Toronto-Dominion Bank, Mackenzie Investments to start Canadian bond, equity ETFs
The exchange-traded fund marketplace in Canada is about to get more crowded, with Mackenzie Investments starting four fixed-income products and Toronto-Dominion Bank set to rejoin the industry after exiting a decade ago.
Toronto-Dominion has filed documents for six new ETFs, including an international Canadian-dollar hedged equity fund and one Canadian bond ETF, according to filings with Canadian regulators. TD Asset Management spokeswoman Ana Aujla didn’t immediately return a message seeking comment.
Mackenzie Investments, a unit of Winnipeg, Manitoba-based IGM Financial Inc., plans to start four fixed-income ETFs, including a floating-rate fund and an unconstrained bond fund, the filings show. Sphere Investment Management Inc., also plans to start ETFs later this year, according to filings.
About $87.5 billion of ETFs are traded in Canada, with BlackRock Inc’s iShares Canada unit the leader with a 51 per cent market share, according to January data from the Canadian ETF Association.
Toronto-Dominion was the first Canadian bank to launch ETFs in 2001, before shutting down the business in 2006 due to lack of investor interest.
Leo Salom, Toronto-Dominion’s head of wealth management, said at an October investor day conference that the bank would be “rolling out” passive and active ETFs “in the early part of next year.”