Evolve Funds sets the record straight: It is here to stay! Its first ETF suite is not yet available to the public that Evolve already filed to launch its second suite. The new suite covers ethical investing ETFs and covered call sector ETFs. It is interesting to follow the future development of these innovative solutions, in particular CYBR, HERS and CARS. Until now, Canadian investors have shown little interest in such niche ETFs.
Reputation of ETF sponsors plays a key role in determining the success of an ETF in Canada. For instance, lesser-known ETF Issuers such as Redwood and Excel Funds, have more difficulties in attracting assets compared to AGF or Franklin Templeton, which entered the industry at approximately the same time. Evolve Funds, being a brand new company, may experience the same problems. Time will tell if Evolve Funds will thrive against all odds.
RBC GAM also filed a preliminary prospectus with regulators to launch four active fixed income ETFs. The management fee on these ETFs range from 0.50% to 0.85%. BlueBay Asset Management LLP will act as the portfolio sub-advisor to RBDI.
At the end of July, the ETF industry’s AUM fell to $130.6 Billion despite net inflows of around $386 Million. Decline in assets is attributed to lower market performance. First Asset announced the launch of the First Asset U.S. TrendLeaders Index ETF (SID). The ETF has been designed to replicate the performance of the CIBC U.S. TrendLeaders Index, net of expenses. SID charges a management fee of 0.75%.
In other news, WisdomTree and Questrade announced a strategic agreement where WisdomTree Canada will acquire the right to manage Questrade’s eight ETFs with approximately CAD $89 million in AUM. In addition, WisdomTree Canada will become a premier provider of ETFs available for purchase commission-free on Questrade’s self-directed platform. Both companies will collaborate to develop ETF educational resources for Questrade’s clients. The acquisition is a big move for the US-based asset manager. Since its entrance in the Canadian ETF space, WisdomTree had difficulties attracting assets. The strategic agreement not only doubles the AUM of WisdomTree, but it also provides a distribution channel that is necessary for success in the Canadian industry.
What we’ve been reading elsewhere
First Asset ETFs complete conversion of Advisor Class units to Common Class units
FT Portfolios Canada co. announces risk rating changes
Harvest Portfolios Group Inc. announces DRIP Eligibility for Harvest ETFs
Credits: ETF Insight, ETF Issuers and CETFA
