Canada’s ETF Scene Heats Up: Active, Leveraged, and Gold Strategies Make Waves

Canada’s ETF Scene Heats Up: Active, Leveraged, and Gold Strategies Make Waves

  • 03.06.2025 06:51
  • theglobeandmail.com
  • Keywords: ETF Innovation, Active Management, Leveraged Funds, Gold Exposure

Canada's ETF market is seeing innovation with new funds from Manulife, LongPoint, and BMO. These include active income strategies, leveraged ETFs, and gold-focused products aimed at meeting investor demand for tailored solutions.

Coinbase Products
open_in_newOriginal article

Estimated market influence

Manulife Investment Management

Positivesentiment_satisfied
Analyst rating: N/A

rolled out four new ETF series targeting fixed income and equity with active management focus on income and quality growth

LongPoint Asset Management

Positivesentiment_satisfied
Analyst rating: N/A

launched Canada’s first locally listed 3X leveraged and inverse ETFs, offering amplified exposure to major indices and sectors

BMO Asset Management

Positivesentiment_satisfied
Analyst rating: N/A

introduced a new suite of actively managed ETFs shaped by the insights of Brian Belski, Chief Investment Strategist at BMO Capital Markets

Context

Analysis of Canada’s ETF Scene: Key Insights and Market Implications

Manulife Investment Management

  • Launched four new ETF series targeting fixed income and equity strategies.
    • Includes a bond-focused fund blending government and corporate bonds across credit tiers for optimized returns.
    • Equity funds:
      • Globally diversified dividend growers with strong business models.
      • Canadian-focused dividend payers for monthly income.
    • Low-cost, intraday-traded vehicles offering active management and tailored outcomes.

LongPoint Asset Management

  • Introduced Canada’s first 3X leveraged and inverse ETFs traded in Canadian dollars.
    • Sector-specific ETFs include:
      • BNKU: Canadian banks.
      • CGMU: Canadian gold miners.
      • TLTU: Long-duration U.S. Treasuries.
    • Filed for 2x leveraged single-stock ETFs, including:
      • COIU CN: Coinbase stock.
      • MSTU CN: MicroStrategy.
    • Management fee: 1.55%, targeting high-volatility U.S. tech names.

BMO Asset Management

  • Launched a suite of actively managed ETFs led by Brian Belski.
    • New funds include:
      • BMO Diversified Equity & Fixed Income ETF: Balances equities and fixed income.
      • BMO U.S. Equity ETFs: Include growth, value, and dividend-focused strategies.
      • Hedged and unhedged units for currency risk management.
    • Introduced ZWGD, a gold income ETF providing exposure to long-term gold bullion with covered call spread for yield.

Market Implications and Industry Impact

  • Increased Competition: New ETFs from Manulife, LongPoint, and BMO intensify competition in Canada’s ETF market.
  • Innovation in Product Offerings: Expansion into leveraged, inverse, and gold-income strategies caters to diverse investor needs.
  • Tailored Investment Solutions: Reflects growing demand for outcome-driven, specialized investment products.
  • Strategic Considerations: Issuers are leveraging market trends and investor preferences to capture growth opportunities.
  • Regulatory Landscape: Potential scrutiny on leveraged ETFs due to risks associated with amplified market exposure.

Long-Term Effects

  • Diversification of Investment Options: Enhances investor portfolios with innovative strategies.
  • Potential for Market Volatility: Leveraged ETFs may amplify market movements, affecting investor returns.
  • Shift in Investor Behavior: Likely to drive increased trading activity and strategic allocations.

Conclusion

The launches by Manulife, LongPoint, and BMO underscore Canada’s ETF market evolution towards innovation and specialization. These moves address investor demands for tailored, high-performance solutions while intensifying competitive dynamics. The market is poised for further growth, with implications for both investors and issuers in terms of strategy and risk management.