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etfs

Flows into the Canadian ETF market continued to slow throughout the second quarter of 2022, compared to the meteoric growth rate seen months ago. Nevertheless, new products continue to be launched as investors search for access to more investment opportunities. Broad market Canadian equity ETFs have seen some of the largest inflows this year. Canadian equity funds have fared much better than their U.S. counterparts in 2022, given their larger exposure to energy, financials and materials sectors.

New ETF launches in May were dominated by thematic equity. Blackrock released a new suite of megatrend ETFs, giving investors easy access to companies that are driving innovation and shaping the global economic future. Among the new offerings is the iShares Cybersecurity and Tech Index ETF (XHAK-T), which provides exposure to global stocks along the full value chain of the cybersecurity industry. The iShares Global Clean Energy Index ETF (XCLN-T) was another one of the new launches, providing diversified exposure to companies in the renewable energy sector. The ETFs charge a management of 0.39% and 0.35%, respectively.

CI Global Asset Management continues to launch new funds focused on investment opportunities in digital megatrends. The CI Galaxy Blockchain ETF (CBCX-T) invests in companies that are, either directly or indirectly, involved in the development and adoption of blockchain and digital assets. The ETF charges a management fee of 0.50% and hedges all currency risk. The CI Galaxy Metaverse ETF (CMVX-T) provides exposure to companies that are materially engaged in the interaction, enablement, and connectivity of the metaverse. Fidelity also released their own Metaverse ETF in May.

During the month, Horizons ETFs launched Canada’s first ETF providing exposure to the performance of companies active in copper-ore mining. The Horizons Copper Producers Index ETF (COPP-T) invests in both pure-play copper mining companies, as well as companies that have copper production as a significant business line. Although it is one of the world’s oldest industrial metals, copper has become increasingly important as an essential material component in electric vehicles. The ETF invests in small, mid and large cap companies listed on North American exchanges, and charges a management fee of 0.65%.

As previously announced, Evolve ETFs de-listed their suite of CleanBeta ETFs, including the Evolve S&P/TSX 60 CleanBeta Fund (SIX-T) and the Evolve S&P500 CleanBeta Fund (FIVE-T), after just 12 months of trading.

Launches

TICKERNAMEASSET CLASSSUBCATEGORIESRISK RATINGINCEPTION DATEMGT. FEE
XHAK-TiShares Cybersecurity and Tech Index ETFEquity Global, ITMedium to High2022-05-020.39%
XCLN-TiShares Global Clean Energy Index ETFEquity Global, ESGHigh2022-05-020.35%
XEXP-TiShares Exponential Technologies Index ETFEquity GlobalMedium2022-05-020.39%
XDNA-TiShares Genomics Immunology and Healthcare Index ETFEquity Global, HealthcareHigh2022-05-020.39%
CMVX-TCI Galaxy Metaverse ETFEquity GlobalHigh2022-05-030.50%
CBCX-TCI Galaxy Blockchain ETFEquity GlobalHigh2022-05-030.50%
PFAA-TPicton Mahoney Fortified Alpha Alternative FundAlternativeMarket NeutralLow to Medium2022-05-060.95%
FMTV-TFidelity Total Metaverse Index ETFEquity GlobalHigh2022-05-130.50%
COPP-THorizons Copper Producers Index ETFEquity Global, MetalsHigh2022-05-170.65%

Source: Inovestor

Terminations

TICKERNAMEASSET CLASSSUBCATEGORIESRISK RATINGTERMINATION DATEMGT. FEE
MIND-THorizons Active A.I. Global Equity ETFEquity GlobalMedium5/17/20220.55%
HEMB-THorizons Active Emerging Markets Bond ETFFixed IncomeEmerging MarketsLow to Medium5/17/20220.55%
FIVE-TEvolve S&P 500 CleanBeta Fund (CAD Hedged)Equity US, ESGMedium5/24/20220.20%
FIVE-U-TEvolve S&P 500 CleanBeta Fund (USD)Equity US, ESGMedium5/24/20220.20%
FIVE-B-TEvolve S&P 500 CleanBeta FundEquity US, ESGMedium5/24/20220.20%
SIXT-TEvolve S&P/TSX 60 CleanBeta FundEquity Canada, ESGMedium5/24/20220.20%

Source: Inovestor

Ben Kleinberg is Product Manager at Inovestor