Since they first hit the market in 1989, Exchange Traded Funds (ETFs) have exploded in popularity. There are currently more than 5,400 ETF products listed worldwide, holding approximately 2.6 trillion USD of assets. ETFs are popular because they are inexpensive for fund managers, help mitigate risk for investors and provide returns comparable to an index such as the S&P/TSX Composite, or the Dow Jones Industrial Average, but with less volatility.
As the ETF market has grown in Canada and around the world it has also become more diverse, with investors being able to choose from a broad range of products, grouped by asset classes or by sector. Consequently, it has become more critical for issuers of ETFs to find ways to differentiate themselves from the competition. However, as regulators are permitting more types of investment strategies for ETFs, there remains ample opportunity for new players to enter the ETF market.
The success of ETFs in the future may rely on reaching both Canadian and global investors, and trading on international exchanges. ETF issuers who are able to provide their international investors with more options may be at a distinct advantage, as ETF assets are projected to at least double, to more than 5 trillion USD, by 2020. A transfer agent with the capabilities to help you reach international investors can help provide a competitive edge when launching and trading an ETF.
Did you know that Computershare can provide transfer agent services to support your ETFs? We have the global reach, and depth and breadth of experience to provide comprehensive securityholder record-keeping for your ETF products, with experienced relationship managers there to guide you every step of the way.
We are also proud to be an Affiliate Member of the Canadian ETF Association (CETFA) and support their mission to provide information, education and access to resources on ETF investing in Canada.To learn more about issuing your ETF with Computershare, please speak with your Relationship Manager.
2 http://www.pwc.com/gx/en/asset-management/publications/pdfs/etf-2020-exchange-traded-funds-pwc.pdf