Canadian Imperial Bank of Commerce is the last of the major Canadian banks to enter the exchange-traded funds industry with plans to launch four new offerings.
CIBC Asset Management filed with regulators on Wednesday for two actively managed fixed-income funds and two smart-beta equity funds.
CIBC has been active in the industry as a sub-adviser to several ETFs from other providers, but this is the first set of proprietary exchange-traded funds that it has launched.
With management fees between 0.3 per cent and 0.4 per cent, the four ETFs are: CIBC Active Investment Grade Floating Rate Bond ETF (CAFR), CIBC Active Investment Grade Corporate Bond ETF (CACB), CIBC Multifactor Canadian Equity ETF (CMCE) and CIBC Multifactor U.S. Equity ETF (CMUE).
CIBC declined to comment on the bank’s decision to move into the ETF industry.
Earlier this month, National Bank of Canada also filed with regulators to enter the industry with four actively managed funds expected to launch later this year.
Canada’s ETF market now stands at 35 providers with more than $157-billion in assets.
BMO Global Asset Management is the largest bank provider, with a 31-per-cent market share, according to National Bank Financial. BMO launched its ETF business in 2009 and has since expanded it to more than $50-billion in assets under management, second only to investment giant BlackRock Asset Management Canada Ltd.
RBC Global Asset Management launched ETFs in 2011 and is now the country’s fifth-largest provider, up from No. 7 in September, 2017, managing $5-billion in assets.
Bank of Nova Scotia is the most recent bank to enter the industry, launching four ETF portfolios in May, 2018. Prior to launching its own funds, Scotiabank co-branded five actively managed Dynamic Funds ETFs with iShares, which have accumulated $1-billion in assets, according to NBF.
TD Asset Management re-entered the ETF industry in 2016 with the launch of six index funds. It first introduced ETFs in 2001, but exited the business in 2006 because of low trading volumes.
After two years of lacklustre growth and less than $80-million in assets, the bank expanded its fund lineup, launching three actively managed ETFs earlier this week. Those include the TD Active Preferred Share ETF (TPRF), TD Select Short Term Corporate Bond Ladder ETF (TCSB) and TD Select U.S. Short Term Corporate Bond Ladder ETF (TUSB; TUSB.U).