hydrogen space for the first time in Canada. 

The Horizons Global Semiconductor Index ETF tracks the performance of the Solactive Capped Global Semiconductor Index, designed to provide exposure to the performance of global, publicly listed companies engaged in the production and development of semiconductors and semiconductor equipment. The Horizons Global Lithium Producers Index ETF tracks the performance of Solactive Global Lithium Producers Index, designed to provide exposure to the performance of global, publicly listed companies engaged in the mining and/or production of lithium, lithium compounds, or lithium related components. Horizons Global Hydrogen Index ETF tracks the performance of the Solactive Global Hydrogen Industry Index, designed to provide exposure to the performance of global, publicly listed companies engaged in the development and production of fuel cell technology and equipment, as well as infrastructure, components, and systems for hydrogen generation, storage, and transportation.