Toronto-Dominion Bank, Mackenzie Investments to start Canadian bond, equity ETFs
The exchange-traded fund marketplace in Canada is about to get more crowded, with Mackenzie Investments starting four fixed-income products and Toronto-Dominion Bank set to rejoin the industry after exiting a decade ago.
Toronto-Dominion has filed documents for six new ETFs, including an international Canadian-dollar hedged equity fund and one Canadian bond ETF, according to filings with Canadian regulators. TD Asset Management spokeswoman Ana Aujla didn’t immediately return a message seeking comment.
Mackenzie Investments, a unit of Winnipeg, Manitoba-based IGM Financial Inc., plans to start four fixed-income ETFs, including a floating-rate fund and an unconstrained bond fund, the filings show. Sphere Investment Management Inc., also plans to start ETFs later this year, according to filings.
“The Canadian ETF space continues to expand,” Daniel Straus, an ETF industry analyst at National Bank of Canada said in a report, noting seven providers have added 18 ETFs in Canada this year.
About $87.5 billion of ETFs are traded in Canada, with BlackRock Inc’s iShares Canada unit the leader with a 51 per cent market share, according to January data from the Canadian ETF Association.
Toronto-Dominion was the first Canadian bank to launch ETFs in 2001, before shutting down the business in 2006 due to lack of investor interest.
Leo Salom, Toronto-Dominion’s head of wealth management, said at an October investor day conference that the bank would be “rolling out” passive and active ETFs “in the early part of next year.”