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The Canadian ETF industry grew to $338 billion in December. For the full year 2021, a total of 202 ETFs were launched in Canada, bringing the total number of ETFs to 1,177. ESG, thematic and cryptocurrency themes dominated the crop of new launches in 2021. This was no different in the month of December, as two new thematic equity ETFs and a new Bitcoin ETF were introduced.

Horizons has partnered with US-based Global X ETFs to launch two new thematic ETFs. Horizons GX Cybersecurity Index ETF (“HBUG-T”) provides exposure to companies positioned to benefit from the increasing adoption of cybersecurity technology. Additionally, Horizons GX Telemedicine and Digital Health (“HDOC-T”) aims to provide exposure to global companies engaged in the field of telemedicine and digital healthcare. The funds charge management fees of 0.45% and 0.60%, respectively. Both products will invest in the underlying US listed ETFs, while optimizing exposure for Canadian investors by adding a currency hedge.

Fidelity Investments has followed other ETF providers and launched their first cryptocurrency product, the Fidelity Advantage Bitcoin ETF (“FBTC-T”), and US dollar version (“FBTC-U-T”). Earlier last year, Fidelity Clearing Canada had become the first IIROC regulated dealer to offer secure digital asset trading and custody solutions for institutional investors. That institutional-grade security will be used to store the bitcoin held by the Fidelity Advantage Bitcoin ETF. The ETF charges a management fee that is among the lowest of its peers, at 0.40%, while it’s expected MER will be capped at 0.95%.

BMO Global Asset Management has added to its ETF offering by launching the ETF Series units of its BMO Money Market Fund (“ZMMK-T”). The fund invests in high quality money market instruments issued by government and corporations in Canada.

During the month, Horizons completed the merger of two ETFs. Unitholders of Horizons Morningstar Hedge Fund Index (“HHF-T”) received units of Horizons ReSolve Adaptive Asset Allocation ETF (“HRAA-T”) based on the stated exchange ratio, as set out in the table below, for each unit held as at December 3, 2021.

Launches

TICKERNAMEASSET CLASSSUBCATEGORIESRISK RATINGINCEPTION DATEMGT. FEE
HBUG-THorizons GX Cybersecurity Index ETFEquityGlobal, TechMedium to High2021-12-010.45%
HDOC-THorizons GX Telemedicine and Digital Health Index ETFEquityGlobal, HealthcareHigh2021-12-010.60%
FBTC-TFidelity Advantage Bitcoin ETFAlternativeCryptocurrencyHigh2021-12-010.40%
FBTC-U-TFidelity Advantage Bitcoin ETF USDAlternativeCryptocurrencyHigh2021-12-010.40%
ZMMK-TBMO Money Market Fund ETFCashCanadaLow2021-12-010.14%

Terminations

TICKERNAMEASSET CLASSSUBCATEGORIESRISK RATINGTERMINATION DATEMGT. FEE
QMA-TAGFiQ Global Balanced ETF PortfolioEquityGlobal, Multi-AssetLow to Medium2021-12-150.55%
QMY-TAGFiQ Global Income ETF PortfolioEquityGlobal, Multi-AssetLow2021-12-150.55%

ETF Merger

TickerTERMINATING ETFTickerCONTINUING ETFEXCHANGE RATIO
HHF-THorizons Morningstar Hedge Fund Index ETFHRAA-THorizons ReSolve Adaptive Asset Allocation ETF1.5745491:1

Ben Kleinberg is Product Manager at Inovestor

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