|By Marketwired .||
|July 24, 2014 07:00 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 07/24/14 -- Today BMO Global Asset Managment (BMO GAM) issued the Canadian ETF Outlook Update 2014. The report looks at key factors which have played a role in the growth of the Canadian Exchange Traded Fund (ETF) industry so far this year and expectations for future market trends for the remainder of this year and into next year.
At mid-year (as of June 30), the Canadian ETF industry sits at $70.1 billion in assets under management (AUM), up 11.1 per cent from year end 2013. So far this year, equity ETFs have had $529 million in inflows and fixed income ETFs saw impressive inflows of more than $2.5 billion. BMO GAM's ETF business recently surpassed $15 billion in AUM and currently consists of 58 funds.
"Capital markets are continuing to perform well and this has been reflected in the continued growth of the ETF industry in Canada," said Rajiv Silgardo, Co-CEO, BMO Global Asset Management. "Investors look to ETFs as portfolio construction tools used to access growth across sectors and geographies."
The report identified three key factors which have played a significant role in the ETF industry so far this year:
Competition and Growth: Continued growth results in more products being offered, and more competition. However, new strategies increase different forms of access to various asset classes. Additionally, the reduction of ETF management fees across major investment categories presents an opportunity for Canadians to invest very effectively in core broad market mandates.
International Efficiency: The use of Canadian ETFs for exposure to international markets will continue to gain popularity because of low fees and tax efficiencies compared to international products.
Smart Beta: Smart beta products which leverage alternative-weighting strategies, offer exposure based on various factors such as low volatility, momentum and quality. These products, targeting specific factors that provide specific investment outcomes over the long term, will continue to be successful.
Mr. Silgardo noted that providers have been focused on low volatility funds, which take advantage of rising markets while offering downside protection. Dividend-based products also offer some downside protection, while delivering higher and more tax efficient income from mature, stable companies.
Trends Moving Forward
According to the report, the substantial growth of ETF-based portfolios will continue, as these funds combine the efficiency, diversification and tradability of ETFs with professional active management.
As investors seek out income in the current low interest rate environment, option-based strategies that add income will expand globally and across sectors. Additionally, specialty solution ETFs will be in the spotlight as providers innovate to create products that will cater to specific investor needs.
ETFs have captured the attention of the market generally, but have been particularly significant for fixed income. Investors are reacting to market changes - specifically the ongoing American economic recovery - and are looking to position their bond portfolios in response to them. This could expand beyond Canadian bonds to U.S. and global fixed income ETFs.
"We expect the momentum into ETFs to continue at a rapid pace, as more investors use more ETFs to build better portfolios. This will result in more competition, innovation and benefits to users," added Mr. Silgardo.
To view the full report or for more information on ETFs, please visit: www.bmo.com/etfs.
About BMO ETFs
Since its inception in June 2009, BMO GAM's ETF business has grown to 58 funds; each offers numerous benefits to investors, including transparency, lower costs and tax efficiencies, while covering a number of diverse asset classes, sectors and regions.
BMO ETFs are managed and administered by BMO Asset Management Inc., a portfolio manager and investment fund manager and separate legal entity from Bank of Montreal.
Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the prospectus before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated.
BMO Global Asset Management comprises BMO Asset Management Inc., BMO Investments Inc., BMO Asset Management Corp. and BMO's specialized investment management firms.
®"BMO (M-bar roundel symbol)" is a registered trade-mark of Bank of Montreal, used under licence.
DevOps at Cloud Expo, taking place Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long dev...
Sep. 25, 2016 03:15 AM EDT Reads: 3,320
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business in 2016. However, IoT is far more complex than most firms expected. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, a renowned visionary and thought leader, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology and business models to adopt and leverage IoT. He will drill down to the components in this fra...
