Canadian ETFs: March’s Launches and Terminations

The Canadian ETF Industry ended the first quarter of 2021 with assets under management of $278 billion. The number of new ETF listings keeps on increasing with 23 new listings added in March. 

RBC iShares expanded its Sustainable ETFs suite with three ESG Leaders ETFs. These ETFs currently seek to track MSCI indices that are designed to provide efficient exposure to companies demonstrating more sustainable business practices relative to their industry peers, while providing sector balance and market coverage. The ETFs can be used as sustainable equity building blocks for the core of a portfolio. 

Desjardins also launched an ESG ETF. The Desjardins RI Emerging Markets – Low CO2 Index ETF (“DRME-T”) complements the range of ETFs designed to significantly reduce carbon intensity relative to traditional equity indices. Under normal market conditions, the Fund will primarily invest in large and mid-cap companies from the Scientific Beta Emerging Markets Universe while seeking to deliver a significant reduction in the weighted average carbon intensity of the Fund’s portfolio and ensuring that all Constituent Issuers meet Pre-Determined ESG Standards. 

Emerge Canada Inc. introduced Canada’s first space exploration ETF, sub-advised by ARK Investment Management LLC. The Emerge ARK Space Exploration ETF is an actively-managed exchange-traded fund that invests in global equity securities of companies that are or, are expected to be, focused on leading, enabling, or benefitting from technologically enabled products and/or services that occur beyond the surface of the Earth. Its top holdings, as of March 31st, are Trimble Inc. (“TRMB-Q”)Kratos Defence and Security (“KTOS-Q”) and L3harris Technologies Inc. (“LHX-N”). 

CI First Asset launched the cheapest bitcoin ETF, in terms of management fee. The CI Galaxy Bitcoin ETF is the World’s third bitcoin ETF. Interest in the cryptocurrency space is acceleratingThe first bitcoin ETF has already hit a billion dollars in assets under management in less than two months of tradingHorizons ETFs even came out with an inverse bitcoin ETF on April 15th for investors who want a short exposure to bitcoin.

Horizons ETFs, Harvest ETFs and Accelerate Funds have reorganized their product suite and terminated the following ETFs in March: 

BlackRock Canada lowered the management fees on its core Canadian Fixed Income ETFs, effective April 1st.