Sep. 25, 2016 03:00 AM EDT Reads: 1,388
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
Sep. 25, 2016 02:45 AM EDT Reads: 845
There is growing need for data-driven applications and the need for digital platforms to build these apps. In his session at 19th Cloud Expo, Muddu Sudhakar, VP and GM of Security & IoT at Splunk, will cover different PaaS solutions and Big Data platforms that are available to build applications. In addition, AI and machine learning are creating new requirements that developers need in the building of next-gen apps. The next-generation digital platforms have some of the past platform needs a...
Sep. 25, 2016 02:45 AM EDT Reads: 1,678
I'm a lonely sensor. I spend all day telling the world how I'm feeling, but none of the other sensors seem to care. I want to be connected. I want to build relationships with other sensors to be more useful for my human. I want my human to understand that when my friends next door are too hot for a while, I'll soon be flaming. And when all my friends go outside without me, I may be left behind. Don't just log my data; use the relationship graph. In his session at @ThingsExpo, Ryan Boyd, Engi...
Sep. 25, 2016 02:15 AM EDT Reads: 1,202
Information technology is an industry that has always experienced change, and the dramatic change sweeping across the industry today could not be truthfully described as the first time we've seen such widespread change impacting customer investments. However, the rate of the change, and the potential outcomes from today's digital transformation has the distinct potential to separate the industry into two camps: Organizations that see the change coming, embrace it, and successful leverage it; and...
Sep. 25, 2016 12:45 AM EDT Reads: 1,030
SYS-CON Events announced today that Numerex Corp, a leading provider of managed enterprise solutions enabling the Internet of Things (IoT), will exhibit at the 19th International Cloud Expo | @ThingsExpo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Numerex Corp. (NASDAQ:NMRX) is a leading provider of managed enterprise solutions enabling the Internet of Things (IoT). The Company's solutions produce new revenue streams or create operating...
Sep. 25, 2016 12:45 AM EDT Reads: 1,927
While DevOps promises a better and tighter integration among an organization’s development and operation teams and transforms an application life cycle into a continual deployment, Chef and Azure together provides a speedy, cost-effective and highly scalable vehicle for realizing the business values of this transformation. In his session at @DevOpsSummit at 19th Cloud Expo, Yung Chou, a Technology Evangelist at Microsoft, will present a unique opportunity to witness how Chef and Azure work tog...
Sep. 25, 2016 12:30 AM EDT Reads: 1,585
Data is an unusual currency; it is not restricted by the same transactional limitations as money or people. In fact, the more that you leverage your data across multiple business use cases, the more valuable it becomes to the organization. And the same can be said about the organization’s analytics. In his session at 19th Cloud Expo, Bill Schmarzo, CTO for the Big Data Practice at EMC, will introduce a methodology for capturing, enriching and sharing data (and analytics) across the organizati...
Sep. 24, 2016 09:45 PM EDT Reads: 1,604
SYS-CON Events announced today that Secure Channels will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. The bedrock of Secure Channels Technology is a uniquely modified and enhanced process based on superencipherment. Superencipherment is the process of encrypting an already encrypted message one or more times, either using the same or a different algorithm.
Sep. 24, 2016 09:00 PM EDT Reads: 1,426
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Sep. 24, 2016 08:30 PM EDT Reads: 1,443
The Internet of Things can drive efficiency for airlines and airports. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Sudip Majumder, senior director of development at Oracle, will discuss the technical details of the connected airline baggage and related social media solutions. These IoT applications will enhance travelers' journey experience and drive efficiency for the airlines and the airports. The session will include a working demo and a technical d...
Sep. 24, 2016 08:00 PM EDT Reads: 1,651
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Sep. 24, 2016 07:00 PM EDT Reads: 2,792
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Sep. 24, 2016 06:45 PM EDT Reads: 1,483
If you’re responsible for an application that depends on the data or functionality of various IoT endpoints – either sensors or devices – your brand reputation depends on the security, reliability, and compliance of its many integrated parts. If your application fails to deliver the expected business results, your customers and partners won't care if that failure stems from the code you developed or from a component that you integrated. What can you do to ensure that the endpoints work as expect...
Sep. 24, 2016 04:30 PM EDT Reads: 1,512